Piramal Pharma
Piramal Pharma
HealthcareKey Fundamentals
SmallcapPharmaceuticalsHealthcareTapetide Score
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Key Insights
Weaknesses
5- Stock is trading at 3.22 times its book value
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 7.03% over past five years.
- Company has a low return on equity of -0.88% over last 3 years.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Piramal Pharma has a market cap of about ₹28,021 crore and is loss-making on a trailing basis, with a P/E of -88.2 and last-year ROE of -4%. Sales grew 8% a year over 3 years but only 1% over the trailing twelve months, and Q4 FY26 consolidated revenue was flat YoY at ₹2,752 crore as the CDMO segment (61% of sales) fell 4%. The stock has returned a 30% CAGR over 3 years and 12% over 1 year, while trading at 3.39x book value.
- The stock has compounded at 30% a year over 3 years and returned 12% over the last year, despite weak reported profits.
- Sales grew at an 8% CAGR over 3 years, slightly faster than the 7% 5-year CAGR, showing steady revenue growth over time.
- Standalone revenue for Q1 FY27 (June 2026 quarter) was ₹1,124.95 crore, up about 16% from ₹969.88 crore in the same quarter a year earlier.
- Non-CDMO segments (about 39% of sales) grew enough in Q4 FY26 to keep consolidated revenue flat at ₹2,752 crore, even though CDMO fell 4%. This shows some diversification.
- Q4 FY26 earnings included a one-time, non-cash impairment of ₹176 crore on intangible assets under development. That charge inflates the reported loss compared with underlying operations.
- At a P/B of 3.39, the market cap of about ₹28,021 crore implies book value of about ₹8,266 crore, giving a large equity base behind the valuation.
- The company is loss-making on a trailing basis, with a P/E of -88.2 and TTM profit growth of -296%.
- Profit has declined at a 31% CAGR over 3 years, so earnings have been getting worse over the medium term.
- ROE averaged -0.88% over 3 years and was -4% last year. Shareholder capital is currently not earning a positive return.
- The stock trades at 3.39-3.42x book value despite negative ROE. The valuation depends on a future earnings recovery rather than current returns.
- Interest coverage is low, and the company may be capitalizing interest cost. Reported profitability could therefore understate the true cost of debt.
- CDMO, which makes up 61% of sales, fell 4% YoY to ₹1,708 crore in Q4 FY26, so the largest segment is shrinking.
- TTM sales growth is only 1%, and 5-year sales growth is 7.03% a year, which is modest for a growth-oriented pharma services business.
- The dividend yield is only 0.07%, giving shareholders almost no cash return while earnings are negative.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- USFDA Form 483 at Morpeth Sep 14
The US FDA issued a Form 483 with 7 observations after a GMP inspection of the Morpeth, UK facility from Sep 3 to Sep 11, 2026. The company has 15 days to respond, and the observations relate to practices, procedures and documentation.
- Stock slides on FDA news Sep 14
Shares fell over 3% intraday, the fourth straight losing session. The stock traded at a 12.4% discount to its 52-week high of ₹231.93, set on Sep 8.
- Bayer sales deal not renewed Oct 1
Piramal Pharma's commercial sales arrangement with Bayer Pharmaceuticals will expire on December 31, 2026 and will not be renewed. This puts the revenue tied to the arrangement at risk from 2027.
- Strong 21% YTD gain Sep 14
Despite the recent decline, the stock is up over 21% since the start of the year and more than 1% over the trailing 12 months. It hit a 52-week high of ₹231.93 on Sep 8.
- ₹4.06 Cr GST demand Sep 29
The company received a GST demand of ₹4.06 crore plus an equal penalty covering FY21 to FY23. It plans to appeal, saying it has a strong case, and the amount is small relative to its size.
- UK institutional investor meets Sep 8
Piramal Pharma will hold physical group and one-on-one meetings with institutional investors in the UK on Sep 29 and 30, 2026. Avendus Spark is arranging the meetings.
- Shareholding: promoters at 34.8% Sep 14
Promoters hold 34.8% of the company and the public holds more than 64.72%, based on the latest shareholding data.
