Orchid Pharma (ORCHPHARMA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 sales were INR 207 crore, down 5% year-over-year; nine-month sales at INR 574 crore, down 16% year-over-year.

• EBITDA margin for Q3 was 6% versus 17% last year; nine-month EBITDA at INR 58 crore (10% margin) versus INR 115 crore (17% margin) last year.

• Profit before tax (PBT) and profit after tax (PAT) for Q3 FY26 were both INR 7 crore, compared to a loss of INR 6 crore in Q3 FY25.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with limited review by statutory auditors.

• Financial statements prepared in accordance with Ind AS and reviewed by the audit committee and board.

Financial highlights

• Gross margin for the quarter was 31%, significantly lower due to reduced regulated market sales and inventory devaluation.

• Domestic business contributed 20% of revenue, exports 80%; regulated markets accounted for one-fourth of sales this quarter.

• Oral segment saw 12% price erosion and 10% quantity erosion over nine months; sterile segment had 10% quantity drop, value flat.

• Cash on hand at quarter-end was INR 75 crore; working capital limits remain unused.

• Other income increased 10% YoY in Q3 and 62% YoY for 9M FY26; employee expenses rose 5% YoY in Q3 and 8% YoY for 9M FY26.

Outlook and guidance

• Core antibiotic market expected to remain under pressure, but some signs of price recovery observed in January.

• FY26 is a transition year; medium-term outlook supported by differentiated product launches, new geographies, and cost discipline.

• Gross margins expected to improve if regulated market sales recover; non-regulated margins also expected to rise as prices stabilize.

• Guidance for hospital segment: INR 20 crore targeted for FY27; branded formulation business remains small.

• Company continues to monitor the implementation of new Labour Codes and will review estimates and assumptions as rules are notified.