Piramal Pharma contract biz hurt from US policies in FY26

The firm expects quick recovery in FY27, on track to be a $2bn co by 2030, says chairperson

- Jessica Jani

Piramal Pharma anticipates muted, single-digit growth for its contract development and manufacturing organization (CDMO) business in FY26, hurt by near-term uncertainties as clients defer decisions amid concerns over US pricing and tariff policies, a top company official said.

However, the Mumbai-based firm expects a quick recovery in FY27, and is on track to achieve its target of becoming a $2-billion company with 25% Ebitda (earnings before interest, taxes, depreciation, and amortization) margins by FY30, chairperson Nandini Piramal told Mint.

"There's been an increase in uncertainty and volatility...where you've got pricing [cuts], whether you've got tariffs, or biotech funding which has been kind of uneven," Piramal said. "A lot of customers are pausing on decision-making," She said, adding that the company has seen an increase in requests for proposals (RFPs) from potential clients. "They're trying to scenario-play all the options."

A CDMO is a company that provides comprehensive services, from drug development to clinical trials and drug manufacturing to other pharmaceutical and biotech firms on a contract basis.

"In FY27, we should see a significant and a strong recovery," she added.