TL;DR: Piramal Pharma is still up more than 21% year to date, but sentiment has weakened in recent weeks. The stock fell for four straight sessions after the US FDA issued 7 observations at its Morpeth, UK facility, and it now trades about 12% below its Sep 8 high. The non-renewal of the Bayer sales deal from December 31, 2026 adds a medium-term revenue risk, while the ₹4.06 Cr GST demand is immaterial. The near-term trend is getting worse, and the next triggers to watch are the FDA's reaction to the company's Form 483 response and management's plan to replace the Bayer revenue.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,749 | 1,911 | 1,959 | 2,552 | 1,951 | 2,242 | 2,204 | 2,754 | 1,934 | 2,044 | 2,140 | 2,752 | 2,270 |
| Expenses | 1,617 | 1,646 | 1,690 | 2,022 | 1,747 | 1,900 | 1,866 | 2,193 | 1,827 | 1,885 | 1,944 | 2,291 | 2,075 |
| Operating Profit | 132 | 266 | 268 | 530 | 204 | 342 | 338 | 561 | 107 | 159 | 196 | 461 | 195 |
| OPM % | 8% | 14% | 14% | 21% | 10% | 15% | 15% | 20% | 6% | 8% | 9% | 17% | 9% |
| Other Income | 53 | 68 | 43 | 8 | 42 | 78 | 29 | 58 | 98 | 80 | 12 | -116 | 109 |
| Interest | 119 | 110 | 106 | 114 | 107 | 108 | 103 | 104 | 86 | 82 | 89 | 83 | 88 |
| Depreciation | 174 | 185 | 186 | 196 | 185 | 192 | 197 | 243 | 197 | 203 | 213 | 218 | 224 |
| PBT | -107 | 40 | 19 | 227 | -45 | 120 | 67 | 273 | -79 | -46 | -94 | 43 | -7 |
| Tax % | -8% | 87% | 48% | 55% | 97% | 81% | 94% | 44% | 3% | 115% | 45% | 121% | 830% |
| Net Profit | -99 | 5 | 10 | 101 | -89 | 23 | 4 | 154 | -82 | -99 | -136 | -9 | -69 |
| EPS in Rs | -0.75 | 0.04 | 0.08 | 0.77 | -0.67 | 0.17 | 0.03 | 1.16 | -0.61 | -0.75 | -1.02 | -0.07 | -0.52 |
Profit & Loss
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|
| Sales | 6,315 | 6,559 | 7,082 | 8,171 | 9,151 | 8,869 | 9,205 |
| Expenses | 4,887 | 5,609 | 6,453 | 6,974 | 7,706 | 7,947 | 8,195 |
| Operating Profit | 1,428 | 950 | 629 | 1,197 | 1,445 | 922 | 1,010 |
| OPM % | 23% | 14% | 9% | 15% | 16% | 10% | 11% |
| Other Income | 230 | 319 | 272 | 172 | 208 | 74 | 86 |
| Interest | 163 | 198 | 344 | 448 | 422 | 341 | 343 |
| Depreciation | 545 | 586 | 677 | 741 | 816 | 831 | 858 |
| PBT | 949 | 485 | -120 | 179 | 415 | -176 | -104 |
| Tax % | 12% | 22% | 55% | 90% | 78% | 85% | — |
| Net Profit | 835 | 376 | -186 | 18 | 91 | -326 | -314 |
| EPS in Rs | — | — | -1.41 | 0.13 | 0.69 | -2.45 | -2.36 |
| Div. Payout % | 0% | 18% | 0% | 82% | 20% | 0% | — |
Balance Sheet
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 995 | 1,186 | 1,193 | 1,323 | 1,324 | 1,327 |
| Reserves | 4,610 | 5,511 | 5,580 | 6,588 | 6,801 | 6,835 |
| Borrowings | 3,025 | 4,128 | 5,637 | 4,710 | 4,856 | 5,675 |
| Other Liabilities | 2,047 | 1,781 | 1,893 | 2,461 | 2,447 | 3,770 |
| Total Liabilities | 10,677 | 12,605 | 14,303 | 15,083 | 15,429 | 17,607 |
| Fixed Assets | 6,105 | 6,879 | 7,469 | 7,990 | 8,133 | 8,684 |
| CWIP | 627 | 1,172 | 1,419 | 1,116 | 977 | 1,100 |
| Investments | 123 | 267 | 639 | 385 | 291 | 437 |
| Other Assets | 3,822 | 4,286 | 4,777 | 5,592 | 6,028 | 7,386 |
| Total Assets | 10,677 | 12,605 | 14,303 | 15,083 | 15,429 | 17,607 |
Cash Flow
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Operating | 598 | 766 | 484 | 1,005 | 892 | 1,653 |
| Investing | -4,464 | -1,737 | -1,334 | -416 | -488 | -820 |
| Financing | 3,977 | 794 | 818 | -422 | -441 | -39 |
| Net Cash Flow | 110 | -177 | -32 | 166 | -37 | 794 |
| Free Cash Flow | -5 | -91 | -461 | 294 | 233 | 776 |
| CFO/OP | 52 | 98 | 107 | 97 | 85 | 202 |
Ratios
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Debtor Days | 91 | 99 | 93 | 95 | 94 | 89 |
| Inventory Days | 218 | 207 | 227 | 269 | 261 | 345 |
| Days Payable | 163 | 153 | 161 | 190 | 173 | 279 |
| Cash Conversion Cycle | 147 | 153 | 159 | 174 | 182 | 155 |
| Working Capital Days | 44 | 36 | 13 | 21 | 60 | 44 |
| ROCE % | — | 7% | 2% | 5% | 6% | 3% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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67 extracted metrics + investor summaries across FY21–FY27.
Documents
Frequently Asked Questions about Piramal Pharma
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Company Information
Piramal Pharma Limited (PPL) is part of the Piramal group of companies. The company operates through 3 major segments (1) Contract development and manufacturing organisations (CDMO), (2) Complex hospital generics (critical care), and (3) consumer healthcare (OTC). Company entered Pharma space back in 1988 with acquisition of Nicholas Laboratories and grew through a series of Mergers & Acquisitions[1] and various organic initiatives. In 2010 the Domestic formulations business was sold to Abott for $3.7 billion[2] and Diagnostic Services was sold to Super Religare Laboratories (SRL)[3]
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