Piramal Pharma Q4FY25 Update: What’s Happening and What’s Next?
If you’ve been keeping an eye on Piramal Pharma, here’s a quick lowdown on how they performed in Q4FY25 and what it means going forward.
How Did They Do in Q4FY25?
So, Piramal Pharma’s revenue for the quarter came in at ₹2,750 crore. That’s a solid jump — about 25% higher than the previous quarter and 8% up compared to last year. Not bad, right? But here’s the catch: this figure was still 4% shy of what analysts expected.
| What We’re Looking At | Q4FY25 Result | Change (QoQ) | Change (YoY) | Difference vs Our Estimates |
|---|---|---|---|---|
Revenue (₹ crore) | 2,750 | +25% | +8% | -4% |
The company mentioned that FY26 is expected to be a transient year due to inventory destocking of their largest product. In other words, this means FY26 will likely be a temporary phase with slower growth as the company clears out excess stock, before normal operations resume.
What’s Working in Their Favor?
One big positive is their EBITDA margins improved in FY25, and this mainly came from their growing CRDMO business (that’s Contract Development and Manufacturing Organisation). Basically, as this business grows, Piramal spreads its costs better and earns more profit.
Also, their morphine sulphate product saw healthy growth last year, which is great news.
So, what’s good here?
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Revenue is growing steadily, even with some challenges.
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EBITDA margins are getting better, thanks to CRDMO.
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Morphine sulphate is performing well.
And the not-so-great stuff?
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They’re carrying quite a bit of debt — their net debt is about 2.8 times their EBITDA for FY25.
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They rely heavily on a few key products, which can be risky if something goes wrong with those.
What’s the Market Saying?
Right now, the stock is trading at a price-to-earnings ratio of 55.7 times expected earnings for FY27. That’s a premium valuation, showing that investors expect good things down the line.
The target price was nudged up slightly from ₹300 to ₹305, and we are keeping their BUY rating on the stock.
What Should Investors Keep in Mind?
FY26 could be a bit uneven because of the inventory destocking, so don’t expect big growth right away. The company is working on improving its operations, especially through its CRDMO business and the growth of morphine sulphate.
If you’re following the stock, it’s important to keep an eye on their debt levels and how much they rely on just a few key products—those are the main risks to watch.
Revenue Growth Highlights:
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Q4FY25 revenue was ₹2,750 crore
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This represented a 25% increase QoQ
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And an 8% increase YoY
Wrapping Up
Piramal Pharma’s latest results show a company on the move — facing some near-term challenges, sure, but with a clear plan to turn things around. The improving margins and product growth are encouraging, and analysts seem optimistic with their BUY rating.
If you’re keeping this one on your watchlist, FY26 will be the year to watch closely.
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