Piramal Pharma shares jump 15% as it returns to profit in fiscal second quarter
Key Facts
Piramal Pharma shares jumped 15% to 227.40 rupees in trading on October 28 after the company reported a return to profit in the second quarter of fiscal 2027, ended September 30, 2026. Consolidated net profit was 5 crore rupees, compared with a loss of 99 crore rupees in the year-earlier period. Consolidated revenue from operations rose 28% to 2,617 crore rupees from 2,044 crore rupees. The stock rose in a session when the Sensex was down 1.3% at 10:23 a.m., according to Business Standard. In its results filing, the company raised its fiscal 2027 revenue growth forecast to 19%–20%.
Revenue growth was accompanied by a stronger improvement in operating profit: consolidated EBITDA rose 72% year on year to 385 crore rupees from 224 crore rupees. The EBITDA margin widened to 14.7%, compared with 11.0% in the year-earlier quarter. Revenue from operations also increased 15% from the first quarter of fiscal 2027, while EBITDA rose 35% sequentially. In that quarter, the company reported revenue of 2,270 crore rupees and EBITDA of 285 crore rupees, with a margin of 12.5%, and a post-tax loss of 69 crore rupees. The company attributed the improvement in profitability to higher capacity utilisation, operating leverage, execution discipline and continued cost-control initiatives.
Contract development and manufacturing services, known as CDMO, led growth across the businesses in the quarter, with revenue rising 36% to 1,424 crore rupees. Revenue from the complex hospital generics business rose 32% to 849 crore rupees, while consumer healthcare grew 13% to 359 crore rupees. In the first half, CDMO revenue grew 28%, complex hospital generics grew 24% and consumer healthcare grew 14%. The company’s chairwoman said first-half CDMO growth benefited from a strong order pipeline and robust execution. She added that growth in complex hospital generics was linked to sales of inhalation anaesthesia products outside the United States and the integration of the Kenalog product.
The company said it added 22 new customers and hosted 110 customer audits in the first half of fiscal 2027. It also completed 12 regulatory inspections during the same period and said it maintained a record free of “official action indicated” classifications in U.S. Food and Drug Administration inspections. First-half revenue from operations was 4,887 crore rupees, compared with 3,977 crore rupees a year earlier. However, the company continued to report a net loss of 64 crore rupees, compared with a loss of 181 crore rupees after exceptional items in the first half of the previous fiscal year. Net debt stood at 4,859 crore rupees on September 30, up from 4,164 crore rupees on March 31.
Business Standard reported that average trading volume jumped more than 20-fold during the session, with 43.65 million shares traded on the NSE and BSE by 10:23 a.m. The stock had reached a 52-week high of 231.85 rupees on September 8, 2026. ICICI Securities said overall performance was better than expected, citing strong demand for CDMO services in India and at overseas sites, as well as increased tender activity and new order inflows. In its filing, Piramal Pharma said the second half is usually stronger than the first and that it has “a healthy order book and encouraging customer engagement.” The company scheduled an investor and analyst call for October 28, 2026, from 10:00 to 10:45 a.m. India time to discuss its second-quarter and first-half results.