Piramal Pharma (PPLPHARMA) Q3 25/26 earnings summary

Executive summary

• FY26 was challenging due to inventory destocking in a major on-patent product, slow early-stage CDMO order inflows from weak US biopharma funding, and regulatory delays in ex-US inhalation anesthesia launches.

• Early signs of recovery are visible with increased RFPs and order inflows since October 2025, supported by improved US biopharma funding and M&A activity.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors, with results published as per regulatory requirements.

• Acquisition of Kenalog, a branded injectable, for $35M upfront and up to $65M in contingent payments, aims to broaden the complex hospital generics (CHG) portfolio.

Financial highlights

• Q3 FY26 consolidated revenue was ₹2,139.87 crore ($2,140M), down 3% YoY; nine-month revenue was ₹6,117.31 crore, down 4% YoY.

• Q3 FY26 consolidated EBITDA was ₹239 crore (margin 11%), down 32% YoY; nine-month EBITDA was ₹628 crore (margin 10%), down 36% YoY.

• Standalone net profit for Q3 FY26 was ₹128.91 crore, up from ₹118.80 crore YoY; consolidated net loss for Q3 FY26 was ₹136.19 crore, compared to a profit of ₹3.68 crore YoY.

• BCH (consumer healthcare) sales grew 20% in Q3 and 16% over nine months, with power brands delivering 30% growth in Q3.

• Q3 FY26 PAT before exceptional items was -₹95 crore; after exceptional items, -₹136 crore.

Outlook and guidance

• Expecting sequential growth in Q4, historically the strongest quarter, but not year-over-year growth due to a large prior-year order.

• Long-term growth prospects remain positive, with investments in capacity and capabilities to support recovery.

• FY26 and 2030 guidance are reaffirmed, though recognized as a stretch.

• The company continues to monitor regulatory changes and expects to account for further impacts from new labour codes as clarifications emerge.