Company Update : Piramal Pharma Ltd by Motilal Oswal Financial Services Ltd
Result below estimates
* PIRPHARM’s revenue dipped 9% YoY to INR20.4b (in line) in 2Q.
* The CDMO segment’s (52% of total sales) revenue declined 21% YoY to INR10b.
* The complex hospital generics segment (CHG; 32% of total sales) revenue was almost flat YoY at INR6.4b.
* The India consumer healthcare segment (ICH; 16% of total sales) revenue grew 15% YoY to INR3b.
* Gross margin expanded 110bp YoY to 65.6%.
* However, EBITDA margin contracted 740bp YoY to 7.8%, largely due to lower operating leverage (employee costs/other expenses rose 500bp/ 370bp as a % of sales).
* EBITDA declined 54% YoY to INR1.6b (our est: INR2.2b).
* Adj. Loss came in at INR1b (our est: PAT of INR40m) for the quarter vs PAT of INR226m in 2QFY25.
Other highlights
* CDMO:
* Destocking of one large on-patent commercial product led to a YoY decline in CDMO business for the quarter.
* PIRPHARM is witnessing a significant pick-up in biopharma funding in Sep’25/Oct’25. Sustained momentum of funding would lend impetus to early-stage order inflows.
* PIRPHARM is enhancing its business development team to adapt to the market dynamics and better engage with its customers.
* The multi-million-dollar joint investment with New Amsterdam Pharma will provide commercial capacity for a fixed-dose combination of Obicetrapib and Ezetimibe to meet commercial demand.
* CHG:
* Intrathecal therapy sales were lower in 2QFY26 due to temporary supply challenges. The company expects sales to normalize in 2HFY26.
* PIRMPHARM is working on obtaining regulatory approvals for Sevoflurane in the ex-US markets from our Digwal plant in India.
* ICH:
* Added 26 new products/SKUs in 1HFY26. ? PIRPHARM had 12% of its ICH spent towards media and promotional activities.
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