Reduce Piramal Pharma; target of Rs 160: Choice Institutional Equities

Choice Institutional Equities recommended reduce rating on Piramal Pharma with a target price of Rs 160 in its research report dated January 29, 2026.

Broker Research

January 30, 2026 / 11:30 IST

Reduce

Choice Institutional Equities's report on Piramal Pharma

PIRPHARM continues to face pressure on overall financial performance and we expect these challenges to persist through FY26. The weakness is driven by inventory destocking by a key customer and operational constraint at the Lexington facility. We expect FY26 revenues to remain under pressure, with some recovery only from FY27. In line with the management guidance, we expect EBITDA margin to be ~8.5%, a sharp decline from ~15.8% in FY25. Tax rates remain volatile, reflecting losses in overseas CDMO operations. In light of these headwinds, we have revised our estimate downward by 2.0%/2.9% for FY26E/FY27E.

Outlook

Given the uncertainty around the CDMO order book and revenue visibility, we have also cut our valuation multiple by 10% and will continue to closely monitor performance over the next few quarters for signs of margin recovery and revenue stabilisation. Our revised TP is INR 160 (from INR 195), and we maintain our REDUCE rating.

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