Piramal Pharma Q2 FY27 results: net profit ₹5.03 crore vs ₹99.22 crore loss, revenue up 28.1%

How did Piramal Pharma perform in Q2 FY27?

Piramal Pharma Limited reported consolidated revenue of ₹2,617 crore for Q2 FY27, up 28.1% from ₹2,044 crore in Q2 FY26 and 15.3% from ₹2,270 crore in Q1 FY27. Total income was ₹2,652.99 crore, up 25.8% year on year. On the standalone basis, revenue was ₹1,345.38 crore and profit after tax was ₹170.74 crore, against profit before tax of ₹196.33 crore.

Consolidated EBITDA was ₹348.74 crore in Q2 FY27, up 119.8% from ₹158.69 crore a year earlier and 78.7% from ₹195.20 crore in the previous quarter. EBITDA margin rose to 13.3% from 7.8% in Q2 FY26 and 8.6% in Q1 FY27, an increase of 5.5 percentage points and 4.7 percentage points respectively.

Profit before tax was ₹63.89 crore, against a loss of ₹60.97 crore in Q2 FY26 and a loss of ₹27.02 crore in Q1 FY27. After tax of ₹76.60 crore, the company reported a net profit of ₹5.03 crore, compared with a net loss of ₹99.22 crore a year earlier and ₹69.39 crore in the previous quarter. Basic EPS was ₹0.04, against ₹0.75 negative in Q2 FY26 and ₹0.52 negative in Q1 FY27.

What changed in Piramal Pharma's costs and profit?

Total expenses rose 19.3% year on year to ₹2,589 crore from ₹2,170 crore, slower than the 28.1% rise in revenue. Cost of materials was ₹645.82 crore, up ₹162.40 crore or 33.6%, employee cost was ₹714.32 crore, up ₹102.86 crore or 16.8%, other expenses were ₹647.82 crore, up ₹76.75 crore or 13.4%, depreciation was ₹233.15 crore, up ₹30.31 crore or 14.9%, and finance costs were ₹87.63 crore, up ₹5.21 crore or 6.3%.

Other income fell to ₹35.93 crore from ₹65.60 crore, a decline of ₹29.67 crore or 45.2%. There was no exceptional item in either quarter. Tax expense rose to ₹76.60 crore from ₹53.04 crore, an increase of ₹23.56 crore or 44.4%. The company said the EBITDA improvement was driven by higher capacity utilisation, operating leverage, disciplined execution and sustained cost optimisation initiatives.

Against Q1 FY27, total expenses rose 8.5% to ₹2,589 crore, while revenue rose 15.3%. Cost of materials fell ₹78.95 crore or 10.9% to ₹645.82 crore and finance costs fell ₹0.45 crore or 0.5% to ₹87.63 crore. Employee cost rose ₹38.69 crore or 5.7%, depreciation rose ₹9.60 crore or 4.3%, and other expenses rose ₹101 crore or 18.5%. Other income fell ₹53.48 crore or 59.8%, and tax rose ₹14.67 crore or 23.7%.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹4,886.98 crore, up 22.9% from ₹3,977.44 crore in H1 FY26. Total income was ₹5,012.32 crore, up 22.2% from ₹4,101.44 crore. Profit before tax was ₹36.88 crore against a loss of ₹158.56 crore a year earlier, a difference of ₹195.44 crore.

The company reported a net loss of ₹64.35 crore for H1 FY27, compared with a net loss of ₹180.92 crore in H1 FY26, a difference of ₹116.57 crore. EPS was negative ₹0.48 against negative ₹1.37 in the first half of the previous year, a difference of ₹0.89. The press release noted EBITDA rose 72% year on year in both Q2 FY27 and H1 FY27, with over 350 basis points of margin expansion in each period.

What do the balance sheet and cash flow show?

Total assets were ₹18,537.21 crore as on 30 September 2026, against ₹17,965.04 crore as on 31 March 2026. Total equity was ₹8,164.71 crore against ₹8,162.62 crore, borrowings were ₹5,665.28 crore against ₹5,495.48 crore, and cash was ₹545.02 crore against ₹1,199.88 crore. Inventories were ₹3,294.82 crore against ₹3,064.44 crore, trade receivables ₹2,253.71 crore against ₹2,157.67 crore, and trade payables ₹2,734.83 crore against ₹2,479.11 crore.

