Takeaways from the JM Financial Promoter Conference
We recently hosted Piramal Pharma Ltd at the JM Financial Promoter Conference, represented by Nandini Piramal (promoter and chairperson) and Peter DeYoung (CEO). The management discussed the company’s recent performance and future growth strategy across its core businesses. The company has outlined an ambitious roadmap to nearly double revenues in key segments by FY30, driven by steady organic growth, margin expansion, and increased operating leverage. The management also highlighted the broader industry funding environment, noting its critical importance to sustaining growth. Below are the key takeaways.
Short-term hiccups in FY26, recovery in FY27: The CDMO segment experienced a one-off impact this year due to destocking of a key commercial product. While the end product performed reasonably well, it fell short of the innovator’s initial expectations. The company is not expecting incremental contribution from this product for the year, with normalized sales to resume from FY27. Uncertainty surrounding tariffs and biotech funding further added to the cautious outlook for the CDMO segment. However, FY27 is expected to be a strong year, with destocking pressures easing and certain products progressing beyond Phase III. For FY26, the company has guided to a 15% growth in the CDMO segment, excluding the effects of destocking.
FY30 Roadmap – Steady Growth with Margin Expansion: The company has laid out a steady long-term growth plan across key verticals, aiming for consistent, margin-accretive expansion through FY30. In Complex Hospital Generics, revenues are expected to double from USD 300mn last year to USD 600mn by 2030, driven largely by existing products and supported by organic growth, with selective CAPEX towards in-licensing. This segment is projected to deliver 13% revenue CAGR while maintaining current margins. In Consumer Healthcare, the business generated INR 10bn last year and is expected to grow linearly, with margins improving from current single-digit levels to low double digits by FY30. Meanwhile, the CDMO segment is set to nearly double from USD 650 million to USD 1.25bn by FY30. Operating leverage is expected to kick-in, with CDMO EBITDA margins are expected to reach industry average 25% by FY30.
Drivers for CDMO: The CDMO business is increasingly shifting toward high-value, innovation-led work, positioning it well for sustained growth. Currently, the revenue mix reflects a growing focus on innovator partnerships: 25% of CDMO revenue comes from innovator development, 27% from innovator manufacturing, and 2% from innovator discovery, with generic manufacturing accounting for 46%. Importantly, the share of differentiated work—such as antibody-drug conjugates (ADCs), peptides, and other complex modalities—has risen significantly, now comprising 49% of CDMO revenue, up from just 27% four to five years ago. This strategic pivot not only enhances margins but also builds stronger, stickier relationships with clients. Additionally, the company’s global network—comprising 9 sites in India, 2 in the UK, 3 in the US, and 1 in Canada—provides geographic flexibility, supports efficient RFP handling and cross-selling.
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