Orchid Pharma (ORCHPHARMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 sales reached INR 222.7 crores (₹22,269.86 lakhs), up 12% year-over-year, with H1 FY25 sales at INR 467.1 crores, up 22% year-over-year.

• Q2 FY25 EBITDA was INR 37.5 crores, up 20% year-over-year; H1 FY25 EBITDA rose to INR 78.6 crores, up 44% year-over-year.

• Q2 FY25 net profit was ₹2,562.58 lakhs (standalone) and ₹2,723.65 lakhs (consolidated); H1 FY25 net profit was ₹5,472.84 lakhs (standalone) and ₹5,658.71 lakhs (consolidated).

• Orblicef (Enmetazobactam-Cefepime) launched in India; initial EU sales of Enmetazobactam began, with U.S. commercialization pending.

• Capacity enhancement project commissioned ahead of schedule; groundwork for 7-ACA project started.

Financial highlights

• H1 FY25 sales grew 22% year-over-year to INR 467.1 crores.

• H1 FY25 EBITDA rose to INR 78.6 crores from INR 54.7 crores last year; operating EBITDA up 39% year-over-year to INR 66.8 crores.

• Q2 FY25 gross margin was 39.7%, up from 39.3% in Q2 FY24; EBITDA margin for Q2 FY25 was 17%.

• PAT margin for Q2 FY25 was 11.5%, up from 10.2% in Q2 FY24.

• Revenue split: 40% regulated markets, 60% emerging markets; oral vs. sterile split at 70%/30%.

Outlook and guidance

• Management optimistic about future growth, driven by new launches, capacity expansion, and ongoing R&D in cephalosporins and fermentation-based drug development.

• No need for further CapEx in the next couple of years; current capacity sufficient for projected growth.

• Company is progressing with amalgamation of its holding company, Dhanuka Laboratories, with all regulatory no-objection letters obtained.