Piramal Pharma began FY27 on a strong note, reporting a 17 percent year-on-year increase in revenue to Rs 2,270 crore during the June quarter. The company also delivered a sharp 72 percent rise in EBITDA to Rs 285 crore, reflecting improved operating leverage, stronger execution, and a recovery in demand across its key business segments.

According to Chairperson Nandini Piramal, the company's improved performance was driven by broad-based demand recovery combined with operational discipline maintained during the previous period of subdued demand. She noted that continuous focus on operational excellence enabled the company to benefit significantly once business volumes started improving.

The Contract Development and Manufacturing Organisation (CDMO) business remained the primary growth driver during the quarter, with revenue increasing 19 percent year on year to Rs 1,187 crore. The segment benefited from higher biopharmaceutical funding, stronger customer engagement, and an expanded commercial team that enhanced client visibility and business development efforts.

Management stated that request-for-proposal activity has increased considerably over recent quarters, providing a healthy pipeline for future business. The company is now focused on converting these proposals and quotations into commercial contracts. It also highlighted that improved order inflows, better contract win rates, and sustained customer demand are expected to support future growth despite longer customer decision-making timelines.

The Complex Hospital Generics business also recorded strong performance, with revenue rising 17 percent to Rs 743 crore. Growth was supported by continued strength in inhalation anaesthesia and intrathecal therapies, along with improving demand from markets outside the United States.

A key growth catalyst for the segment is Kenalog, the anti-inflammatory injectable acquired from Bristol Myers Squibb. Piramal Pharma expects commercial supplies of the product to commence from the second quarter of FY27, with revenue contribution beginning during the same period. Management believes Kenalog has the potential to generate double-digit million-dollar annual revenue while strengthening the company's hospital-focused product portfolio across more than 15 international markets.

The company reaffirmed its guidance of mid-teen revenue growth for FY27 and expects operating profitability to improve further as capacity utilisation increases and recently commissioned facilities contribute to production. Management also indicated that the company expects to return to profitability from the second quarter onward, despite reporting a net loss of Rs 69 crore in the first quarter due to higher raw material costs and tax expenses.

With improving demand conditions, a healthy order pipeline, and new product contributions expected over the coming quarters, Piramal Pharma believes it is well positioned to sustain its growth momentum and enhance profitability during the remainder of FY27.