Pharma Stock Jumps 15% as CDMO Revenue Surges 36% and FY27 Growth Guidance Improves
The shares of this global pharmaceutical, health and wellness company operating across three key businesses, including Contract Development and Manufacturing Organisation (CDMO), Complex Hospital Generics (CHG), and Piramal Consumer Healthcare (PCH) are in the spotlight after it rose by 15 per cent in today’s session following its Q2 results, supported by CDMO business growth.
With a market capitalisation of Rs. 30,115 cr, the shares of Piramal Pharma Ltd were trading at Rs. 226.50 per share, making a high of Rs. 228 in today’s market session, increasing 15% from its previous close of Rs. 198.45 per share.
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Financial Performance: Revenue Rises 28% YoY and 15% QoQ
Piramal Pharma reported consolidated revenue from operations of Rs. 2,617 crore in Q2 FY27, up 28% from Rs. 2,044 crore in Q2 FY26. Revenue also increased 15% quarter-on-quarter from Rs. 2,270 crore in Q1 FY27. For H1 FY27, revenue grew 23% year-on-year to Rs. 4,887 crore from Rs. 3,977 crore.
EBITDA increased 72% year-on-year to Rs. 385 crore in Q2 FY27, compared with Rs. 224 crore in the corresponding quarter last year. The EBITDA margin expanded to 14.7% from 11% a year ago, compared with approximately 12.6% in Q1 FY27. Higher capacity utilisation, operating leverage, disciplined execution and cost optimisation supported the improvement. For H1 FY27, EBITDA rose 72% to Rs. 669 crore, while the margin increased to 13.7% from 9.8%.
The company reported a net profit of Rs. 5 crore in Q2 FY27, compared with a net loss of Rs. 99 crore in Q2 FY26 and a loss of Rs. 69 crore in Q1 FY27. However, it continued to report a net loss of Rs. 64 crore for H1 FY27, narrower than the Rs. 181 crore loss in H1 FY26 after exceptional items.
CDMO Business: Revenue Jumps 36% YoY
The CDMO business was the largest contributor to Q2 FY27 revenue growth, with segment revenue rising 36% year-on-year to Rs. 1,424 crore from Rs. 1,044 crore. For H1 FY27, revenue increased 28% to Rs. 2,611 crore from Rs. 2,041 crore. Management attributed the performance to healthy commercial demand, improved execution and disciplined cost management, with India and North America leading growth.
The business also recorded strong growth in specialised services. During H1 FY27, innovation-related revenues increased 24%, on-patent commercial manufacturing revenues rose 39%, and antibody-drug conjugate (ADC) services revenue grew 51%. The company added 22 new customers and hosted 110 customer audits during the half-year, while its Phase III development pipeline increased to 28 molecules from 25 in March 2026.
Piramal Pharma is strengthening its biologics capabilities through the acquisition of a controlling stake in Yapan Bio. Its Lexington expansion remains on track to add sterile fill-finish capabilities and complete its integrated ADC offering. A new microbiology laboratory has also been commissioned at the site.
Complex Hospital Generics: Revenue Grows 32%
The Complex Hospital Generics business reported Q2 FY27 revenue of Rs. 849 crore, up 32% from Rs. 644 crore in Q2 FY26. H1 FY27 revenue rose 24% to Rs. 1,592 crore from Rs. 1,281 crore. Growth was supported by inhalation anesthesia sales in markets outside the US and the integration of Kenalog, which contributed to quarterly revenue and is expected to be an important growth driver during FY27.
The company maintained a 48% value share in the US Sevoflurane market and its number-one position in the US intrathecal baclofen market, according to IQVIA data cited in its presentation. It is continuing to invest in complex and differentiated generics, branded products, in-licensing and co-development opportunities to strengthen the segment’s long-term portfolio.
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Consumer Healthcare: Revenue Increases 13%
Piramal Consumer Healthcare reported Q2 FY27 revenue of Rs. 359 crore, up 13% from Rs. 319 crore in Q2 FY26. H1 FY27 revenue increased 14% to Rs. 706 crore from Rs. 621 crore. Power brands grew 21% during H1 FY27 and contributed 53% of segment sales, while e-commerce revenue rose 32% and accounted for 28% of sales.
The company is focusing on premiumisation and selective product launches, including the Vizible range under Lacto Calamine. It invested approximately 11% of Consumer Healthcare sales in media and trade promotions during H1 FY27. Its Bayer distribution agreement is scheduled to expire in December 2026, although management expects no material impact on FY27 guidance from the transition.
FY27 Guidance and Expansion Plans
Following its strong first-half performance, Piramal Pharma raised its FY27 revenue growth outlook to 19–20%, with management expecting higher profitability meaningfully. The company expects CDMO momentum to continue through H2, supported by healthy demand and order inflows. CHG is expected to benefit from the Kenalog integration, while Consumer Healthcare is expected to receive support from power brands and e-commerce. Management noted that H2 is typically stronger than H1.
The company continues to invest in manufacturing capabilities and specialised offerings. As of September 30, 2026, net fixed assets stood at Rs. 10,448 crore, compared with Rs. 9,784 crore in March 2026. Net debt increased to Rs. 4,859 crore from Rs. 4,164 crore over the same period.
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In conclusion, Piramal Pharma’s Q2 FY27 results show broad-based revenue growth, led by CDMO, alongside improving EBITDA margins and a raised FY27 outlook. However, the modest quarterly net profit, H1 loss and rising net debt remain important monitorables. Sustaining the rally will depend on continued order execution, delivery against management guidance and converting stronger operating performance into consistent net profitability.