Piramal Pharma Q3 results: Firm posts net loss of Rs 136 crore on weak CDMO demand

Piramal Pharma

• Piramal Pharma reported a Rs.95 crore net loss in Q3FY26, vs. Rs.4 crore profit last year.
• Revenue dropped 3% due to weaker CDMO orders and inventory destocking.
• Consumer healthcare grew 30%, boosted by new launches and e-commerce.

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Piramal Pharma Ltd on January 29 reported wider loss for the December quarter, hit by a combination of inventory destocking, weak early‑stage CDMO orders and regulatory delays in its hospital generics portfolio.

The drugmaker posted a consolidated net loss of Rs 136.19 crore after accounting for Rs 41 crore in exceptional items. The company reported a profit of Rs 4 crore in the year-ago period.

Revenue declined 3 percent year‑on‑year to Rs 2,140 crore, pulled down primarily by a 9 percent fall in the Contract Development and Manufacturing Organisation  (CDMO) segment. The CDMO demand softened due to inventory corrections in one large on‑patent commercial product and slower order inflows in H1FY26, stemming from an inconsistent recovery in US biopharma funding and global trade policy uncertainties, the company said .

EBITDA contracted 32 percent to Rs.239 crore, with margins narrowing to 11 percent from 16 percent, though the company said ongoing cost‑optimization measures partly offset the drag from lower revenues.

Performance in the complex hospital generics (CHG) unit was mixed while Sevoflurane continued to gain share in the US, regulatory delays at the Digwal facility held back ex‑US inhalation anesthesia supplies, adding to the quarter’s pressure. In contrast, the consumer healthcare (PCH) division delivered strong momentum, with power brands growing 30 percent year‑on‑year, supported by new launches and rapid e‑commerce expansion, which accounted for 26 percent of sales in the period.

Chairperson Nandini Piramal described FY26 as “a muted year” due to destocking and slow early‑stage CDMO orders, but said the company is now seeing improving visibility with a pickup in RFPs and order inflows since October 2025, helped by better biopharma funding and rising M&A activity in the US healthcare market. She added that Q4 has historically been the company’s strongest quarter and is expected to remain so this year.

Despite the earnings pressure, Piramal Pharma reiterated its investment commitments, noting that its $90 million capex programme to expand the Lexington and Riverview facilities remains on track, with growing interest from customers—particularly those seeking onshoring opportunities in North America.

The company also highlighted progress on compliance metrics, having successfully closed 30 regulatory inspections, including two USFDA audits, in the first nine months of FY26, maintaining its “Zero OAI” status across sites.

At 11.14 am, the Piramal Pharma stock was trading at Rs 158.85 on NSE, up 3.18 percent.