Piramal Pharma (PPLPHARMA) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 performance was broadly in line with guidance, with sales lumpiness from CDMO contract timing and CHG institutional orders.

• Excluding destocking in a large CDMO product, underlying revenue growth was in early double digits year-over-year.

• Net profit grew 8% YoY, aided by lower interest costs and a reduced effective tax rate.

• H2 has historically outperformed H1 in both revenue and EBITDA contribution.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved and published as per regulatory requirements.

Financial highlights

• CDMO revenue was INR 997 crore, a 6% YoY decline; excluding destocking, mid-teen growth was achieved.

• Consumer Healthcare grew 15% YoY, led by 18% growth in Power Brands and 41% growth in e-commerce.

• Consolidated revenue from operations for Q1 FY26 was ₹1,933.71 crore, down from ₹1,951.14 crore in Q1 FY25.

• EBITDA margin compressed to 9% from 11% YoY; gross margins expected to remain in the 64%-65% range midterm.

• Net debt to EBITDA stands at 2.6, with a long-term target of 1 by FY2030.

Outlook and guidance

• On track for FY2026 guidance: mid-single-digit revenue growth, mid-teen EBITDA margin, and YoY net profit growth.

• FY2030 aspiration: $2 billion+ revenue, 25% EBITDA margin, high-teen growth, and net debt to EBITDA of ~1x.

• Strategic goals: $1.2B CDMO, $600M CHG, $200M PCH revenue by FY2030.

• CHG business expected to see significant growth in H2, with double-digit growth for the full year.

• Capex guidance for FY2026: $100–$125 million, mainly for North American facilities and product development.