Piramal Pharma Reports Q1 FY25 Results and Market Outlook

On July 26, 2024, Piramal Pharma Limited announced its unaudited financial results (both standalone and consolidated) for the quarter ending June 30, 2024.

Key Highlights for Q1 FY25

In the first quarter of FY25, Piramal Pharma saw a 12% year-over-year increase in revenue from operations, primarily due to strong growth in the CDMO sector and steady double-digit growth in the ICH sector. EBITDA rose by 31% compared to the previous year, reaching an EBITDA margin of 11%, which is over 170 basis points higher than Q1 FY24. This improvement was attributed to better operating leverage, cost optimisation efforts, and an enhanced revenue mix.

Piramal Pharma also maintained its high-quality standards, successfully completing USFDA inspections at the Lexington facility with an Establishment Inspection Report (EIR) and at the PPDS Analytical Services facility in India with zero observations. Additionally, Piramal Pharma was recognised as one of the top sustainable organisations in the 3rd edition of the Times Now Global Sustainability Alliance Sustainable Organizations 2024.

Market Outlook and Performance Update

There are early signs of improvement in biotech funding, although more consistent performance over the next few quarters is needed to confirm a full recovery. Regulatory changes, supply chain diversification, and a growing customer preference for integrated services are expected to create medium- to long-term opportunities. To capitalise on these, the company is investing in capital expenditures and adopting a customer-centric approach to enhance cross-selling opportunities across its global sites.

Order inflows remain strong, supported by targeted business development efforts that have led to a steady stream of new orders, particularly for the commercial manufacturing of on-patent molecules. Piramal Pharma is also experiencing increased customer inquiries and visits, with a notable year-over-year growth in the generic API business.

The improvement in EBITDA margin is driven by a strong contribution from innovation-related work and differentiated offerings, alongside ongoing cost optimisation and operational excellence initiatives.

About Piramal Pharma Ltd

Piramal Pharma Limited (PPL) is part of the Piramal group and operates in three main areas: Contract Development and Manufacturing Organizations (CDMO), Complex Hospital Generics (Critical Care), and Consumer Healthcare (OTC).

On July 26, 2024, Piramal Pharma Ltd’s share price opened at ₹168.20, touching the high of ₹172.10 as of 01:44 PM on the NSE.

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