**Piramal Pharma Plans Capacity Expansion Amidst Muted Growth Forecast**
Piramal Pharma Ltd is set to enhance its capacities in the contract development and manufacturing sector, which serves as its primary revenue source. Chairperson Nandini Piramal shared insights on the company’s strategy during a post-results interview, indicating that while growth may be subdued in 2025-26, the firm aims to double its revenues to $2 billion by 2029-30. To support this goal, Piramal announced plans to invest between $100 million and $125 million in capacity expansion in 2025.
Piramal emphasized the necessity of ongoing capital expenditure (capex) to achieve their long-term objectives, stating, “…but even to reach our 2029-30 goals, we will have to continue to spend on capex…obviously, there is maintenance and compliance capex, but we will continue to spend on de-bottlenecking and increasing capacities where needed.”
In its latest financial report, the company revealed a 1% year-on-year decline in revenue for the June quarter, totaling ₹1,934 crore, which fell short of Bloomberg’s estimate of ₹2,047 crore. The EBITDA also saw a significant drop of 26%, landing at ₹165 crore, with the EBITDA margin decreasing to 9% from 11% in the same quarter of the previous fiscal year. The net loss reported was ₹82 crore, reflecting an 8% decrease year-on-year.
The decline in revenue was attributed to the destocking of one of its major CDMO products. Piramal anticipates that growth in 2025-26 will remain muted due to this factor and uncertainties surrounding funding for biotechs in the U.S. However, Piramal noted, “What we’re quite pleased at is that if you take away the de-stocking event, we’ve grown at mid-teens, and we’ve also seen a more balanced growth in our overseas sites,” adding optimism for a stronger second half of the fiscal year.
Looking ahead, the company projects mid-single-digit revenue growth and mid-teens EBITDA growth for 2025-26, with expectations of improved profitability. Piramal previously indicated a recovery is anticipated in 2026-27.
In the first quarter of 2025-26, Piramal Pharma initiated the expansion of two U.S. facilities located in Lexington, Kentucky, and Riverview, Michigan, backed by a previously announced investment of $90 million. The company operates 15 global CDMO facilities, including four in North America, two in the UK, and nine in India.
As interest in Indian CDMOs rises, particularly those with specialized capabilities, Piramal is well-positioned to capture a significant share of this growing market. Despite an increase in requests for proposals (RFPs), the transition to actual client engagements has been gradual, with customers currently delaying decision-making due to domestic factors in the U.S., such as tax and interest rates, as well as FDA funding cuts.
**FAQ**
**What is Piramal Pharma’s growth strategy for the coming years?**
Piramal Pharma plans to focus on expanding its contract development and manufacturing capacities, aiming to double its revenues to $2 billion by 2029-30, despite expecting muted growth in 2025-26.
