Piramal Pharma announces Q2 & H1 FY26 results; Revenue and EBITDA decline YoY
Piramal Pharma reported a decline in Q2 & H1 FY26 consolidated revenue and EBITDA, with a net loss, primarily due to CDMO inventory destocking. Management notes improving biopharma funding and anticipates better future performance.
The reported decline in consolidated revenue and EBITDA, along with a net loss, indicates a noticeable negative impact on the company's short-term financial health. However, the decline is largely attributed to temporary market-specific factors (CDMO inventory destocking, biopharma funding inconsistency) rather than fundamental business issues. The company's efforts in cost optimization, debt reduction, and positive signs in biopharma funding for future orders suggest a potential for recovery, making the overall impact medium rather than high.
The company reported a significant decline in revenue and EBITDA, and a net loss for Q2 and H1 FY26, primarily driven by challenges in the CDMO segment due to customer inventory destocking and inconsistent biopharma funding. This is a negative financial outcome. However, the management highlighted strong growth in the India Consumer Healthcare (ICH) segment (15%) and Power Brands (20%), successful cost optimization, debt reduction, and a significant uptick in biopharma funding in recent months (Sept-Oct 2025), which is expected to drive future order inflows. This forward-looking positive outlook balances the immediate negative financial results.
* Piramal Pharma Limited announced its standalone and consolidated financial results for the Second Quarter (Q2) and Half Year (H1) ended 30th September 2025. * Consolidated Financial Highlights for Q2 FY26 (YoY Growth): * Revenue from Operations: ₹2,044 crore (down 9%) * CDMO Revenue: ₹1,044 crore (down 21%) * CHG Revenue: ₹644 crore (0% growth) * ICH Revenue: ₹319 crore (up 15%) * EBITDA: ₹224 crore (down 44%) * EBITDA Margin: 11% (compared to 18% in Q2 FY25) * PAT: (₹99) crore (compared to a profit of ₹23 crore in Q2 FY25) * Consolidated Financial Highlights for H1 FY26 (YoY Growth): * Revenue from Operations: ₹3,977 crore (down 5%) * CDMO Revenue: ₹2,041 crore (down 14%) * CHG Revenue: ₹1,281 crore (up 1%) * ICH Revenue: ₹621 crore (up 15%) * EBITDA: ₹389 crore (down 38%) * EBITDA Margin: 10% (compared to 15% in H1 FY25) * PAT: (₹181) crore (compared to a loss of (₹66) crore in H1 FY25) * The YoY growth in revenue and EBITDA was primarily impacted by inventory destocking by a customer in one large CDMO order and inconsistent recovery in US biopharma funding. * Efforts towards cost optimization and operational excellence partly offset the impact on EBITDA. * Net-Debt at the end of H1 FY26 reduced by ₹228 crore (versus FY25) to ₹3,971 crore, maintaining a net debt to EBITDA ratio below 3x. * The company released its 4th Annual Sustainability Report for FY25. * Nandini Piramal, Chairperson, Piramal Pharma Limited, commented: "YoY growth in the CDMO Business was primarily impacted by inventory destocking in one large on-patent commercial product. Inconsistent recovery in US biopharma funding along with uncertainties on global trade policies led to adverse impact on order inflows and customer decision making during H1 FY26. However, in the months of September and October 2025, we have seen a significant pick up in biopharma funding, which if sustains, should lend impetus to increased RFPs and orders going forward. Also, we are seeing strong customer interest for onshore offerings which bodes well for the investments we have made in our overseas sites. In our CHG business we further strengthened our leadership position in the US Sevoflurane market, while simultaneously working to obtain regulatory approvals for ex-US markets from our India plant. Our consumer business delivered healthy mid-teen growth, seamlessly collaborating with various stakeholders for smooth transition to new GST rates changes." * Key Business Highlights: * CDMO: Experienced impact from inventory destocking and slower early-stage discovery, but is seeing early signs of improvement with funding uptick. Noted increasing RFPs/RFIs for onshore manufacturing and differentiated capabilities. Entered a multi-million-dollar joint investment at Sellersville site (US) with NewAmsterdam Pharma for commercial manufacturing capacity. Successfully closed 19 regulatory inspections, including 1 USFDA inspection with zero observations in H1 FY26. * Complex Hospital Generics (CHG): Maintained leadership in the US Sevoflurane market (45% value market share in Mar'25) and #1 rank in intrathecal Baclofen in the US (75% value market share). Intrathecal sales were impacted by temporary supply challenges, expected to normalize in H2 FY26. Working on ex-US regulatory approvals for Sevoflurane from the Digwal plant in India. * Piramal Consumer Healthcare (PCH): Power Brands grew 20% YoY during Q2 FY26, contributing 51% to total PCH sales. E-commerce sales grew over 40% YoY, contributing about 24% to PCH sales. Launched 26 new products and SKUs in H1 FY26. * Piramal Pharma Limited will host a conference call for investors/analysts on 06th November 2025 from 9:30 AM to 10:15 AM (IST) to discuss its Q2 and H1 FY26 Results.
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