Orchid Pharma (ORCHPHARMA) Q4 25/26 earnings summary

Executive summary

• FY 2026 was challenging for the global antibiotic industry, with pricing and volume pressures, but marked strategic progress including the reacquisition of enmetazobactam and advancement toward an integrated anti-infective platform.

• Positioned as a leading integrated anti-infective platform with 30 years of cephalosporin expertise and India's only novel antibiotic, EXBLIFEP.

• The company is entering a new phase focused on platform creation, innovation, and operational efficiency, with significant investments in R&D and manufacturing capabilities.

• Standalone and consolidated profits declined year-over-year, with total income and EPS also lower.

• The company completed the acquisition of 100% assets of Allecra Therapeutics GmbH and SAS, consolidating global rights to Enmetazobactam.

Financial highlights

• FY26 standalone revenue was ₹811 crore, down from ₹922 crore in FY25; EBITDA was ₹101 crore, down from ₹155 crore; PAT was ₹45 crore, down from ₹106 crore.

• Q4 FY26 standalone revenue was ₹238 crore, stable year-over-year; EBITDA was ₹42.3 crore, up from ₹40 crore in Q4 FY25; PAT rose to ₹30 crore.

• Gross margin declined to 35% in FY26 from 41% in FY25, but recovered in Q4 after prior erosion.

• Standalone EPS for FY26 was ₹8.91, down from ₹20.99 in FY25; consolidated EPS was ₹4.05, down from ₹19.65.

• Dhanuka Laboratories reported FY26 revenue of ₹450 crore, down from ₹500 crore in FY25.

Outlook and guidance

• Early signs of recovery and stabilization in gross margins, though caution remains due to ongoing pricing and geopolitical risks.

• Targeting 10%-15% sales growth and around 12% EBITDA margin for the base business in FY27.

• Focus on expanding into regulated markets, launching 5-6 sterile products in the US by 2030.

• Lifetime sales for enmetazobactam projected at $1–2 billion, with peak sales expected in the fourth or fifth year post-launch.

• Awaiting NCLT order on the amalgamation with Dhanuka Laboratories Limited, which has received all necessary shareholder and creditor approvals.