At a Glance
Piramal Pharma (PPL) just dropped its Q1 FY26 results and, surprise surprise, it’s another episode of “Losses, Loans & Lifelines.” Revenue clocked at ₹1,934 crore, EBITDA margin limped at 9%, and a consolidated loss of ₹82 crore slapped investors harder than the FDA’s inspection reports. But hey, there’s a USFDA clearance and a $90M US expansion in the works – because why not burn cash in style?
Introduction
PPL, the darling child of the Piramal empire, continues to juggle between its CDMO dreams, hospital generics hustle, and OTC adventures. Once upon a time (2010), they sold their domestic formulations to Abbott for a sweet $3.7 billion. Fast forward to 2025, they’re still trying to recreate that magic but ending up with EBITDA margins that could barely buy popcorn.
Business Model (WTF Do They Even Do?)
Think of PPL as a three-headed pharma creature:
- CDMO (Contract Development & Manufacturing Operations) – The cash cow, or at least a calf. 15 sites globally, top 3 in India, and 13th globally.
- Complex Hospital Generics – Critical care drugs, aka the ICU rescue rangers.
- Consumer Healthcare – OTC brands that you see on shelves while buying toothpaste.
Revenue split? Half from commercial manufacturing, 20% from on-patent stuff, 26% from development, and a modest 4% from discovery. Oh, and 84% of revenue comes from heavily regulated markets – because they like playing with fire.
Financials Overview
- Revenue (Q1 FY26): ₹1,934 Cr (YoY flat)
- EBITDA: ₹174 Cr (9% margin – hello single digits)
- PAT: -₹82 Cr (consolidated), ₹113 Cr (standalone, thanks to exceptional income ₹20.7 Cr)
- P/E: A jaw-dropping 315 (market thinks this is Tesla)
- ROE: 1.1% – almost invisible
- Debt: ₹4,856 Cr – still hugging leverage like a long-lost friend
Translation: Growth is crawling while losses and debt play hopscotch.
Valuation – DCF vs Market Circus
- P/E based valuation: With P/E 315, fair value screams below ₹120.
- EV/EBITDA: Assuming 12x EV/EBITDA on FY26 est. EBITDA, fair value ~₹150.
- DCF (assuming aggressive growth): ₹220–₹230.
Market price ₹204. Conclusion? Either investors are eternal optimists or have stockholmed themselves.
What’s Cooking – News, Triggers, Drama
- USFDA clearance – Big win, no Form 483 horror this time.
- $90M US facility expansion – because why not spend when losses are trending?
- Stock options granted – 2,020,507 ESOPs at ₹10. Employees better pray for a rally.
- FIIs are bailing – holdings dropped from 41% to 30% in a year.
Balance Sheet
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Assets | 14,303 | 15,083 | 15,429 |
| Liabilities | 14,303 | 15,083 | 15,429 |
| Net Worth | 5,766 | 6,588 | 6,801 |
| Borrowings | 5,637 | 4,710 | 4,856 |
Commentary: Debt still high, net worth crawling, assets static – not exactly a flex.
Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 484 | 1,005 | 892 |
| Investing | -1,334 | -416 | -488 |
| Financing | 818 | -422 | -441 |
Cash flow from ops is decent but eaten by capex. Financing negative – repaying debt slowly.
Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE (%) | -0.3 | 0.1 | 1.1 |
| ROCE (%) | 2 | 5 | 6 |
| P/E | NA | NA | 315 |
| PAT Margin (%) | -2.6 | 0.2 | 1.0 |
| D/E | 1.0 | 0.7 | 0.7 |
Verdict: Stressy. Only ROE improved – from negative to barely positive.
P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 7,082 | 8,171 | 9,151 |
| EBITDA | 629 | 1,197 | 1,445 |
| PAT | -186 | 18 | 91 |
Commentary: Revenue grows, EBITDA improves, but PAT still jokes around.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Sun Pharma | 52,578 | 11,454 | 35.7 |
| Cipla | 27,811 | 5,379 | 23.6 |
| Dr. Reddy’s | 33,520 | 5,657 | 19.0 |
| Piramal Pharma | 9,134 | 98 | 315 |
Commentary: Peers are printing profits; PPL is printing losses.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: ~35% (stable).
- FIIs: Down to 30% from 41%.
- DIIs: Rising to 14% – maybe they see hope?
- Public: 19% – retail bagholders unite.
- Promoter Ajay Piramal – seasoned businessman, still fighting to turn this ship.
EduInvesting Verdict™
Piramal Pharma is like that friend who promises to quit smoking every New Year – hopeful but disappointing. Q1 FY26 showed resilience in revenue but bled profits. USFDA nods and capex are positive, but debt, low margins, and insane valuations keep it risky.
“A pharma drama with too many plot twists – watch, don’t binge.”
Written by EduInvesting Team | 29 July 2025
SEO Tags: Piramal Pharma, Q1 FY26 Results, Pharma Stocks, Ajay Piramal, CDMO, USFDA Clearance
