Piramal Pharma third quarter results: Co reports loss as CDMO slowdown hurts sales

Drugmaker Piramal Pharma reported a net loss of Rs 136 crore in the third quarter, compared to a profit of Rs 4 crore a year ago. Revenue for the quarter ended December stood at Rs 2,140 crore, down 3% from the corresponding quarter of the previous fiscal, impacted by decline in Contract Development and Manufacturing Organization (CDMO) business.The company attributed the weak performance to destocking of one major commercial patented product, per customer, and to slower order intake in the first half of FY26 due to an inconsistent recovery in US biopharmaceutical financing. In addition, uncertainties surrounding global trade policy and delays in inhalation anesthesia regulations for ex-US markets from the Digwal facility also impacted revenue growth.

“FY26 was a quiet year for the company due to the impact of destocking and slower order inflows in the first half of FY26 in our CDMO business,” said Nandini Piramal, Chairman, Piramal Pharma.

“However, recently we are seeing early signs of recovery with an increase in RFQs and order inflows due to improved biopharmaceutical financing and increased M&A activity in the US healthcare space. In our CHG business, we are investing in new products and expanding our presence in the ex-US markets,” she added.

“The acquisition of a niche brand like Kenalog, which is synergistic to our current businesses, is an important step in this direction. Our consumer businesses continue to outperform in their representative markets, with robust growth in our powerful brands,” she added.

Despite lower revenues, the impact on EBITDA was partially offset by cost optimization and operational excellence efforts.

Piramal said that despite slower growth in FY26, the company continues to “believe in the long-term growth prospects of our businesses and support them with timely investments in capabilities and capabilities.”