Orchid Pharma's Q2 F26 revenue (Rs 1,935 million, lower 13.1% YoY) was in line with estimates but Ebitda (Rs -15 million) and net earnings (Rs -57 million) were significantly below brokerage's/consensus expectations. Margins disappointed as company witnessed unprecedented pricing and volume pressures (even worse than Q1).
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Systematix Report
Systematix maintain cautious stance on the near-term earnings trajectory of Orchid Pharma Ltd. given industry-wide headwinds, but remain positive on the medium-term outlook supported by strategic assets, backward-integration benefits, and specialty pipeline.
Based on revised forecasts, maintains Buy with a price target of Rs 1,041.
The brokerages target price is based on 20x multiple to base business earnings (FY27E) and assign a risk adjusted option value of Rs 440 per share based on 5x earnings contribution from 7ACA, Cefiderocol, Enmetazobactam royalties and regulated market filings (ANDA with Para IV) by FY29.
Q2 FY26 Earnings Highlights
Orchid Pharma reported revenue at Rs 1,935 million in Q2FY26, down 13.1% on a YoY basis but up 11.9% on a QoQ basis. Ebitda stood at Rs -15 mn. Ebitda margin was -0.8%. PAT stood at Rs -57 million. PAT margin was -3%.
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