Nandini Piramal, Chairperson, Piramal Pharma

Funding by large bio-pharmaceutical companies continues to remain uncertain and inconsistent, not just because of trade agreements or tariff threats from the US, but because of factors that include taxes and changes around the regulatory authority, said Nandini Piramal, Chairperson, Piramal Pharma, on the outlook for Contract Development and Manufacturing Organisations (CDMO).

Responding to queries on the companys subdued financial performance in Q1 ended June 30, 2025, including a 6 per cent dip in its CDMO business, Piramal told businessline: Traditionally, first quarter has been a soft quarter for us. Pointing to biotech funding in the US that fuels the CDMO sector, she said it was still a bit inconsistent, and the reasons are not as much the trade and tariffs as it is the kind of interest rates, tax&what happens to R&D (research and development), what happens to the FDA (Food and Drug Administration). With its manufacturing network across the US, UK and India, she said the company has earmarked about $120 million this year for capacity expansion, a large portion of which would go to its Lexington site.

Revenue down

Piramal Pharmas revenue from operations stood at �1,934 crore for Q1 2025, down one per cent from �1,951 crore in Q1FY25. Excluding the impact of destocking in one of its large CDMO products, the year-on-year growth was in early double-digits, the company said. The company posted a net loss �82 crore, compared to a net loss of �89 crore for the same quarter last year.

Giving details on the destocking, Piramal said one of their biggest customers had an on-patent commercial product that they wanted to de-stock. They ordered a lot of quantities for launch, she said, adding that the product was doing reasonably well, but the company wanted to balance their inventory. Excluding the impact of destocking in one large on-patent commercial product, our CDMO business delivered mid-teen revenue growth during the quarter accompanied by improvement in EBITDA margin, especially at our overseas sites, she said.

CDMO business

The companys CDMO business stood at �997 crore, down 6 per cent from �1,057 crore in the same quarter last year. Its complex hospital generics segment posted revenues of �637 crore in the period under review, marginally up from �631 crore in the same period last year. One of its paediatric products, Neoatricon was launched in select European Union markets in Q1FY26, and the company plans to launch in more markets in Q2FY26. Piramal Consumer Health grew 15 per cent at �302 crore in the period under review, compared to �263 crore in the same period last year.

Growth in our CHG business is also expected to pick up for the remaining part of the year, given the timing of some of the institutional orders. Our consumer business delivered healthy growth, in-line with our expectations, driven by power brands and ecommerce sales. Withstanding the near-term challenges, we believe we are on track to achieve our FY30 aspirations of becoming a US$2 billion revenue company with 25 per cent EBITDA margin and high-teen ROCE, she said,

Published on July 29, 2025