Orchid Pharma (ORCHPHARMA) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 sales were INR 194 crore, down 13% year-over-year but up 13% sequentially from Q1 FY26; H1 FY26 sales declined 22% year-over-year.

• EBITDA for Q2 FY26 was INR 6 crore, down from INR 14 crore in Q1 FY26 and 61% lower year-over-year; margin fell to 8% from 17% in Q2 FY25.

• Net profit after tax (PAT) fell 92% year-over-year in Q2 FY26, but consolidated net profit was ₹1,371.12 lakhs, up from a loss in Q1 FY26.

• Board approved unaudited standalone and consolidated results for Q2 and H1 FY26, with a modified auditor's conclusion.

• Strategic acquisition of global rights to enmetazobactam (Exblifep/Orblicef) completed, expected to drive future revenue and profit.

Financial highlights

• Q2 FY26 sales were ₹194 crore, down from ₹223 crore in Q2 FY25, but up from Q1 FY26.

• Gross margin compressed to 32% from 43% in Q1 FY26 and declined to 38% from 39% year-over-year.

• EBITDA fell to INR 6 crore from INR 14 crore in Q1 FY26; margin dropped to 8% from 17% year-over-year.

• Other income increased 88% year-over-year in Q2 FY26.

• Employee expenses rose 14% year-over-year, while other expenses decreased 7% in Q2 FY26.

Outlook and guidance

• No signs of antibiotics market recovery expected in FY26; persistent volume and price pressure anticipated.

• Focus remains on licensing Exblifep in new geographies, progressing key projects, and maintaining cost discipline.

• AMS division expected to break even by next year, with sales team potentially breaking even by Q4 FY26.

• Royalty and licensing revenue from Exblifep to start reflecting from the December quarter.

• Awaiting NCLT approval for Dhanuka Laboratories Limited amalgamation, with next hearing in November 2025.