Piramal Pharma Eyes Faster Growth on Complex Drug Demand

Piramal Pharma expects to significantly accelerate its earnings growth over the next two to three years. This optimistic outlook is primarily driven by the rising global demand for complex pharmaceuticals, with a specific focus on targeted cancer therapies. The company, a significant player in contract drug manufacturing which constitutes 55% of its overall revenue, is witnessing a recovery in biotech funding.

Following a slowdown influenced by macroeconomic and geopolitical uncertainties, global biotech funding into Indian contract drug makers has improved substantially. Chairperson Nandini Piramal noted an approximate 80% increase in funding in the latter half of the past year compared to the same period the previous year. This uptick is now translating into increased requests for proposals and order inflows for Piramal Pharma.

Despite a 3% revenue drop in fiscal 2026, largely due to a 10% slump in its contract drug manufacturing vertical, the company aims for early-to-mid-teen revenue growth in the coming two to three years. Piramal Pharma is strategically prioritizing higher-value segments within contract manufacturing, such as antibody-drug conjugates (ADCs), which are advanced targeted cancer therapies. This strategic shift is expected to leverage operating efficiencies as revenues grow.

The company is not prioritizing active ingredients for weight-loss drugs, like generic semaglutides, due to intense market competition and declining prices. Instead, the focus remains on high-value areas like ADCs, which represent a high fixed-cost business where revenue growth can significantly boost profitability.