1. At a Glance

Welcome to the Piramal Pharma circus — where billion-dollar ambitions meet single-digit returns and every quarter ends with investors whispering,“ab kuch toh hoga.”For Q2FY26, the company clocked ₹2,044 crore in consolidated revenue and reported a ₹99.2 crore loss, showing us that consistency is indeed a virtue — even when it comes to red ink. Operating profit margin crashed to 8% (from 20% just two quarters ago), making one wonder if EBITDA now stands forEarnings Before Investors Die of Anxiety.

At ₹200 per share, Piramal Pharma boasts a ₹26,641 crore market cap — a price tag that says “hope” louder than actual profit numbers. ROCE at 6.45% and ROE barely scratching 1.11% are the corporate equivalent of“main kar lunga, dekh lena.”The company trades at a price-to-book of 3.3x and has debt worth ₹4,851 crore, which is manageable — unless, of course, you expected a pharma company to actually make money this quarter.

Still, with its empire spanning Contract Manufacturing, Complex Generics, and Consumer OTC brands (from Lacto Calamine to Tetmosol), Piramal Pharma isn’t just selling drugs — it’s selling dreams. The question is: who’s buying?

2. Introduction

Once upon a time, in 1988, Piramal Pharma began its pharma journey with the acquisition of Nicholas Laboratories. What followed was a series of M&As that made it sound like the Ambani of APIs — only to later sell its domestic formulations business to Abbott for a jaw-dropping $3.7 billion in 2010. Since then, it’s been rebuilding its empire, molecule by molecule, under the spiritual guidance of“Hum honge kamyab ek din.”

Today, it’s part of the larger Piramal Group, operating across three bold (and occasionally profitable) fronts — CDMO (Contract Development and Manufacturing Organization), Complex Hospital Generics (read: medicines that sound fancier than your college GPA), and Consumer Healthcare (your good ol’ Lacto Calamine and Polycrol for those post-biryani regrets).

But while its products cure headaches, its quarterly resultscausethem.

Q2FY26 continued the saga — revenue dipped 8.8% QoQ, PAT turned negative again, and EPS sulked at -₹0.75. Yet, the company insists it’s all part of a global transformation journey. Because in India Inc, every loss is just “strategic investment” in disguise.

So strap in — we’re diving deep into Piramal Pharma’s empire of complexity, cosmetics, and calculated chaos.

3. Business Model – WTF Do They Even Do?

Piramal Pharma operates in three distinct worlds that sound simple until you try to explain them at a family gathering:

1. CDMO (Contract Development & Manufacturing Organization)Think of it as the “TCS of pharma manufacturing.” Other companies come with their ideas, and Piramal makes the drugs — for a fee, of course. With 15 sites (9 in India, 4 in North America, and 2 in Europe), Piramal has positioned itself as one of India’s top 3 CDMO players. It serves ~500 customers globally and earns 84% of its revenue from highly regulated markets like the US, Europe, and Japan. Services include commercial manufacturing (70%), development (26%), and discovery (4%). The company proudly notes that 40% of its new orders in FY24 were integrated projects — translation: they’ve convinced clients to stay longer.
2. Complex Hospital Generics (CHG)These are your critical care and anesthesia drugs — the kind hospitals buy in bulk because, well, surgeries need anesthesia. Piramal’s products like Sevoflurane and Desflurane make it the world’s 4th largest player in inhalation anesthesia.With manufacturing in Dahej, Digwal, and Bethlehem (USA), it serves 6,000+ hospital customers. 70% of CHG revenue comes from regulated markets, proving that pain relief sells better abroad than at home.
3. India Consumer Healthcare (ICH)The fun, Bollywood-infused side of the business. Brands likeLacto Calamine (Amyra Dastur),Little’s (Kareena Kapoor), andTetmosol (Ajay Devgan)are household names. From ₹100 crore sales in 2008 to ₹1,000 crore in FY24, the ICH arm shows how desi marketing and celebrity endorsements can outshine complex molecules any day. With 180,000 retail customers and 150 new launches in three years, this segment is like the family’s overachieving cousin — still small in size but getting all the attention.

Revenue Split FY24:CDMO – 58%, CHG