Orchid Pharma (ORCHPHARMA) Q4 24/25 earnings summary

Executive summary

• FY2024 sales reached INR 922 crore, up 13% year-over-year, with Q4 sales at INR 237 crore, up 9% year-over-year.

• EBITDA for FY2024 was INR 156 crore, up 11%, with Q4 EBITDA at INR 40 crore; PAT for FY2024 rose 12% to INR 106 crore, though Q4 PAT dropped 15%.

• The AMS division, launched last year, incurred a INR 9 crore operating loss and is expected to remain EBITDA negative for two more years as it builds market presence.

• Inspections by European and U.S. authorities were completed satisfactorily in the last six months.

• The merger of Dhanuka Laboratories into the company has been cleared by the NCLT, with combined revenue expected to exceed INR 1,500 crore and EBITDA around INR 175 crore.

Financial highlights

• Full-year sales increased 13% to INR 922 crore, and EBITDA rose to INR 156 crore; Q4 sales grew 9% to INR 237 crore, with Q4 EBITDA at INR 40 crore.

• FY2024 PAT was INR 106 crore, up 12%, but Q4 PAT dropped 15% year-over-year.

• Gross margin for FY2024 remained stable at 41%.

• Employee expenses increased 23% year-over-year for FY2024.

• Dhanuka Laboratories reported annual sales of INR 506 crore and EBITDA of INR 48 crore.

Outlook and guidance

• FY2026 is expected to be muted due to ongoing pricing pressure and increased CapEx for the 7-ACA facility.

• Mid-teen margin aspirations remain, supported by volume growth, mix optimization, and cost control.

• Two to three differentiated testosterone ANDAs are planned for the US market in the next 12-18 months.

• AMS division expected to break even in two years, with significant growth anticipated for Enmetazobactam and future launch of Cefiderocol.