The shares of the healthcare solution provider gained up to 15 percent after the company’s net profit magnified multifold times by 360 percent YoY and 128 percent QoQ in Q2FY24.
Piramal Pharma Ltd has a market capitalization of Rs 32,818.89 crore, the shares were trading at Rs 247.55 per share, increasing around 14 percent as compared to the previous closing price of Rs 216.70 apiece.
Reason for rise:-
Today, the company shares have seen bullish movement after Piramal Pharma Ltd announced Q2 results in which revenue zoomed by 17 percent on year on year basis from Rs 1,911 crore in Q2FY24 to Rs 2,242 crore in Q2FY25, however in Quarter on a Quarter basis revenue increased by 15 percent from Rs 1,951 crore in Q1FY25 to Rs 2,242 crore Q2Y25.
Moreover, net profit is magnified drastically by 360 percent on a yearly basis from Rs 5 crore in Q2FY24 to Rs 23 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit jumped multifold times by 128 percent from Rs (83) crore in Q1FY25 to Rs 23 crore in Q2FY25.
Segment performance:-
The company’s CDMO business reported 18% year-on-year growth, while India Consumer Healthcare experienced steady double-digit growth. EBITDA increased by 31%, with margins rising to 11%. Additionally, the net debt-to-EBITDA ratio improved to 2.8x, reflecting effective debt management compared to previous quarters.
The CDMO segment is experiencing robust year-on-year revenue growth, driven by steady order inflows for commercial manufacturing of on-patent molecules. Innovation-related work now contributes 50% of CDMO revenues, and early signs of biotech funding recovery are emerging, with increased inquiries for differentiated offerings.
In the Complex Hospital Generics (CHG) segment, demand for sevoflurane and isoflurane remains strong in the U.S. and emerging markets, despite lower U.S. prices. The company is on track to expand sevoflurane manufacturing and increase KSM capacity at the Dahej site, while maintaining a 70% market share in the U.S. Intrathecal Baclofen market.+
Future outlook:-
Management reaffirms guidance for early teens year-on-year revenue growth and absolute EBITDA for FY ’25. They are optimistic about market opportunities across all business lines, focusing on investments in people, capabilities, and capacity while maintaining profitability and a best-in-class quality track record with sustainability integration.
New developments:-
The company is investing in R&D and enhancing in-house product development capabilities to create a pipeline of limited-competition specialty products. Additionally, it is exploring new
in-licensing deals to introduce differentiated products into the market, further strengthening its competitive position.
Management’s Confidence:-
Management recognizes challenges from ongoing supply chain rebalancing and rising customer audits. However, they remain confident in managing cash flows to support growth in the CDMO, CHG, and India Consumer Healthcare segments. Debt management is prioritized, with no immediate need for external funding in the consumer products business.
Company profile:-
Piramal Pharma Limited is an India-based pharmaceutical company, which offers a portfolio of differentiated pharma products across a domestic and global distribution network. The Company has approximately 17 global facilities and a global distribution network in over 100 countries.
Written by:- Abhishek Singh
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