More Stories

Informist, Saturday, Oct. 24, 2026

 

By Gunjan Rajput

 

NEW DELHI – Piramal Pharma Ltd. is expected to remain loss-making for the sixth consecutive quarter, as inventory destocking in the large contract development and manufacturing organisation product and slower order inflows continue to impact profitability. The revenue is expected to rise on a low base and with recovery in the contract development and manufacturing organisation business, although the growth in other businesses is also likely to support the top line, according to analysts.

 

The pharmaceutical company's consolidated net loss is expected to narrow nearly 28% year-on-year to INR 717.40 million from INR 992.20 million, while the revenue is expected to rise nearly 14% year-on-year to INR 23.27 billion, according to estimates from five brokerages.

The highest estimate for the company's net loss is INR 1.23 billion by Choice Equity Broking Pvt. Ltd., while the lowest is INR 262 million by HDFC Securities Ltd. The highest estimate for revenue is INR 24.05 billion by JM Financial Institutional Securities Pvt. Ltd., while the lowest is INR 22.04 billion by Choice Equity.

 

Piramal Pharma last reported a consolidated net profit of INR 1.54 billion in the December quarter of the financial year 2024-25 (Apr-Mar). The company has reported net losses in each of the subsequent five quarters. However, the loss in the December quarter of FY26 was primarily due to a one-time impairment charge of INR 1.76 billion on intangible assets under development. Before the exceptional item, the company had reported a net profit of INR 1.67 billion in that quarter.

 

In the June quarter of FY26, the company attributed weakness in its contract development and manufacturing organisation business to "destocking in one large on-patent commercial product". The business was also affected by inconsistent recovery in US biopharma funding and uncertainty over global trade policies, which affected order inflows and customer decision-making. Piramal Pharma has also cited softer sales of inhalation anaesthesia in overseas markets as a drag on performance.

 
For the reporting quarter, revenue growth is expected to be supported by the contract development and manufacturing organisation business, complex hospital generics, and India consumer healthcare businesses. Improved contract development and manufacturing organisation order inflows and execution, alongside sustained demand in hospital generics and consumer healthcare, are expected to support growth despite the continued impact of destocking.

 

Complex hospital generics sales are expected to rise 18-26% on year, according to estimates from three brokerages. India consumer healthcare revenue is expected to increase 13-14% on year, while CDMO revenue is seen rising 17%, according to estimates from two brokerages.

 

Piramal Pharma's operating profit is expected to rise over 48% year-on-year to INR 2.35 billion, compared with INR 1.59 billion in the year-ago quarter, according to estimates from four brokerages. The operating profit is calculated by subtracting the other income from the earnings before interest, tax, depreciation and amortisation.

The company's operating profit margin is expected to improve at around 8.5-10.2%, according to estimates from four brokerages. The company had posted an operating profit margin of 7.8% in the year-ago quarter. The operating profitability is expected to benefit from higher contract development and manufacturing organisation utilisation and cost-optimisation measures, according to analysts.

 

Investors will monitor contract development and manufacturing organisation order inflows, execution at overseas facilities and progress at the Lexington expansion for signs of a sustained recovery.

 

Piramal Pharma is scheduled to declare its September-quarter financial results on Tuesday. Friday, shares of the company ended at INR 191.07 apiece on the National Stock Exchange, down over 2%. The stock is down nearly 3% since the company reported its June quarter results.

 

Of the five brokerage reports on the company available with Informist, all have a "buy" or equivalent recommendation on the stock, with an average target price of INR 241. This is over 26% higher than the current market price.

 

Following are earnings estimates for Piramal Pharma for the September quarter from five brokerages, in the descending order of estimates for net loss, in INR million:

 

Broker Name	Net Sales	Net Loss	EBITDA
Choice Equity Broking Pvt. Ltd.	22,037	1,226.00	--
Kotak Securities Ltd.	23,358	782	2,378
Motilal Oswal Financial Services Ltd.	23,548	684	2,237
JM Financial Institutional Securities Ltd.	24,050	633	2,450
HDFC Securities Ltd.	23,380	262	2,338
Average	23,274	717	2,350

 

End

 

Edited by Biswadip Mitra

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.