Piramal Pharma Upgrades Annual Growth Guidance After Strong Q2 Performance

Piramal Pharma has raised its annual revenue growth guidance to 19% to 20% following a profitable second quarter. The company reported a net profit of ₹5 crore for the quarter ended September 30, 2026, backed by growth across its CDMO, complex hospital generics, and consumer healthcare segments.

MUMBAI — Piramal Pharma Ltd has raised its annual guidance, driven by expectations of a significantly stronger second half of the fiscal year. Chairperson Nandini Piramal stated that the company is confident in increasing its growth projection from the low-to-mid teens to the upper end of 19 percent to 20 percent.

For the second quarter ended September 30, 2026, the company posted a net profit of ₹5 crore, recovering from a loss of ₹99 crore recorded in the same period last year. Revenue from operations reached ₹2,617 crore, marking a 28 percent increase from ₹2,044 crore year-on-year.

Growth during the quarter was broad-based across all three business segments. The contract development and manufacturing organisation (CDMO) business grew by 28 percent, supported by strong order inflows. Complex hospital generics saw a 24 percent increase, while the consumer healthcare segment grew by 14 percent.

The company also noted improved request for proposal (RFP) activity and order inflows, adding 22 new customers during the period. Its Phase III pipeline for molecules in late-stage clinical trials expanded to 28 from 25 molecules as of March 2026. Additionally, Piramal Pharma completed 110 customer audits and 12 regulatory inspections in the first six months of the year, reporting no Official Action Indicated (OAI) classifications across US FDA inspections.

In the first half of the year, Piramal Pharma delivered a revenue growth of 23 percent, accompanied by an EBITDA margin expansion of over 350 basis points. Leadership attributed this performance to healthy demand, disciplined execution, and improved operating leverage.

Addressing external challenges, Piramal pointed to the broader geopolitical environment, noting an overall increase in inflation and input costs that requires careful balancing. She highlighted an uptick in RFPs and orders in both the US and Indian markets.

Regarding corporate developments, Piramal noted that the company's distribution agreement with Bayer is set to expire in December 2026. The transition is currently being managed jointly to ensure business continuity, with management stating that no material impact is expected on the FY27 guidance.

Following the announcements, Piramal Pharma's stock price rose over 17 percent to trade at ₹233.70 on the BSE.

"Piramal Pharma's decision to revise its annual guidance upward reflects strong operational execution and broad-based demand across its core segments, particularly CDMO and complex hospital generics. Transitioning from a net loss to profitability alongside a margin expansion of over 350 basis points demonstrates the operational leverage inherent in a fixed-cost business model. Managing cost pressures while scaling customer additions and maintaining regulatory compliance will be key to sustaining this momentum through the second half of the fiscal year." — Dr. Shishir Gupta, Founder & CEO, StartupLanes