Piramal Pharma Raises FY2027 Revenue Growth Forecast to 19%–20% as Profitability Improves
Key Facts
Piramal Pharma raised its revenue growth forecast for fiscal year 2027 to 19%–20% and said it also expects significantly higher profitability, following strong performance in the second quarter and first half. In its results statement, the company reported that consolidated revenue from operations rose 28% year over year in the second quarter to 2,617 crore rupees, from 2,044 crore rupees in the corresponding period. In the first half, revenue increased 23% to 4,887 crore rupees from 3,977 crore rupees. The revision applies to the fiscal 2027 revenue growth forecast; the company did not announce an increase to its long-term targets. The announcement did not include share-price data that would make it possible to link financial performance to a change in the share price.
Contract development and manufacturing led the growth drivers, with second-quarter revenue up 36% to 1,424 crore rupees and first-half revenue up 28% to 2,611 crore rupees. The company said the business added 22 new clients in the first half, while the number of molecules in its Phase III development pipeline rose to 28 from 25 in March 2026. Revenue from antibody-drug conjugate services also grew 51% in the first half. Innovation-related revenue increased 24%, while revenue from commercial manufacturing of patented drugs rose 39% over the same period. These figures highlight the contribution of development, manufacturing and innovation-related products to the expansion of the revenue base.
Growth also extended to the complex hospital generics business, which posted a 32% increase in second-quarter revenue to 849 crore rupees, compared with 644 crore rupees a year earlier. Consumer healthcare revenue rose 13% to 359 crore rupees from 319 crore rupees in the corresponding period. In the first quarter, the consumer healthcare business's power brands grew 23% and accounted for 53% of its sales. E-commerce revenue increased 40%, representing 28% of its sales in that quarter. The results indicate growth across all three business units, with contract development and manufacturing recording the fastest second-quarter increase among the units for which the company provided data.
Second-quarter earnings before interest, tax, depreciation and amortization rose 72% to 385 crore rupees from 224 crore rupees a year earlier, and the margin widened to 14.7% from 11.0%. The company attributed the improvement to higher capacity utilization and operating leverage, alongside disciplined execution and ongoing cost-reduction initiatives. On the bottom line, Piramal Pharma posted a net profit of 5 crore rupees in the second quarter, compared with a loss of 99 crore rupees in the corresponding period. The first quarter recorded a post-tax loss of 69 crore rupees, compared with a loss of 82 crore rupees before exceptional items a year earlier. The second-quarter return to profit puts the improvement in revenue and margin in the broader context of a reduction in the losses recorded in the first quarter.
Chairwoman Nandini Piramal said, "The second half is usually stronger than the first half, and we are well positioned to deliver strong performance for the full year." The company linked its outlook for the rest of the year to what it described as a healthy order book and encouraging customer engagement. This follows the company's report of 23% first-half revenue growth, supporting its new full-year forecast of 19%–20%, while delivery of that forecast remains tied to second-half performance. In its first-quarter results, Piramal said it was looking for sustained revenue growth and an expansion in earnings before interest, tax, depreciation and amortization during fiscal 2027, while adapting to a changing external environment. The company did not specify a separate figure for its earnings growth forecast in that statement.
The company said it completed 12 regulatory inspections and hosted 110 customer audits in the first half. It added that it maintained a record free of "Official Action Indicated" classifications in U.S. Food and Drug Administration inspections. Piramal Pharma is scheduled to hold an investor and analyst call on 28 October 2026, from 10:00 to 10:45 a.m. India time, to discuss its second-quarter and first-half results. The call will give the company an opportunity to present details of its results and fiscal 2027 outlook to investors and analysts. The announced guidance remains revenue growth of 19%–20%, with significantly higher profitability, according to the company statement.