Motilal Oswal has issued a buy rating on Piramal Pharma with a target price of ₹230 in its research report dated July 30, 2026. According to the brokerage's analysis, the pharmaceutical company delivered better-than-expected financial performance in the first quarter of FY27, prompting the positive investment recommendation.
Piramal Pharma (PIRPHARM) delivered better-than-expected revenue and EBITDA performance for 1QFY27, with revenue beating estimates by 7% and EBITDA by 41%. As reported by Motilal Oswal, the company also reported a lower-than-expected loss, supported by higher other income. The strong performance came after four quarters of year-on-year decline in the CDMO segment, which witnessed a strong revival in 1QFY27 driven by execution across India as well as overseas sites.
With the healthy start to FY27, Motilal Oswal expects PIRPHARM to deliver a PAT of ₹1.1 billion and ₹3 billion in FY27/FY28 after reporting losses in FY26. According to the brokerage's outlook, the company is positioned for a significant turnaround in profitability following the strong quarterly performance and improved operational metrics.
Piramal Pharma shares are trading at ₹177.16 with a market capitalization of ₹23,586.16, showing a 3.01% gain today. The company declared a final dividend of 0.08% per share for FY2025-26. Despite the positive performance, management indicated that the customer decision-making timeline for conversion from RFPs into commercial business remains prolonged, which continues to be a key challenge for the company's growth trajectory.
