Piramal Pharma Records ₹136 Crore Net Loss in Third Quarter of FY26
Piramal Pharma, the Mumbai-based pharmaceutical company, has reported a consolidated net loss of ₹136 crore for the third quarter ended December 31, 2025. This marks a significant downturn from the net profit of ₹4 crore recorded in the same quarter of the previous fiscal year. The company attributed this loss primarily to challenges in its Contract Development and Manufacturing Organization (CDMO) business, driven by inventory destocking and slower early-stage order inflows.
Revenue Decline and Operational Challenges
Revenue from operations during the quarter declined to ₹2,140 crore, compared to ₹2,204 crore in the year-ago period. In a statement, the company highlighted several factors impacting revenue growth. These include inventory destocking for a large on-patent commercial product by a customer, inconsistent recovery in US biopharma funding leading to slower order inflows in the first half of the fiscal year, uncertainties surrounding global trade policies, and regulatory delays affecting inhalation anesthesia products for ex-US markets from the Digwal facility.
Nandini Piramal, Chairperson of Piramal Pharma, stated, "FY26 has been a muted year for the company due to the impact of inventory destocking and slower early-stage order inflows in H1FY26 in our CDMO business." She emphasized that these headwinds have created a challenging environment, but the company remains focused on long-term growth strategies.
Signs of Recovery and Strategic Investments
Despite the current setbacks, Piramal noted early signs of recovery in recent times. There has been a pick-up in Request for Proposals (RFPs) and order inflows, supported by improved biopharma funding and increased merger and acquisition activities in the US healthcare sector. "However, in recent times, we are seeing early signs of recovery with pick-up in RFPs and order inflows on the back of improved biopharma funding and increased M&A activities in the US healthcare space," she added.
In its Complex Hospital Generics (CHG) business, Piramal Pharma is actively investing in new products and expanding its presence in ex-US markets. A key strategic move in this direction is the acquisition of niche brands like Kenalog, which synergizes with the company's existing operations. The subsidiary, Piramal Critical Care B.V., has entered into a definitive agreement to acquire Kenalog and its associated brands from Bristol-Myers Squibb Company for an upfront consideration of USD 35 million, with contingent payments of up to USD 65 million based on operational and financial milestones.
Kenalog Acquisition and Future Outlook
Kenalog is a branded commercial injectable product containing Triamcinolone Acetonide, a synthetic corticosteroid with anti-inflammatory, antipruritic, and antiallergic properties. It is indicated as adjunctive therapy for conditions such as acute gouty arthritis and rheumatoid arthritis. Currently marketed by Bristol-Myers Squibb across 15 countries under trademarks like Kenalog, Kenacort, Trigon, and Adcortyl, this acquisition is expected to bolster Piramal Pharma's portfolio in specialized therapeutic areas.
Looking ahead, Piramal expressed confidence in the company's long-term growth prospects. "Despite the slower growth in FY26, we continue to believe in long term growth prospects of our businesses and back them with timely investments in capacities and capabilities," she said. The company anticipates that the fourth quarter, historically its strongest, will follow this trend in the current fiscal year. Additionally, the USD 90 million investment to expand the Lexington and Riverview facilities is progressing as planned.
On the stock market front, Piramal Pharma shares were trading 5.22 percent higher at ₹162.30 per share on the Bombay Stock Exchange (BSE) following the announcement, indicating investor optimism about the recovery signs and strategic initiatives.
