Piramal Pharma Q1 net loss narrows to Rs 89 crore

The pharmaceutical company's consolidated net loss contracted to Rs 88.64 crore in Q1 FY25 as against Rs 98.58 crore posted in Q1 FY24.

Revenue from operations grew by 11.57% year on year (YoY) to Rs 1,951.14 crore during the quarter, driven by robust high-teen growth in the CDMO business and steady double-digit growth in the ICH business.

The company's revenue from contract development and manufacturing organization (CDMO) was at Rs 1,057 crore (up 18% YoY), complex hospital generics (CHG) stood at Rs 631 crore (up 2% YoY) and India consumer healthcare (ICH) came in at Rs 264 crore (up 10% YoY) during the period under review.

The drug maker posted a pre-tax loss of Rs 45.08 crore in Q1 FY25 as compared with pre-tax loss of Rs 107.11 crore recorded in same quarter last year.

EBITDA grew 31% YoY to Rs 224 crore with EBITDA margin of 11%, a YoY improvement of over 170bps, driven by operating leverage, cost optimization measures and superior revenue mix.

Nandini Piramal, chairperson of Piramal Pharma, said, We delivered a healthy revenue growth accompanied by over 170bps YoY expansion in EBIDTA margin driven by favorable revenue mix and cost optimization initiatives. Our CDMO business continues to witness sustained order inflows, especially for on-patent commercial manufacturing. We are also seeing good demand for our differentiated offerings with increase in customer enquiries and visits.

In our CHG business, our planned expansion for inhalation anesthesia portfolio is on track and is expected to get commercialized in FY26. Our India Consumer Healthcare business is also delivering steady growth driven by power brands and strong traction in e-commerce channel.

As a responsible organisation, we are taking good strides in our journey towards building sustainable operations. Our continuous efforts in quality and compliance bore fruits with successful closure of USFDA inspections at two of our facilities at Lexington (USA) and PPDS (Analytical Services, India).

Historically our H2 outperforms H1, both in terms of revenue and profitability, and we expect this trend to continue in FY25. We intend to further build on to the good start that we have had to the financial year.

Piramal Pharma (PPL) offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 17 global facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated Contract Development and Manufacturing Organization; Piramal Critical Care (PCC), a Complex Hospital Generics business; and the India Consumer Healthcare business, selling over-the-counter products.

The scrip declined 0.66% to Rs 165.15 on the BSE.

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