Piramal Pharma Share Price Drops After Q1 Results

Market Performance

Piramal Pharma share price saw a sharp decline on Tuesday, July 29, following its Q1 FY25 financial results.

• The stock was down 3.67%, trading at ₹196.8 per share around 9:20 am.
• The decline reflects weak operational performance and a net loss reported by the company.

Main News

Piramal Pharma reported a net loss of ₹81.7 crore in the June quarter, reversing from a net profit of ₹153.5 crore in the March quarter.

This marks the second consecutive year the company has recorded a Q1 loss. Despite this, the company reiterated its long-term goal of achieving a $2 billion topline and a 25% margin by FY2030.

Company Details

Piramal Pharma Ltd. operates across three primary segments:

• CDMO (Contract Development and Manufacturing Organization)
• Complex Hospital Generics
• Consumer Healthcare

All three segments showed varied performance during Q1 FY25.

Financial Performance Breakdown

Revenue

• ₹1,933.71 crore in Q1 FY25
• Down 1% YoY
• Down ~30% QoQ

EBITDA

• Stood at ₹106.7 crore, down nearly 50% YoY
• QoQ, EBITDA declined by ~86%

EBITDA Margins

• Fell to 5.5%
• Down from 10.5% in Q1 last year
• Down from 26.9% in the March quarter

Net Profits

• Reported net loss of ₹81.7 crore
• Versus net profit of ₹153.5 crore in the previous quarter
• The company had also posted a net loss in the same period last year

Segment-Wise Business Update

CDMO Business

• Revenue: ₹997 crore, down 6% YoY
• Decline due to destocking in one large on-patent commercial product
• Adjusted for this, the company witnessed mid-teen revenue growth at overseas sites

Complex Hospital Generics

• Revenue: ₹637 crore, up 1% YoY
• Slower growth due to phasing of institutional orders

Consumer Healthcare

• Revenue: ₹302 crore, up 15% YoY
• Power brands grew 18%, contributing 49% of total sales

Summary

Piramal Pharma share price fell after the company reported a disappointing Q1 FY25, marked by a net loss of ₹81.7 crore, a steep decline in EBITDA, and falling EBITDA margins.

The company’s CDMO business witnessed a slowdown, while complex generics remained flat. On the other hand, consumer healthcare showed strong growth, especially in power brands.

Despite the operational hurdles, Piramal Pharma remains focused on its long-term growth aspirations.