Orchid Pharma (ORCHPHARMA) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 sales were INR 194 crore, down 13% year-on-year, with H1 FY26 sales down 22% compared to H1 FY25.

• EBITDA for Q2 FY26 was INR 6 crore, down from INR 14 crore in Q1 FY26 and 61% lower year-on-year, with margin falling to 8% from 17%.

• Net profit after tax (PAT) fell 92% year-on-year in Q2 FY26, but consolidated net profit was ₹1,371.12 lakhs, up from a Q1 FY26 loss.

• Board approved unaudited standalone and consolidated results for Q2 and H1 FY26, with a modified auditor's conclusion.

• Completed acquisition of global rights to emmetazobactam and Exblifeb, consolidating global antibiotic presence.

Financial highlights

• Q2 FY26 sales: INR 194 crore, down 13% YoY, up 13% QoQ; H1 FY26 sales down 22% YoY.

• Gross margin declined to 32% from 43% in Q1 FY26 and to 38% from 39% YoY.

• EBITDA: INR 6 crore (down from INR 14 crore in Q1 FY26); EBITDA margin dropped to 8% from 17% YoY.

• PAT margin fell to 1% in Q2 FY26 from 11% in Q2 FY25.

• Consolidated net profit for Q2 FY26 was ₹1,371.12 lakhs, with EPS of ₹2.94.

Outlook and guidance

• No signs of antibiotics market recovery expected in FY26; focus on licensing Exblifeb and progressing key projects.

• AMS division expected to break even by next year, with sales team potentially breaking even by Q4 FY26.

• Royalty and sales data from emmetazobactam acquisition to be reflected from the December quarter onwards.

• Awaiting NCLT approval for Dhanuka Labs amalgamation, with next hearing in November 2025.