Shares of Piramal Pharma jumps over 4% to intra-day high of Rs 230 on NSE today after the company reported a strong financial performance for the second quarter of FY25. The company’s net profit surged by an impressive 350% year-on-year, reaching Rs 22.59 crore, compared to Rs 5.02 crore in Q2 FY24.
Revenue and EBITDA Growth
Revenue from operations grew by 17.3%, totaling Rs 2,241.75 crore, up from Rs 1,911.38 crore in the same quarter last year. Piramal Pharma’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29%, increasing to Rs 341.61 crore from Rs 265.64 crore. The EBITDA margin also improved to 15.2% from 13.9% year-on-year.
Key Drivers of Growth
The robust growth in EBITDA was driven by operating leverage, cost optimization initiatives, and an enhanced revenue mix. Chairperson Nandini Piramal noted, “We continue our momentum of delivering healthy revenue growth, accompanied by year-on-year EBITDA margin expansion.”
She attributed this success primarily to the company’s Contract Development and Manufacturing Organization (CDMO) business, which has seen a strong uptick in innovation-related projects and on-patent commercial revenues.
Expansion Plans
To maintain its growth trajectory and meet rising demand for sterile fill-finish capabilities, Piramal Pharma has announced an $80-million expansion plan for its Lexington facility.
This expansion is expected to be completed by the end of fiscal 2027, according to Nandini Piramal. The company aims to further enhance its capabilities to capitalize on future growth opportunities.
Stock Performance in Last One Year
Piramal Pharma shares have delivered positive returns across various time frames. Over the last three months, the stock has shown a positive return of 39.58%, indicating short-term growth. In the last six months, the performance has been even more impressive, with a substantial increase of 53.46%, showcasing the stock’s resilience and upward momentum.
Year-to-date, Piramal Pharma shares have surged by 57%, emphasizing the stock’s positive trajectory in the current calendar year. Looking back over the last twelve months, the stock has demonstrated significant growth, surpassing 132.40%. These consistent positive returns underscore the stock’s strong performance and appeal to investors.
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