Piramal Pharma (PPLPHARMA) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 began with strong momentum, with all three business segments achieving mid-to-high teen revenue growth and significant EBITDA margin expansion year-over-year.

• CDMO segment saw broad-based performance in India and overseas, supported by favorable industry trends and enhanced commercial execution.

• Complex Hospital Generics maintained US leadership in inhalation anesthesia and intrathecal therapies, with ex-US traction and Kenalog integration progressing.

• Consumer Healthcare delivered robust mid-teen growth, driven by Power Brands and e-commerce expansion, with continued focus on profitability.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

Financial highlights

• Revenue from operations grew 17% year-over-year to INR 2,270 crore in Q1 FY27.

• EBITDA increased 72% year-over-year to INR 285 crore, with margin expanding by 400 bps to 12.5%.

• CDMO revenue up 19% YoY to INR 1,187 crore; CHG up 17% YoY to INR 743 crore; PCH up 15% YoY to INR 347 crore.

• Consolidated net loss after tax for Q1 FY27 was INR 69.39 crore, compared to a loss of INR 81.70 crore in Q1 FY26.

• Gross margin blended average is about 64%-65%, with overseas facilities typically above 75% and India at 55%-65%.

Outlook and guidance

• Annual revenue and margin guidance remain unchanged despite a strong Q1; management will revisit guidance after Q2.

• Sustained revenue growth and margin expansion are expected for FY27, with a focus on operational excellence and selective investments.

• Targeting EBITDA margins of 25% by FY 2030, mainly driven by CDMO margin expansion as overseas utilization improves.

• Kenalog supplies to commence from Q2 FY27, supporting further CHG growth.

• Tax rate will remain elevated in FY27 but is expected to normalize to 24%-25% as overseas operations scale.