Orchid Pharma (ORCHPHARMA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 sales were INR 207 crore, down 5% year-over-year; nine-month sales at INR 574 crore, down 16% year-over-year.

• EBITDA margin for Q3 was 6% versus 17% last year; nine-month EBITDA at INR 58 crore, margin at 10% versus 17% last year.

• Profit before tax (PBT) and profit after tax (PAT) for Q3 FY26 were both INR 7 crore, compared to a loss of INR 6 crore in Q3 FY25.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, with limited review by statutory auditors.

• Global antibiotics market remains under stress, with pricing pressure and volume erosion in oral segment.

Financial highlights

• Q3 sales: INR 207 crore (down 5% YoY); nine-month sales: INR 574 crore (down 16% YoY).

• Q3 EBITDA: INR 13 crore (down 65% YoY); nine-month EBITDA: INR 58 crore (down 50% YoY).

• Gross margin for Q3 at 31%, lower due to reduced regulated market sales and inventory devaluation.

• Standalone total income for Q3 FY26 was INR 217.34 crore, up from INR 207.27 crore in Q2 FY26 and INR 193.52 crore in Q3 FY25.

• Domestic business is 20% of revenue, exports 80%; regulated markets now 25% of exports.

Outlook and guidance

• FY26 is a transition year; medium-term outlook positive with new product launches and cost discipline.

• Sequential sales recovery observed from Q3 FY25 to Q3 FY26, but overall year-over-year decline persists.

• Green shoots of recovery seen in January, but sustainability remains uncertain.

• Gross margins expected to improve as non-regulated market pricing recovers; regulated market margins remain 40%-65%.

• Guidance for future segments and merged business to be provided next quarter.