Orchid Pharma reported a consolidated net profit of ₹12 crore for the first quarter of fiscal 2027, reversing a ₹3 crore loss in the same period a year earlier, as the company’s post-merger integration with Dhanuka Laboratories began to yield margin improvements. Revenue for the quarter increased 16% year-over-year to ₹304 crore, though it fell short of analyst expectations by approximately 2.6%. The company’s gross margin expanded by 300 basis points to 33%, while EBITDA margin rose to 8% from 3% in Q1 FY26.
The merged entity, effective since July 10, 2026, reported an EBITDA of ₹25 crore, a 178% increase from ₹9 crore in the prior-year quarter. Earnings per share turned positive at ₹1.99, compared with a loss of ₹0.40 per share in Q1 FY26. The non-penicillin, non-cephalosporin (NPNC) segment contributed ₹21 crore in revenue, while the antimicrobial stewardship (AMS) division generated ₹5 crore with a marginal EBITDA loss of ₹50 lakh.
Orchid Pharma’s full-year fiscal 2026 results reflected the challenges in its core cephalosporin franchise, with revenue declining 11.8% to ₹1,233 crore and EBITDA falling 49% to ₹95 crore. The company attributed the decline to industry overcapacity and pricing pressure, particularly in non-regulated markets, where volumes and pricing for key products such as cefixime dropped 15% to 20%.
Looking ahead, Orchid Pharma highlighted progress on its backward integration project for 7-ACA in Jammu, with commercial operations expected to commence in March 2027. The cefiderocol facility is slated for commissioning in December 2026, with validation batches and initial approvals anticipated in early 2027. The company also emphasized the commercialization of EXBLIFEP (enmetazobactam) and selective expansion into regulated finished-dose markets as key growth drivers.
Shares of Orchid Pharma traded near the upper end of their 52-week range of $480 to $1,133, with a price-to-book ratio of 10.9 and a beta of 1.72. The stock initially fell 3.44% in after-hours trading before recovering to a 2.85% gain at $1,008, up from the previous close of $980.05.
