Piramal Pharma Limited Earnings Summary — Q4 FY2026
Piramal Pharma Returns to Minimal Operating Profit but Posts Net Loss Amid High Tax and Non-Operating Costs
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 17.5% sequentially in Q1 FY2027.
- Revenue of ₹2,270 Cr is 17.4% higher year-on-year.
- Revenue has compounded at -5.1% annualised over the last 10 quarters.
- Net profit of ₹-69 Cr is 15.1% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Operating margin stands at 8.6% in Q1 FY2027.
- Operating margin expanded by 308 bps year-on-year.
- Over the last two years operating margin has contracted by 188 bps.
- PBT margin is -0.3%.
- Expense growth of 13.6% remained below revenue growth of 17.4%.
- Operating profit of ₹195 Cr is 82.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 44/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,270 | 2,752 | 2,140 | 2,044 | 1,934 | 2,754 | 2,204 | 2,242 | 1,951 | 2,552 |
| Expenses | Stable | 2,075 | 2,291 | 1,944 | 1,885 | 1,827 | 2,193 | 1,866 | 1,900 | 1,747 | 2,022 |
| Operating Profit | Volatile | 195 | 461 | 196 | 159 | 107 | 561 | 338 | 342 | 204 | 530 |
| Operating Margin | Volatile | 8.6% | 16.7% | 9.2% | 7.8% | 5.5% | 20.4% | 15.3% | 15.2% | 10.5% | 20.8% |
| Other Income | Volatile | 109 | -116 | 12 | 80 | 98 | 58 | 29 | 78 | 42 | 8 |
| Interest | Stable | 88 | 83 | 89 | 82 | 86 | 104 | 103 | 108 | 107 | 114 |
| Depreciation | Stable | 224 | 218 | 213 | 203 | 197 | 243 | 197 | 192 | 185 | 196 |
| Profit Before Tax | Volatile | -7 | 43 | -94 | -46 | -79 | 273 | 67 | 120 | -45 | 227 |
| Tax | Volatile | 62 | 52 | 42 | 53 | 3 | 119 | 63 | 98 | 44 | 126 |
| Net Profit | Volatile | -69 | -9 | -136 | -99 | -82 | 154 | 4 | 23 | -89 | 101 |
| Net Margin | Volatile | -3.1% | -0.3% | -6.4% | -4.8% | -4.2% | 5.6% | 0.2% | 1.0% | -4.5% | 4.0% |
Key Takeaways
- Revenue showed a strong seasonal jump of 28.6% QoQ to 2,751.77 Cr, though remained flat YoY.
- Operating Profit Margin (OPM) recovered to 16.74% from single digits in previous quarters, yet trailed the 20.37% achieved in March 2025.
- The company reported a consolidated Net Loss of 8.83 Cr, heavily impacted by an unusually high tax rate of 120.53%.
- Other Income turned significantly negative (-116.14 Cr) in Q4, acting as a major drag on the bottom line.
- Inventory levels have surged to 7,552 Cr by fiscal year-end, indicating substantial capital lock-up.
- Interest costs remain high at 82.99 Cr for the quarter, though slightly lower than previous periods.
- The company continues to face high depreciation charges (218.38 Cr) following heavy capital expenditure cycles.
- Year-to-date performance remains weak with an overall loss for the full fiscal year 2026.
Management Guidance
Management remains focused on integrated projects (40% of new orders) to improve customer stickiness and margins, despite the current volatility in the CDMO sector.
Sentiment Shift
Deteriorating
While Q4 showed seasonal operational recovery in margins versus Q3, the move from a strong profit last year to a loss this year, combined with negative other income and high debt, indicates worsening financial health.
Outlook
The outlook is cautious. While CDMO demand from regulated markets remains a strength, the company must address high interest costs and inventory levels (345 days) to achieve sustainable bottom-line profitability.
From the Annual Report (Key Quotes)
“There is a visible gap between the 'vision' of high-margin growth and the 'reality' of bottom-line volatility.”
“PPL's financial profile is characterized by stagnant to declining profitability despite steady revenue growth.”
“The focus on integrated projects shows a strategic move toward stickier, higher-value customer relationships.”
Official Quarterly Documents
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This summary is AI-generated from Piramal Pharma Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.