Why Did Piramal Pharma Jump 4% Despite Reporting ₹136 Cr Loss in Q3? Here’s the Reason

Synopsis: Piramal Pharma shares rose 4% despite a Rs 136 crore Q3 loss as investors focused on one-off exceptional costs, sequential revenue and EBITDA improvement, recovery signals in the CDMO segment, and strong growth in consumer healthcare, supporting medium-term earnings visibility.

The shares of this company, which is a part of the Piramal group of companies and operates through 3 major segments: first, the Contract Development and Manufacturing Organisations (CDMO); second, the Complex Hospital Generics; and third, consumer healthcare, had its shares in focus after the company reported disappointing Q3 results; however, the shares still jumped 4%. Here’s the reason why. 

With the market cap of Rs 21,281 crore, the shares of Piramal Pharma Ltd have jumped 4% and reached a high at Rs 163.20, compared to their previous day’s closing price of Rs 154.25. The shares have an ROCE and ROE of 6.45% and 1.11%, respectively.

Q3 Result highlights

The revenue from operations for the company stood at Rs 2,140 crore when compared to Rs 2,204 crore in Q3 FY25, falling by about 3 per cent on a YoY basis and, on a QoQ basis, increasing by 5 per cent from Rs 2,044 crore in Q2 FY26. The Q3 FY26 loss is at Rs 136 crore, from a Q3 FY25 profit of Rs 4 crore YoY, and on a QoQ basis, the loss has widened from Rs 99 crore to the present Rs 136 crore.

Why the share price jump?

The stock price appreciated as investors saw that the Q3 FY26 loss was due to specific, temporary, and one-time reasons and not because of any deterioration in the underlying business. Piramal Pharma posted a PAT loss of Rs 136 crore, which included Rs 41 crore of exceptional items (Rs 26 crore on account of gratuity and leave encashment due to changes in labour laws and Rs 15 crore from a CDMO customer settlement). 

On an operational front, the company posted a 3% YoY decline in revenue at Rs 2,140 crore, but sequentially, revenue grew 5%, showing signs of improvement despite destocking of inventory by a large CDMO client. The markets also took note of the clear signs of a recovery in the CDMO business, which had been the biggest drag on the company. CDMO revenue declined 9% YoY to Rs 1,166 crore, but the company pointed out a sharp increase in RFPs and order receipts since October 2025, thanks to an improvement in US biopharma funding. 

H2CY25 funding was almost double that of H1CY25 and over 50% higher than H2CY24. Moreover, EBITDA improved sequentially to Rs 239 crore in Q3 from Rs 224 crore in Q2, showing early signs of stabilising, even before the start of volume recovery.

Another important supporting factor was the resilience in non-CDMO businesses and investments. The Consumer Healthcare business registered a 20% YoY increase to Rs 334 crore, with 26% of PCH sales coming from power brands, which grew 30% YoY, and e-commerce sales, which grew 50% YoY. 

The company further reaffirmed its capex of $90 million for the Lexington and Riverview facilities, sustained its zero USFDA OAI record with 30 regulatory inspections cleared in 9MFY26, and announced the acquisition of Kenalog (US$35 million upfront payment), which is expected to contribute to revenue without incurring incremental expenses. These points further strengthened the conviction that earnings would bounce back from FY27, thus justifying the positive stock response despite the reported loss

Management commentary 

Nandini Piramal, Chairperson, Piramal Pharma Limited, said, “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.

However, in recent times, we are seeing early signs of recovery with a pick-up in RFPs and order inflows on the back of improved biopharma funding and increased M&A activities in the US healthcare space. In our CHG business, we are investing in new products and expanding our presence in the ex-US markets.

Acquiring a niche brand like Kenalog, which is synergetic to our current business, is an important step in this direction. Our consumer business continues to outperform in its representative markets with robust growth in our power brands. Despite the slower growth in FY26, we continue to believe in the long-term growth prospects of our businesses and back them with timely investments in capacities and capabilities. Q4 has been historically the strongest quarter for the company, and we expect this trend to continue this year as well.”

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