Piramal Pharma Navigates Headwinds, Eyes Turnaround in Q3 FY26

Piramal Pharma Limited, a prominent global pharmaceutical, health, and wellness company, recently announced its consolidated financial results for the third quarter (Q3) and nine months (9M) ended December 31, 2025. The period presented a mixed picture, with the company facing significant headwinds that impacted its top-line and bottom-line performance, yet simultaneously laying strategic groundwork for future growth.

For Q3 FY26, Piramal Pharma reported a total Revenue from Operations of ₹2,140 crore, marking a (3)% year-over-year decline from ₹2,204 crore in Q3 FY25. The nine-month period also saw a (4)% decline, with revenue at ₹6,117 crore compared to ₹6,397 crore in 9M FY25. This revenue contraction significantly impacted profitability, with EBITDA for Q3 FY26 falling to ₹239 crore, a (32)% drop from ₹350 crore in the prior year. The 9M FY26 EBITDA stood at ₹628 crore, a (36)% decline from ₹977 crore in 9M FY25. Consequently, the company reported a Net Profit After Tax (after exceptional items) of (₹136) crore in Q3 FY26 and (₹317) crore in 9M FY26, a stark contrast to the positive figures in the previous year.

Segmental Performance and Underlying Challenges

The Contract Development and Manufacturing Organization (CDMO) business, a key segment, experienced a (9)% YoY revenue decline in Q3 FY26, reaching ₹1,166 crore. This was primarily attributed to inventory destocking by a large customer for an on-patent commercial product and slower early-stage order inflows in H1 FY26. The inconsistent recovery in US biopharma funding, coupled with global trade policy uncertainties, further exacerbated the challenges, affecting order inflows and customer decision-making. Despite these pressures, the company's efforts in cost optimization and operational excellence partly mitigated the impact on EBITDA.

In contrast, the Complex Hospital Generics (CHG) business demonstrated resilience, posting a 2% YoY revenue growth in Q3 FY26 to ₹668 crore. This growth was driven by strong performance in its Inhalation Anesthesia portfolio, particularly in the US Sevoflurane market, where it maintained a #1 rank with a 47% value market share, up from 44% in March 2024. However, regulatory delays impacted the initial pick-up of Sevoflurane supplies from the lower-cost Digwal facility for ex-US markets. The Intrathecal Therapy segment saw normalized supplies after Q2 FY26 disruptions, maintaining its #1 rank in US intrathecal Baclofen with a 75% value market share.

The Piramal Consumer Healthcare (PCH) business emerged as a strong performer, recording a robust 20% YoY revenue growth in Q3 FY26, reaching ₹334 crore. This segment's power brands, including Little's, Lacto Calamine, CIR, and i-range, were the primary growth drivers, contributing 51% to total PCH sales in 9M FY26. E-commerce sales also witnessed exceptional growth, expanding by 63% YoY in Q3 FY26 and contributing approximately 26% to PCH sales, with over 40% of these sales originating from quick commerce platforms.

Here is a financial summary of Piramal Pharma Limited's performance:

Strategic Initiatives and Future Outlook

Despite the challenging quarter, Piramal Pharma is actively pursuing several strategic initiatives to strengthen its core businesses and drive future growth. In the CDMO segment, the company is investing US$90 million to expand its Lexington and Riverview facilities. This investment is aimed at scaling sterile injectable and payload-linker capacities, with an expected increase in output from 104 to over 240 batches annually. This expansion is well-timed to capitalize on the increasing customer interest in North America sites and the trend towards onshoring.

For the CHG business, a significant development was the agreement to acquire Kenalog® from Bristol-Myers Squibb. This acquisition, an all-cash deal with an upfront consideration of US$35 million and potential contingent consideration of up to US$65 million, is expected to broaden Piramal Pharma's CHG portfolio, add revenues without significant incremental cost, and expand its presence in key markets like the US, Europe, and Asia Pacific. Kenalog®, a branded commercial injectable, is anticipated to generate EBITDA margins in-line with existing CHG business margins, given its niche and complex manufacturing requirements.

In Piramal Consumer Healthcare, the focus remains on investing in power brands, expanding reach into Tier 3/4 towns and modern trade, and optimizing the portfolio and distribution channel mix for better profitability. These efforts are expected to sustain the strong growth momentum observed in the segment.

Here is a segment comparison of Piramal Pharma Limited's revenue:

Nandini Piramal, Chairperson, acknowledged that FY26 has been a muted year but expressed confidence in the long-term growth prospects of the businesses. She highlighted the early signs of recovery, particularly the pick-up in RFPs and order inflows since October 2025, driven by improved biopharma funding and increased M&A activities in the US healthcare space. The management anticipates Q4 to be historically the strongest quarter for the company, a trend they expect to continue this year. These initiatives, combined with improving macro-economic conditions, are expected to drive a turnaround performance in the quarters ahead.

Commitment to Quality and Sustainability

Piramal Pharma continues to demonstrate a strong commitment to quality and sustainability. The company maintained a 'Zero OAI' (Official Action Indicated) status from the US FDA, successfully clearing 30 regulatory inspections, including two USFDA inspections, in 9M FY26. This track record underscores its robust quality management systems. On the sustainability front, Piramal Pharma has an SBTi-approved decarbonization roadmap, targeting a 42% reduction in absolute Scope 1 & 2 emissions and a 25% reduction in Scope 3 emissions by FY2030 (baseline FY2022). The company also reported significant achievements in responsible operations, including zero hazardous waste to landfill, 2.10 lakh kiloliters of freshwater saved, and 14.08% of total energy sourced from bio-briquettes/biomass.

In conclusion, while Piramal Pharma Limited navigated a challenging Q3 and 9M FY26 marked by revenue and profitability pressures, the company's strategic investments, targeted acquisitions, and strong performance in its consumer healthcare segment signal a resilient approach. With early signs of recovery in key markets and a steadfast commitment to quality and sustainability, Piramal Pharma is positioning itself for a strategic turnaround and sustained growth in the coming quarters.