Piramal Pharma is strategically positioning itself for a robust financial year 2026-27, projecting significant revenue expansion and a sharp rebound in profitability after navigating a challenging period of macro headwinds and inventory destocking.
Key Points
- Piramal Pharma expects early-to-mid teens revenue growth and significant profitability improvement in FY27, marking a return to growth after a challenging FY26.
- The company's contract development and manufacturing organisation (CDMO) business, which faced inventory destocking in FY26, is set to recover with stronger order inflows and a diversified order book.
- A key growth driver for FY27 will be the recently acquired product portfolio from Bristol Myers Squibb, expected to generate revenues from the second quarter.
- Structural tailwinds, including increasing on-shoring and near-shoring trends in global supply chains, are anticipated to benefit Piramal Pharma due to its US and UK manufacturing presence.
- Ongoing investments in capacity expansion, particularly in sterile injectables and advanced manufacturing, are attracting customer interest and are poised to support future growth.
Piramal Pharma projects early-to-mid teens revenue expansion, and sharp improvement in profitability in financial year 2026-27 (FY27), according to Chairperson Nandini Piramal.
This would be a return to growth for the firm after a tough FY26, marked by macro headwinds, with consolidated revenue declining 3 per cent to Rs 8,869 crore and Ebitda falling 28 per cent.
Overcoming FY26 Challenges
The contract development and manufacturing organisation business was marred by inventory destocking amid lower demand and operating deleverage, resulting in a 10 per cent decline during the year.
An impairment charge further weighed on profitability, pushing the company into a net loss for the year.
However, Piramal indicated that business momentum improved meaningfully in the second half, supported by a sharp rebound in global biotech funding — up about 80 per cent — which translated into stronger request for proposal activity and order inflows.
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 improving development pipeline should underpin growth.
Strategic Growth Drivers for FY27
A key trigger for growth in FY27 will be the recently acquired product portfolio from Bristol Myers Squibb, which is expected to start generating revenues from the second quarter.
The company also highlighted that its fixed-cost-heavy structure would amplify earnings recovery, with incremental revenues expected to flow through to Ebitda and net profit.
Beyond demand recovery, Piramal Pharma sees structural tailwinds from shifting global supply chains.
Increasing on-shoring and near-shoring trends, particularly in the US amid geopolitical and tariff uncertainties, are expected to benefit the company, given its manufacturing presence in the US and UK.
Additionally, its consumer healthcare and hospital generics segments continued to provide stability during FY26, with steady growth driven by power brands, premiumisation and expanding e-commerce channels.
Strengthening Market Position
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 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, Piramal said.
With improving demand visibility, rising order inflows and operational efficiencies kicking in, Piramal Pharma expects margin recovery to accelerate alongside revenue growth in FY27.
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