Piramal Pharma Q2 FY26: ₹99 Crore Net Loss Amid CDMO Business Challenges, Revenue at ₹2,044 Crore

Piramal Pharma Ltd reported a consolidated net loss of ₹99 crore for the quarter ended September 30, 2025, contrasting sharply with a ₹23 crore profit in the same quarter last year. Revenues from operations dropped 9% year-on-year to ₹2,044 crore. The significant decline was mainly driven by weakness in the Contract Development and Manufacturing Organization (CDMO) segment, which saw a 21% drop in revenue to ₹1,044 crore. This downturn stemmed largely from inventory destocking by a major customer and slower order inflows, linked to an uneven recovery in US biopharma funding and global trade uncertainties.

 

EBITDA fell 44% to ₹224 crore, with margins compressing to 11% from 18% a year ago. For the first half of FY26, revenue decreased 5% to ₹3,977 crore and EBITDA dropped 38% to ₹389 crore. Despite these setbacks, Piramal Pharma maintained a leading market share in US sevoflurane and intrathecal baclofen segments. The Complex Hospital Generics (CHG) business held steady at ₹644 crore, while the Consumer Healthcare (ICH) segment delivered strong 15% growth to ₹319 crore, fueled by power brands and a 40% surge in e-commerce sales.

 

Chairperson Nandini Piramal highlighted early signs of recovery in September and October, with increasing interest in onshore manufacturing and innovative capabilities like antibody drug conjugates (ADCs) and sterile fill-finish manufacturing. The company also reduced net debt to ₹3,971 crore, with a net debt-to-EBITDA ratio below 3x, reinforcing financial stability.

 

Notable updates:  

This quarter’s results underscore challenges in the biopharma CDMO market but also highlight resilience in consumer and hospital generics segments alongside strategic strength in financial management and product innovation.

 

Sources: Moneycontrol, Piramal Finance Q2 FY26 Results Presentation