Piramal Pharma Q2 Results Review - Operating Performance Above Estimate; FY25 Guidance Intact: Motilal Oswal

Motilal Oswal Report

Piramal Pharma Ltd. delivered better-than-expected operational performance in Q2 FY25 fueled by superior traction in the contract development manufacturing organisation segment (59% of sales). Following earnings deterioration in FY23/FY24, Piramal Pharma is exhibiting healthy recovery in H1 FY25.

Considering the advancement in clinical development of certain CDMO projects, the company is investing $80 million to double its sterile fill-finish capacities at the Lexington site.

We trim our FY25/FY26/FY27 estimates by 6%/3%/4% to factor in:

1. higher financial leverage, and

2. ongoing supply-chain issues in the injectable pain management segment.

Compared to 15%/37% YoY revenue/Ebitda growth for H1 FY25, we expect 11%/15% YoY growth in revenue/Ebitda to Rs 50 billion/Rs 9 billion in H2 FY25.

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