Piramal Pharma (PPLPHARMA) Q4 25/26 earnings summary

Executive summary

• FY 2026 was a transitional year with external headwinds, including macroeconomic uncertainties, subdued biopharma funding in H1, inventory destocking, and increased competition in inhalation anesthesia outside the U.S., but momentum improved across all business segments by year-end.

• Recovery in biopharma funding since September 2025 led to increased RFPs and order inflows in the CDMO segment, with significant progress in H2.

• Strategic actions included expanding the CDMO commercial team, completing the Kenalog acquisition, ramping up sevoflurane supplies from Digwal, and strong growth in the consumer business.

• Regulatory compliance remained strong, with 38 regulatory inspections (including three U.S. FDA) completed without OAIs and a record 209 customer audits.

• Board approved key appointments, including executive and independent directors, and a new Company Secretary.

Financial highlights

• FY26 consolidated revenue from operations was ₹8,869.08 crore, down 3% year-over-year; Q4FY26 revenue was ₹2,752 crore.

• EBITDA for FY26 was ₹1,135 crore, a 28% decline year-over-year; Q4FY26 EBITDA margin was 18%.

• Net debt to EBITDA at year-end stood at 3.6x, with net debt stable at ₹4,140 crore.

• Exceptional intangible asset write-off/impairment of ₹176 crore in Q4 due to changes in market conditions and reprioritization of CapEx.

• CapEx investment of US$94 million in FY26, with US$90 million expansion at Lexington and Riverview facilities on track.

Outlook and guidance

• Early to mid-teens revenue growth anticipated for FY 2027, with EBITDA and PAT expected to grow faster, supported by operating leverage.

• Revenue expected to be H2 weighted, especially for CDMO, due to order delivery schedules.

• CapEx for FY 2027 projected at INR 120–135 million, mainly for Lexington expansion; Kenalog acquisition costs excluded.

• Tax rates expected to remain elevated, influenced by geographic profit mix, with a long-term target of 24–25%.

• The company continues to monitor regulatory changes, especially regarding new labour codes, and will adjust accounting as needed.