Piramal Pharma’s Nandini Piramal Targets FY30 Milestone Despite Muted FY26 Outlook

Muted FY26 Guidance Amid Global Uncertainty and Biotech Funding Slowdown

Piramal Pharma is bracing for a subdued FY26, marked by low revenue growth and margin pressures, amid global economic uncertainty and a hesitant biotech funding environment. Chairperson Nandini Piramal, in an interview with Moneycontrol on May 15, acknowledged that customers remain in a wait-and-watch mode, especially in the company’s key contract development and manufacturing organization (CDMO) segment, which constituted nearly 60 percent of the company’s Rs 9,151 crore FY25 revenue. She noted that request-for-proposal (RFP) conversions are slow, with most customers reluctant to commit amid tariff volatility and macroeconomic headwinds. The company projects single-digit revenue growth and a slight dip in EBITDA margins for FY26.

Highlights:

• FY26 to be muted due to weak biotech funding and tariff-related caution.

• CDMO segment cautious, with slower RFP-to-contract conversion.

• Revenue growth expected in low single digits, EBITDA margin to dip modestly.

• Customers focused on scenario planning, delaying execution commitments.

FY25 Recovery Sets Stage for Long-Term Growth; FY30 Goals Reaffirmed

Despite the cautious FY26 outlook, Piramal Pharma remains bullish on its long-term trajectory, reaffirming FY30 goals of $2 billion in revenue, a 25% EBITDA margin, and net debt to EBITDA below 1x. FY25 was highlighted as a “good year of recovery”, with the company crossing the $1 billion revenue threshold, reporting a 12% YoY growth, and posting a Rs 91 crore net profit, a swing from the Rs 190 crore loss in FY23. The company also reduced its net debt to EBITDA ratio from 5.6x to 2.7x, reflecting progress in financial de-leveraging. Piramal anticipates that FY27 will see a more pronounced recovery, setting the path for FY30 targets.

Highlights:

• FY30 goals include $2B revenue, 25% EBITDA margin, and net debt/EBITDA <1x.

• FY25 revenue at Rs 9,151 crore, up 12% YoY, EBITDA margin steady at 17%.

• FY25 net profit at Rs 91 crore, reversing previous year’s Rs 190 crore loss.

• Debt ratio reduced to 2.7x, improving financial health ahead of FY30.

CDMO Segment Sees Innovation-Led Growth, Driven by On-Patent Manufacturing

The CDMO segment continues to be Piramal Pharma’s primary growth driver, generating Rs 5,447 crore in FY25 revenue, a 15% increase YoY. A notable shift is underway in the composition of CDMO revenues, with 54% now coming from innovation-related services, up from 50% in FY24. A major contributor is the on-patent commercial manufacturing business, which saw over a 50% surge to $179 million. This shift toward differentiated and high-value services is expected to drive utilization and enhance operational leverage. Piramal also highlighted margin improvements in the segment, supported by procurement efficiencies and better capacity utilization.

The company’s antibody drug conjugates (ADC) portfolio—a high-growth area in targeted cancer therapies—remains a bright spot, supported by integrated operations in Japan, the US, and the UK. ADCs combine monoclonal antibodies and chemotherapy agents to directly target tumors while minimizing collateral damage to healthy tissues.

Highlights:

• CDMO revenue at Rs 5,447 crore, up 15% YoY, with 54% from innovation.

• On-patent manufacturing revenue surged 50% to $179 million.

• ADC portfolio showing strong demand, with global site integration.

• Segment margins improved via procurement and operational gains.

India Consumer Healthcare Segment Crosses Rs 1,000 Crore Milestone in FY25

Piramal Pharma’s India Consumer Healthcare (ICH) business registered a significant achievement, crossing Rs 1,000 crore in revenue for FY25. The company’s power brands, which now account for nearly 50% of ICH sales, grew 20% YoY. Piramal noted a ramp-up in brand visibility and reach, with 21 new product launches, 31 new SKUs, and expansion in distribution networks. E-commerce continues to be a key growth lever, with online sales growing 39% YoY, now contributing 21% to total ICH revenue.

Highlights:

• ICH revenue exceeds Rs 1,000 crore, with power brands up 20% YoY.

• 21 new products, 31 SKUs launched, and distribution network expanded.

• E-commerce sales up 39%, now 21% of ICH revenue.

Complex Hospital Generics Maintain US Market Leadership, Telangana Facility Commences Operations

In the Complex Hospital Generics (CHG) segment, Piramal Pharma has maintained its leading position in the US, with 44% market share in sevoflurane and 75% in baclofen. The company began commercial production at a new unit in Digwal, Telangana in March 2025, targeting the $400 million sevoflurane market in the rest of the world. Sevoflurane is a widely used anesthetic, while baclofen is prescribed for muscle stiffness and pain associated with multiple sclerosis and spinal cord injuries.

Highlights:

• CHG segment leads US market: 44% share in sevoflurane, 75% in baclofen.

• New Telangana unit operational from March to tap global sevoflurane demand.

• Targeting $400M market outside the US for anesthetics and generics.