Piramal Pharma on Tuesday reported a consolidated net profit of Rs 5 crore for the July-September quarter (Q2 FY27), swinging back from a loss of Rs 99.22 crore in the same quarter a year earlier, the Mumbai-based company said in a regulatory filing reported by PTI.

Source: PTI via The Hindu BusinessLine

Revenue from operations rose 28 per cent to Rs 2,617.06 crore, up from Rs 2,043.72 crore a year earlier — yaani about Rs 26.2 billion in quarterly sales. Total expenses also rose, to Rs 2,589.10 crore from Rs 2,170.29 crore, but sales grew faster than costs.

Source: PTI via Medical Dialogues

Rs 5 croreConsolidated net profit in Q2 FY27, vs a Rs 99.22 crore loss a year ago
Rs 2,617.06 croreRevenue from operations, up 28% year-on-year
Rs 385 croreEBITDA, up 72%, with margin at 14.7% vs 11.0% a year ago

Analysts had expected another loss

The result was a surprise: analysts polled by Informist had expected Piramal to report a consolidated net loss of about Rs 71.7 crore, which would have been its sixth straight loss-making quarter. Instead, earnings before interest, tax, depreciation and amortisation (EBITDA) rose 72 per cent to Rs 385 crore, and the EBITDA margin widened to 14.7 per cent from 11.0 per cent, helped by higher capacity use, operating leverage and cost discipline, Informist reported.

Source: Informist Media

All three businesses grew. The contract development and manufacturing (CDMO) business contributed Rs 1,424 crore in the quarter, up 36 per cent; Complex Hospital Generics delivered Rs 849 crore, up 32 per cent; and Piramal Consumer Healthcare posted Rs 359 crore, up 13 per cent, according to the company's results summary. For the first half of FY27, revenue rose 23 per cent to Rs 4,887 crore and the net loss narrowed to Rs 64 crore from Rs 181 crore a year earlier.

Shares rallied, outlook raised

Investors reacted strongly: the stock rallied about 15 per cent in trade on Wednesday, October 28, touching a fresh 52-week high, Upstox reported. Following the first-half performance, the company upgraded its FY27 revenue growth outlook to 19-20 per cent. Piramal said it completed 12 regulatory inspections and 110 customer audits in the first half while keeping its record of no 'official action indicated' classifications in US FDA inspections.

The turnaround is still narrow — a Rs 5 crore profit on more than Rs 2,600 crore of revenue — so whether it holds will depend on CDMO order execution and margins in the second half. (Sources: PTI via The Hindu BusinessLine and Medical Dialogues, Informist Media, Upstox.)