Orchid Pharma (ORCHPHARMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 sales reached INR 222.7 crores (₹22,269.86 lakhs), with EBITDA at INR 37.5 crores; H1 FY25 sales totaled INR 467.1 crores, up 22% year-over-year, and H1 EBITDA was INR 78.6 crores, up from INR 54.7 crores last year.

• Profit before tax and profit after tax both rose 26% year-over-year in Q2 FY25; standalone Q2 FY25 net profit was ₹2,562.58 lakhs, consolidated net profit was ₹2,723.65 lakhs.

• Orblicef (Enmetazobactam-Cefepime) launched in India; initial EU sales of Enmetazobactam began, with U.S. commercialization pending.

• Capacity enhancement project commissioned ahead of schedule; groundwork for 7-ACA project started.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with review by statutory auditors and a modified conclusion noted.

Financial highlights

• H1 FY25 sales grew 22% year-over-year to INR 467.1 crores.

• H1 FY25 EBITDA rose to INR 78.6 crores from INR 54.7 crores last year; operating EBITDA up 39% year-over-year to INR 66.8 crores.

• Q2 FY25 EBITDA margin improved to 17% of sales from 16% in Q2 FY24; gross margin for Q2 FY25 was 39.7%.

• Standalone Q2 FY25 net profit: ₹2,562.58 lakhs; H1 FY25 net profit: ₹5,472.84 lakhs.

• Interest expenses decreased by 13% year-over-year in Q2 FY25; depreciation increased by 10%.

Outlook and guidance

• Management optimistic about future growth, driven by new launches, capacity expansion, and ongoing R&D in cephalosporins and fermentation-based drug development.

• No need for further CapEx in the next couple of years; current capacity sufficient for projected growth.

• Company is progressing with amalgamation of its holding company, Dhanuka Laboratories, with all regulatory no-objection letters obtained.