Piramal Pharma is approaching the upcoming months with a sense of “cautious optimism,” particularly in light of geopolitical uncertainties and new policies from the United States administration.
According to Nandini Piramal, Chairperson of Piramal Pharma, customers are actively seeking a diversified supply chain. She noted, “We have available capacity in the US across various areas such as API (active pharmaceutical ingredients) and formulations. We are also upgrading and expanding our capacity at our Lexington facility for injectables. Therefore, we can accommodate those looking to relocate to the US.” This statement came in response to concerns regarding potential increases in tariffs on imported pharmaceuticals, as mentioned by President Trump, aimed at promoting local production.
Regarding the current state of the biotech industry, Piramal observed, “While funding for biotech has improved over the past year, it is merely sufficient to sustain ongoing projects and not enough to initiate new ones. We will have to see how this evolves in the coming months; thus, I remain cautiously optimistic.” She added that, although the company is receiving more requests for proposals (RFPs), clients are taking their time to make decisions.
In terms of the company’s financial performance for the third quarter ending December 31, 2024, Piramal projected revenue growth in the early teens along with significant improvements in EBITDA and profit after tax (PAT). “Generally, the fourth quarter is very strong for us, giving rise to fixed cost leverage, which we anticipate will enhance PAT in the upcoming quarter,” she remarked. Additionally, she noted that the complex hospital generics business and consumer healthcare sectors have remained relatively stable throughout the year. On the other hand, the CDMO (contract development and manufacturing organization) segment experiences fluctuations due to customer ordering patterns, which typically see heightened activity in the first quarter as clients plan for the year ahead.
For the quarter in question, the company reported operational revenue of ₹2,204 crore, reflecting a 13 percent increase from ₹1,959 crore in the same period the previous year. However, PAT decreased by 64 percent to ₹4 crore, down from ₹10 crore the previous year.
Piramal highlighted that FY25 has been steady for the company, with EBITDA enjoying a growth rate of 20 percent. “Our CDMO sector continues to perform strongly, achieving an 18 percent revenue growth, alongside improved EBITDA margins in the first nine months of FY25. This success has largely been driven by innovation-related initiatives. Our complex hospital generics division also registered early-teen revenue growth this quarter, largely due to strong volume gains in the Inhalation Anaesthesia portfolio. Furthermore, in our India consumer healthcare segment, key brands are seeing an impressive growth rate of approximately 19 percent,” she stated.
