Piramal Pharma (PPLPHARMA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 12% YoY to ₹1,951 Cr, led by strong CDMO (18% YoY) and double-digit India consumer healthcare growth; EBITDA rose 31% YoY to ₹224 Cr with margin improvement to 11% from 10% in Q1 FY24.

• Net debt-to-EBITDA improved to 2.8x from 5x YoY, reflecting deleveraging and improved cash flows.

• All three business segments—CDMO, CHG, and ICH—delivered positive revenue growth, with CDMO leading at 18% YoY.

• Quality and compliance remained strong, with successful US FDA inspections and no OAI since 2011.

• Sustainability initiatives recognized among top sustainable organizations in India.

Financial highlights

• Q1FY25 revenue: ₹1,951 Cr (up 12% YoY); EBITDA: ₹224 Cr (up 31% YoY); EBITDA margin: 11% (vs 10%).

• PAT loss narrowed to ₹89 Cr from ₹99 Cr YoY; PAT margin improved to -5% from -6%.

• CDMO revenue: ₹1,057 Cr (up 18% YoY); CHG: ₹631 Cr (up 2% YoY); ICH: ₹264 Cr (up 10% YoY).

• E-commerce sales in ICH up 37% YoY, now 19% of ICH sales; power brands in consumer healthcare grew 19% YoY, contributing 48% of segment sales.

• Standalone revenue for Q1 FY25 was ₹1,063.20 crore, up 25.6% YoY.

Outlook and guidance

• FY25 guidance reiterated: early teens YoY growth in revenue and absolute EBITDA, with margin improvement.

• No upgrade to guidance despite strong order book; focus on balancing quarterly performance.

• Medium-term focus on increasing capacity utilization and higher contribution from differentiated offerings.

• Early signs of improvement in biotech funding for CDMO; further quarters needed to confirm recovery.

• Capacity expansion and portfolio development ongoing in CHG and ICH to meet demand and drive growth.