The company described FY26 as a transitional year, with consolidated revenue declining 3 per cent to ₹8,869 crore and Ebitda falling 28 per cent amid lower CDMO demand and operating deleverage. An impairment charge further weighed on profitability, pushing the company into a net loss for the year. However, Piramal indicated that business momentum has improved meaningfully in the second half, supported by a sharp rebound in global biotech funding, up about 80 per cent, which has translated into stronger request for proposal (RFP) activity and order inflows.
While the CDMO segment saw a 10 per cent decline in FY26, the company expects growth to resume across all its business verticals, even as a large destocked product is unlikely to return in the near term. “We are exiting FY26 with stronger momentum,” Piramal said, adding that a more diversified order book and an improving development pipeline should underpin growth.
A key trigger for FY27 will be the contribution from the recently acquired product portfolio from Bristol Myers Squibb, which is expected to start generating revenue from the second quarter. The company also highlighted that its fixed-cost-heavy structure would amplify earnings recovery, with incremental revenue expected to flow through to Ebitda and net profit.
Beyond demand recovery, Piramal Pharma sees structural tailwinds from shifting global supply chains. Increasing onshoring and nearshoring trends, particularly in the US amid geopolitical and tariff uncertainties, are expected to benefit the company, given its manufacturing presence in the US and the UK.
Additionally, the company’s consumer healthcare and hospital generics segments continued to provide stability during FY26, with steady growth driven by power brands, premiumisation, and expanding ecommerce channels. The company also maintained a strong quality and compliance track record, completing multiple regulatory and customer audits, which strengthens its positioning in the competitive CDMO space.
The company also believes that ongoing investments in capacity expansion, including sterile injectables and advanced manufacturing capabilities, are beginning to see customer interest and are expected to support future growth. With improving demand visibility, rising order inflows, and operational efficiencies kicking in, Piramal Pharma expects margin recovery to accelerate alongside revenue growth in FY27.
Source link
#Piramal #Pharma #bets #FY27 #rebound #expects #midteens #growth #margin #gains
