FII Increases Stake: Helios Flexi, Mid and Small Cap Funds-Held Pharma Stock Sees Sharpest Rally in 2 Years; Management Raises FY27 Revenue Growth Expectations

Piramal Pharma has been working to improve utilisation across its global manufacturing network while expanding higher-value contract development and manufacturing capabilities. The company reported a sharp operating recovery in Q2FY27, with consolidated revenue from operations rising 28 per cent YoY to Rs 2,617 crore and earnings before interest, Tax, depreciation and amortisation (EBITDA) increasing 72 per cent to Rs 385 crore.

EBITDA margin expanded to 14.7 per cent from 11 per cent in the corresponding quarter last year, reflecting better capacity utilisation, operating leverage and cost-control measures. Piramal Pharma reported a profit after tax of Rs 5 crore, compared with a loss of Rs 99 crore in Q2FY26. Profit before tax improved to Rs 82 crore from a loss of Rs 46 crore, although a higher tax expense of Rs 77 crore limited the conversion of operating gains into net profit.

The Contract Development and Manufacturing Organisation (CDMO) business remained the main growth engine, with quarterly revenue rising 36 per cent YoY to Rs 1,424 crore. Complex Hospital Generics (CHG) revenue grew 32 per cent to Rs 849 crore, aided by inhalation anaesthesia sales in markets outside the US and the integration of Kenalog. Piramal Consumer Healthcare (PCH) revenue increased 13 per cent to Rs 359 crore, supported by power brands and e-commerce.

For the first half of FY27, revenue rose 23 per cent YoY to Rs 4,887 crore, while EBITDA grew 72 per cent to Rs 669 crore. The first-half net loss narrowed to Rs 64 crore from Rs 181 crore a year earlier. Management has raised its FY27 revenue growth expectation to 19 to 20 per cent and expects meaningfully higher profitability, supported by a healthy Order Book and a seasonally stronger second half.

Within CDMO, on-patent commercial revenue grew 39 per cent in the first half, while antibody-drug conjugate revenue rose 51 per cent. The company added 22 customers and increased its Phase III development pipeline to 28 molecules from 25 at March 2026. Its Lexington sterile fill-finish expansion remains on track, while the acquisition of a controlling stake in Yapan Bio is intended to strengthen biologics capabilities.

As of 9:40 am on October 28, 2026, Piramal Pharma shares were trading at Rs 223.05, up 12.4 per cent from the previous close of Rs 198.45. The stock was about 1.6 per cent below its 52-week high of Rs 226.60. The company’s market capitalisation stood at around Rs 26,421 crore. Foreign institutional ownership increased by 1.14 percentage points to 13.65 per cent, while domestic institutional ownership was broadly stable at 14.43 per cent.

The stock is also held by three mutual fund schemes of Helios Mutual Fund. Helios Flexi Cap Fund holds 24.57 lakh shares valued at approximately Rs 50.74 crore, representing 0.58 per cent of its portfolio. Meanwhile, Helios Mid Cap Fund holds 13.01 lakh shares worth Rs 26.87 crore, accounting for 1.14 per cent of its portfolio, while Helios Small Cap Fund holds 13.29 lakh shares valued at Rs 27.44 crore, representing 1.46 per cent of its portfolio. Collectively, these three Helios mutual fund schemes hold approximately 50.86 lakh shares worth Rs 105.05 crore in the company.

What This Means for Investors

The results strengthen the case that Piramal Pharma’s recovery is becoming broader than a single-business improvement. CDMO growth and rising utilisation are particularly important because the business offers the largest scope for operating leverage as overseas assets scale. CHG has added support through ex-US inhalation anaesthesia sales and Kenalog, while PCH continues to provide steadier growth through brands, distribution and digital channels. The higher FY27 revenue outlook indicates management sees sufficient momentum entering the second half.

Profitability remains the key test. The move to a quarterly profit is encouraging, but Rs 5 crore of net profit against Rs 385 crore of EBITDA shows that tax costs and below-EBITDA charges still constrain earnings conversion. The company also carried net debt of Rs 4,164 crore at March 31, 2026, making sustained cash generation and margin improvement important. At an enterprise value to trailing EBITDA multiple of 24.47 times, the valuation places importance on continued utilisation gains, CDMO order conversion and timely ramp-up of specialised capacity.

Disclaimer: The article is for informational purposes only and not investment advice.