For the first half of FY27, cash flow from operating activities was ₹390.91 crore, against ₹889.76 crore in H1 FY26. Investing cash flow was negative ₹970.47 crore against negative ₹468.28 crore, financing cash flow was negative ₹131.33 crore against negative ₹360.99 crore, and capital expenditure was ₹858.69 crore against ₹433.22 crore. The press release showed net debt of ₹4,859 crore as on 30 September 2026 against ₹4,164 crore as on 31 March 2026.

How has Piramal Pharma done over the last 8 quarters?

Over the last eight quarters, revenue was highest in Q4 FY26 at ₹2,751.77 crore and lowest in Q1 FY26 at ₹1,933.71 crore. Revenue has risen year on year in each of the last two quarters, and in Q2 FY27 it reached ₹2,617.06 crore, up from ₹2,269.92 crore in Q1 FY27.

EBITDA margin bottomed at 5.5% in Q1 FY26 and peaked at 20.4% in Q4 FY25. It stood at 13.3% in Q2 FY27, up from 8.6% in Q1 FY27. Net profit was highest at ₹153.5 crore in Q4 FY25 and lowest at a loss of ₹136.19 crore in Q3 FY26, before moving to a profit of ₹5.03 crore in Q2 FY27 from a loss of ₹69.39 crore in Q1 FY27.

What else did the company announce?

The board of directors met on 27 October 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with limited review reports from the statutory auditors. The meeting began at 5:30 pm and ended at 8:30 pm, and the results were filed with the BSE.

The company filed a press release and investor presentation on the same day. It said the FY27 outlook was upgraded on the back of a strong first-half performance, with revenue growth now expected at 19% to 20% and meaningfully higher profitability. An earlier filing dated 16 October 2026 had intimated the board meeting and stated that the trading window would remain closed until 29 October 2026. No dividend or fund-raising announcement was made in these filings.

What did Piramal Pharma's management say?

Management said FY27 revenue growth guidance was raised to approximately 19–20% from early-to-mid teens, with profitability expected to grow meaningfully faster than revenue and H2 FY27 expected to be stronger than H1 across the portfolio. Chairperson Nandini Piramal said, "Given this broad-based performance and outlook for the second half, we're upgrading our FY27 annual guidance."

Management said CDMO revenue grew 28% in the first half, ADC revenue rose over 50% and innovation work reached 49% of sales. Differentiated CDMO services increased to 43% of revenue from 40% at FY26-end. Complex generics Q2 revenue grew 32%, led by inhalation anaesthesia and the initial Canalog contribution. Consumer healthcare revenue grew 14% in the first half, with power brands and e-commerce contributing 53% and 28% of sales.

On margins, management said CDMO gross margin is expected to move toward the historical 64–65% average on a full-year basis, and innovation plus on-patent commercial work is expected to exceed 50% of CDMO business within a couple of years. Three Lexington capacity go-lives are targeted from late 2026 through end-2027. CEO Global Pharma Peter T. Young said the multi-geography strategy is being validated, and that capital spending at that site is focused primarily on maintenance and compliance CapEx rather than growth CapEx.

Management flagged several risks: US FDA observations at Peth's remain open with resolution expected through monthly updates but no date given; Canalog remains supply-constrained during a transition to a new CMO, with validation and filing having no committed timetable; CDMO demand remains exposed to cyclical biotech funding; and high tax incidence delays earnings conversion, with overseas carry-forward losses expected to be used over 2–3 years. Lexington growth depends on customer clinical readouts, and breakeven timing at Sellersville remains unspecified.

How did Piramal Pharma shares react?

The results were filed after market on 27 October 2026. From the price when the filing appeared, the stock was up 2.8% after five minutes, 2.8% after 15 minutes and 4.2% after 30 minutes. On the reaction day it closed 15.4% above its previous close of ₹199.75, and by the next day's close it was up 15.5% from that pre-results close.

Earlier results-day reactions were mixed: the stock was up 16.1% on 23 October 2024 and 10.0% on 28 January 2025, but fell 5.2% on 14 May 2025 and 2.6% on 28 April 2026. It was up 0.8% on 29 July 2026, down 1.2% on 29 January 2026 and up 0.1% on 5 November 2025.

How did other Pharmaceuticals companies do?

Among the 60 Pharmaceuticals companies compared this quarter, the median revenue growth was 18.9%. Thirty-nine grew slower than Piramal Pharma and 21 grew faster, against the company's own revenue growth of 28.1% in Q2 FY27. Of the 54 peers for which profit was compared, 38 reported higher profit.