Motilal Oswal's research report on Piramal Pharma
Piramal Pharma (PIRPHARM) exhibited lower-than-expected financial performance in 1QFY26. Lower CDMO and complex hospital generics (CHG) sales led to a considerable operating deleverage. This resulted in a 48% miss on EBITDA. However, the reduction in interest costs and lower tax rates capped the loss at INR1b for the quarter. Management, however, has kept its FY26 guidance intact, implying 1QFY26 to be an aberration. A pickup in business is anticipated in the
coming quarters.
Outlook
We value PIRPHARM on an SoTP basis (at 18x EV/EBITDA for CDMO business, 12x EV/EBITDA for CHG business, and 13x EV/EBITDA for consumer health (ICH) business) to arrive at our TP of INR240.
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