Shares of Piramal Pharma shot up 13.5 percent in early trade on May 25, as investors cheered for the drugmaker's strong earnings recovery in the quarter ended March 31, 2023.

The company posted its highest margin and revenue in FY23 during the fourth quarter. Bouncing back from a net loss of Rs 90 crore in Q3, the drugmaker reported a net profit of Rs 50 crore in the quarter under review.

Revenue also grew 26 percent sequentially to Rs 2,164 crore from Rs 1,716 crore in the previous quarter. Strong growth in the Contract Development and Manufacturing Organisation (CDMO) and complex hospital generic segments offset the weakness in Indian consumer healthcare business.

The EBITDA (earnings before interest, taxes, depreciation, and amortization) margin also expanded sharply to 17 percent in Q4 from 10 percent in Q3.

The drug maker expects to go live with the expansion at its Grangemouth facility in Scotland in the second half of FY24 which will help
strengthen its position in the antibody drug conjugate segment.

In FY23, the company successfully cleared four inspections by the US Food and Drug Administration without receiving any observations. It is an impressive feat considering the fact the intense scrutiny by the US drug regulator has been an overhang for most pharma companies.