1. Opening Hook
If resilience had a flavor, Piramal Pharma just served a half-cooked one — slow orders, slower optimism, and a spoonful of guidance moderation. Nandini Piramal’s calm voice masked the fact that the CDMO engine is coughing on customer destocking fumes. Yet, management insists “FY30 is still sacred.” Ah yes, faith can move molecules, if not margins.
As theBhagavad Gitareminds us — “You have the right to perform your duty, but not to the fruits thereof.” Piramal surely took that literally this quarter. Stick around; things get spicier when the analysts start poking.
2. At a Glance
- Revenue ₹2,044 Cr (↓ YoY)– Customer destocking called the shots; demand ghosted.
- EBITDA Margin 11%– Leaner than expected; optimization only cushioned the fall.
- Net Debt ₹3,971 Cr– Debt diet working; down ₹228 Cr via working-capital yoga.
- CDMO Revenue ₹1,044 Cr– Hit by large order pause; prayers sent to FY27.
- Consumer Healthcare +15%– Lacto Calamine glowing brighter than EBITDA.
- Full-year Guidance Flat– “Flat” is the new “steady” when patience is the strategy.
3. Management’s Key Commentary
“Revenue declined due to inventory destocking from one large CDMO customer.”(Translation: One customer sneezed, and we caught the fiscal flu 😷.)
“EBITDA margin moderated to 11%—cost control partly mitigated the hit.”(They trimmed fat but still lost muscle.)
“We reduced net debt by ₹228 Cr; balance sheet remains disciplined.”(When growth hides, the CFO shows up with scissors.)
“We’ve seen uptick in biopharma funding and M&A; early signs of recovery.”(Translation: Hope is not a metric, but we’ll take it.)
“We are investing $90M in ADCelerate program across Lexington and Riverview.”(The future is expensive but photogenic.)
“Consumer Healthcare grew 15%, with e-commerce now 24% of sales.”(Apparently, Lacto Calamine sells faster online than CDMO contracts offline 🧴.)
“FY30 goal of $2B revenue and 25% margin remains intact.”(Because every pharma story needs a messiah year.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹2,044 Cr | ₹2,312 Cr | ↓12% | CDMO slowdown killed the vibe |
| EBITDA Margin | 11% | 14% | ↓300 bps | Optimization ≠ Miracle |
| Net Debt | ₹3,971 Cr | ₹4,199 Cr | ↓₹228 Cr | Cost yoga working |
| CDMO Revenue | ₹1,044 Cr | ₹1,260 Cr | ↓17% | One large order vanished |
| Consumer Healthcare | ₹540 Cr | ₹470 Cr | ↑15% | Calamine wins, chemistry limps |
| CHG Segment Share | 45% U.S. Sevoflurane | 44% | ↑1% | Crown still secure |
💊Commentary:Cash discipline is doing the heavy lifting while CDMO snoozes. H2 promises better times — like that friend who always says “next week I’ll start the gym.”
5. Analyst Questions
Q:When does the big CDMO order come back?A:“When they burn through inventory.”(Basically, whenever that client finishes spring cleaning.)
Q:U.S. reshoring impact?A:“Gradual shift, not wholesale.”(Translation: Margin in theory, patience in practice.)
Q:Overseas losses?A:“Suboptimal utilization; H2 will fix it.”(Classic CFO optimism template.)
Q:FY30 target intact?A:“Yes.”(The gospel according to PowerPoint.)
6. Guidance & Outlook
Management trimmed FY26 guidance — now expectingflat revenueandEBITDA in
