Piramal Pharma’s loss narrows to Rs82 crore in June quarter

The Mumbai-based agency plans to spend $100-125 million in 2025 on capability enlargement. “…however even to succeed in our 2029-30 targets, we should proceed to spend on capex…clearly, there may be upkeep and compliance capex, however we’ll proceed to spend on de-bottlenecking and growing capacities the place wanted,” Piramal mentioned.

The corporate on Monday reported a 1% year-on-year decline in its June-quarter income at ₹1,934 crore, lacking the Bloomberg estimate of ₹2,047 crore primarily based on a ballot of seven brokerages.

Its Ebitda fell 26% to ₹165 crore, with Ebitda margin contracting to 9% in comparison with 11% in Q1FY25. Ebitda is brief for earnings earlier than curiosity, taxes, depreciation, and amortization.

Its web loss stood at ₹82 crore, down 8% on-year.

The Saridon maker mentioned the income was impacted by the destocking of one in all its largest CDMO (Contract Improvement and Manufacturing Group) merchandise. It anticipated 2025-26 progress to stay muted because of this and funding uncertainty for biotechs within the US.

“What we’re fairly happy at is that when you take away the de-stocking occasion, we have grown at mid-teens, and we have additionally seen a extra balanced progress in our abroad websites,” Piramal mentioned, including that the second half of the fiscal yr is predicted to be stronger.

In an earlier dialog, Piramal had instructed Mint that the corporate anticipated mid-single-digit income progress, mid-teens Ebitda progress, and an enchancment in profitability in 2025-26. The agency anticipated a restoration in 2026-27.

CDMO ramp-up

Within the first three months of 2025-26, Piramal Pharma expanded two of its US amenities, Lexington, Kentucky, and Riverview, Michigan, for which it had beforehand introduced a $90 million funding.

The corporate has 15 international CDMO amenities, with 4 in North America, two within the UK and 9 in India.

Piramal’s give attention to capability enlargement comes as curiosity in Indian CDMOs, particularly these with area of interest and differentiated capabilities, grows.

As international pharma innovators and biotechs have a look at derisking their operations and shifting provide chains away from China, Indian companies are poised to seize a big share of this profitable enterprise.

Whereas corporations, together with Piramal, have seen a rise in requests for proposals (RFPs), indicating rising curiosity, the swap to precise purchasers remains to be gradual.

Piramal instructed Mint earlier that clients had been pausing decision-making. Home components within the US, like tax and rates of interest and FDA funding cuts, had been additionally slowing down biotech restoration.

Export-focused CDMO friends comparable to Divi’s Laboratories, Sai Life Sciences, and Syngene Worldwide are additionally aggressively ramping up capacities.

Piramal is banking on its differentiated choices for progress. Its Lexington and Riverview expansions will play a significant position within the growth and manufacturing of antibody-drug conjugates (ADC).

ADCs are a kind of most cancers remedy designed to ship chemotherapy on to cells, and have seen large curiosity from innovators over the previous couple of years.

Piramal’s differentiated merchandise, together with ADCs, sterile fill end, payload hyperlink, high-potent APIs, and on-patent industrial product growth, have been rising sooner than the remainder of the enterprise, and “would be the driver going ahead”, mentioned Piramal.

The corporate is just not exploring inorganic progress for its CDMO enterprise but.

“We’d do licensing and model acquisitions within the complicated hospital generics enterprise or the patron healthcare enterprise. I believe these are the almost definitely candidates for acquisitions quite than extra amenities and new capabilities,” mentioned Piramal.

Piramal Pharma’s inventory worth dipped over 3% to ₹196.8 per share on Tuesday morning on Nationwide Inventory Change earlier than settling at ₹206.03, up 0.82% at market shut.