Piramal Pharma

The CDMO segment achieved 18% revenue growth in the first nine months of FY25, primarily driven by commercial manufacturing and generic API business. While the development segment remains subdued due to the global biotech funding crisis, management noted that funding is beginning to replenish biotech cash reserves. The company is seeing an increase in RFPs as customers look to diversify supply chains, though decision-making cycles remain prolonged.

The CHG business grew 14% in Q3, supported by strong volume uptick in Inhalation Anesthesia, where Piramal maintains a leading market share in Sevoflurane. To address supply constraints in the injectable pain management portfolio, the company has started working with an additional CMO partner. Capacity expansion projects at Digwal and Dahej are on track to be capitalized starting in the next financial year.

ICH Power Brands grew 19% in 9M FY25, led by brands like Little’s, CIR, and Polycrol, despite a general slowdown in the consumer industry. E-commerce has emerged as a critical channel, growing 40% and now contributing 20% of total ICH sales. The company launched approximately 40 new products and SKUs this year to maintain growth momentum and expand distribution into smaller towns.

Piramal Pharma maintained its net debt to EBITDA ratio at 2.8x, successfully keeping it below the 3x threshold. The company reported a high effective tax rate (100%+) in Q3 due to the mix of profitable and loss-making entities. However, management expects a meaningful reduction in the tax rate in Q4, which is historically the company's strongest and most profitable quarter.

Management reiterated its 'FY30' aspirations to double total revenues to $2 billion. This growth is expected to be accompanied by significant margin expansion to 25% and achieving high teens ROCE. The strategy relies on leveraging a global network of facilities, increasing the mix of integrated and innovation-related projects, and maintaining a best-in-class quality track record.