Piramal Pharma Limited saw its shares soar by 5.5 percent in early trade on October 24, following the announcement of stellar earnings for the July-September quarter. By 09.38 am, the company's stock was trading at Rs 227.29 on the NSE, buoyed by strong financial performance and strategic growth plans.

In the second quarter of FY25, Piramal Pharma reported a net profit of Rs 22.59 crore, marking a 3.5-fold increase year-on-year from Rs 5.02 crore in Q2 FY24. This sharp profit surge is primarily attributed to the robust performance of its Contract Development and Manufacturing Organisation (CDMO) business, which grew 24 percent on year to Rs 1,320 crore, contributing a significant 59 percent of the company’s total revenue. The growing demand for innovation-driven projects within the CDMO space fueled this growth, solidifying Piramal Pharma’s leadership in the segment.

Nandini Piramal, Chairperson of Piramal Pharma, emphasized the company’s continued momentum in delivering healthy revenue growth and expanding EBITDA margins. “Our CDMO business continues to thrive, driven by a significant pick-up in innovation-related work and on-patent commercial revenues,” she noted in an exchange filing.

Adding to this positive outlook, the company unveiled an ambitious $80 million expansion plan for its Lexington facility, aimed at enhancing its sterile fill-finish capabilities. This expansion, set to be completed by FY27, positions Piramal Pharma to meet the growing demand for high-quality sterile drug manufacturing, a key area of growth in the global pharmaceutical market.

Piramal’s Consumer Healthcare (CHG) division also delivered a strong performance, with steady volume growth in inhalation anaesthesia products across the US and Emerging Markets. The company's India Consumer Healthcare (ICH) segment saw continued upward trends, particularly in its power brands and e-commerce sales. This strong demand across various divisions helped the company achieve a 17.3 percent increase in total revenue for Q2, which stood at Rs 2,241.75 crore, up from Rs 1,911.38 crore in the same period last year.

In addition to revenue growth, Piramal Pharma’s operational efficiency led to significant margin improvements. The EBITDA margin expanded by 130 basis points year-on-year to reach 15.2 percent in Q2, aided by lower operating expenses. This margin expansion underscores the company’s focus on improving profitability alongside revenue growth.

The positive quarterly performance is expected to further strengthen Piramal Pharma's financial outlook. The company remains committed to its long-term goals, which include achieving US$2 billion in revenue with a 25 percent EBITDA margin and maintaining a 1x net debt/EBITDA ratio by FY30.

The drugmaker’s Lexington expansion aligns with its broader strategy to capitalize on the growing demand for advanced pharmaceutical manufacturing solutions. As part of its ongoing efforts to enhance capacity, Piramal Pharma continues to invest in its core businesses and emerging market segments, laying the foundation for sustained growth in the coming years.

With its strong CDMO business, expanding footprint in consumer healthcare, and commitment to innovation-driven projects, Piramal Pharma is poised to play a leading role in the global pharmaceutical landscape. Investors have responded positively to the company’s impressive Q2 performance, driving increased trading volumes and boosting its stock price.

Looking ahead, the company’s focus on sterile drug manufacturing, inhalation anaesthesia products, and further capacity expansions will likely drive both revenue and margin growth. The ongoing expansion at the Lexington facility, in particular, will enable Piramal Pharma to cater to the rising demand for sterile drug fill-finish capabilities, a critical service in the global healthcare industry.

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Piramal Pharma’s stellar performance in Q2 FY25 showcases its commitment to driving long-term financial goals, marked by sustained growth across its core business verticals and strategic expansion efforts. The company’s solid footing in innovation-driven CDMO projects, consumer healthcare, and its expanding global manufacturing capabilities position it well for future success in the highly competitive pharma landscape.