Piramal Pharma’s Q1 results reflect the ongoing impact of supply chain disruptions and destocking in key product categories, pushing the company into a net loss despite stable revenue.
Piramal Pharma Limited posted a net loss of ₹82 crore in the first quarter of FY26, mainly due to the destocking of one of its large on-patent commercial products. The company’s revenue from operations stood at ₹1,934 crore, marking a 1 per cent decline compared to the same period last year.
According to The Economic Times, the company’s EBITDA dropped by 26 per cent year-on-year to ₹165 crore. The EBITDA margin also declined by two percentage points. Despite a reported 8 per cent improvement in Profit After Tax (after exceptional items), the company remained in the red. Net debt stood at 2.6 times its EBITDA.
Chairperson Nandini Piramal stated that the CDMO business, excluding the destocking impact, achieved mid-teen revenue growth in the quarter, with better margins at overseas sites. However, the complex generics division showed only a 1 per cent year-on-year growth to ₹637 crore, affected by supply chain issues. The company identified disruptions in the intrathecal and pain management segments as key contributors to the sluggish performance. Recovery in these areas is expected by the second half of the current fiscal and in the following year.
On the other hand, Piramal’s consumer healthcare segment recorded a 15 per cent increase year-on-year, reaching ₹302 crore. This segment showed resilience compared to other verticals.
Despite near-term pressure, the company reiterated its long-term targets, including achieving $2 billion in revenue by FY30, a 25 per cent EBITDA margin, and high-teen return on capital employed. The company plans to address operational challenges while pursuing these targets through ongoing capacity expansion and strategic partnerships across its CDMO and consumer health businesses.
