Piramal Pharma Ltd is beginning to see early indicators of a restoration in its contract manufacturing enterprise, with order inflows choosing up on the again of improved biopharma funding and elevated dealmaking exercise within the US providing some reduction at the same time as the corporate appears at a muted FY26.
“We’re seeing early indicators of restoration. We have seen a pickup in RFPs (requests for proposal) and order inflows, and we’re not altering our FY26 steering,” chairperson Nandini Piramal stated at a press convention on Thursday.
The corporate posted its outcomes for the third quarter of FY26 late Wednesday, with its income down 3% year-on-year to ₹2,140 crore, and a lack of ₹136 crore from a web revenue of ₹4 crore in Q3FY25. Its ebitda margin shrank from 16% a yr in the past to 11% within the reporting quarter.
The corporate had earlier guided for a mid-single digit income development with the ebitda margin for FY26 pegged at excessive teenagers. Piramalnonetheless, exuded optimism over This autumn—traditionally, its strongest quarter—and stated she expects sequential development. Nonetheless, “year-on-year, it will likely be troublesome as a result of This autumn final yr had a number of massive merchandise,” Piramal stated.
CDMO drag
Piramal Pharma’s efficiency this fiscal has been slowed down by stock destocking in certainly one of its massive on-patent business merchandise, affecting its CDMO enterprise—its largest development driver. In Q3, income from its CDMO enterprise fell 9% year-on-year to ₹1,166 crore. Sluggish order flows additionally affected the enterprise.
“Internally, we have now seen RFPs are up, however these will nonetheless take time to transform… that translation to orders will take six months,” stated Piramal stated including that the corporate is targeted on constructing scale and broadening its product portfolio and prospects to derisk the enterprise.
The corporate introduced on Wednesday that it had acquired Kenalog, a business injectable product from Bristol Myers Squibb for an upfront consideration of $35 million, and contingent consideration of as much as $65 million.
“We count on annualized gross sales of $30-40 million,” stated Piramal. “It’s a product that has restricted competitors and we count on that it’s going to add incremental income with out a number of incremental price to the enterprise. It’s a advanced and hard-to-manufacture product… As a part of our technique to broaden our base, we’re creating our personal licensing in addition to buying merchandise.”
The product will bolster the Piramal’s advanced hospital generics enterprise. The enterprise grew 2% in Q3FY26 to ₹668 crore.
In the meantime, its shopper healthcare enterprise noticed a sturdy development of 20% to ₹334 crore in the course of the quarter.
With the corporate reaffirming its FY26 earnings steering, Piramal Pharma’s inventory worth was up 3.7% at ₹159.70 at 12.51 pm on the Nationwide Inventory Change.