Orchid Pharma reported a quarterly revenue shortfall in the first quarter of fiscal 2026, missing analyst expectations as its stock price declined in after-hours trading.
The company posted revenue of $2.31 billion for the quarter, approximately 2.57% below the $2.371 billion consensus forecast, representing a shortfall of about $61 million. Earnings per share came in at $3.60. Revenue from operations, restated to reflect the combined entity following the merger with Dhanuka Laboratories, totaled INR 304 crore, up 15% year-over-year from INR 263 crore in the same period last year.
For the full fiscal year 2026, revenue declined 11.8% to INR 1,233 crore from INR 1,398 crore in FY 2025. Gross margin contracted to 32% from 36% in the prior year, while EBITDA rose to INR 25 crore from INR 10 crore, a 150% increase. Operating expenses remained flat at INR 353 crore compared with the prior year.
The company highlighted a challenging operating environment for its cephalosporin franchise, describing FY 2026 as one of the toughest years in 15 to 20 years due to volume and pricing declines of 15% to 20% across key products. Management emphasized disciplined growth, cost control, and strengthening profitability of the combined platform following the July 10 merger with Dhanuka Laboratories.
Looking ahead, Orchid Pharma outlined several strategic initiatives. Exblifep volume growth accelerated to approximately 50% in Q1 2027 after expanding 300% in Q3 2026 and 170% in Q4 2026. The cefiderocol project remains on track for commissioning by December 2026, with validation and initial batches expected between January and March 2027. Commercial launch is contingent on DCGI approval, with trial supplies mapped across 135 countries via GARDP.
The 7-ACA facility in Jammu is scheduled for commercial operations by March 2027, with a ramp-up plan targeting 80% to 100% utilization by the end of the first year. Long-term guidance calls for 80% in-house use and 20% third-party sales, with a weighted average pricing of about $60 for 7-ACA. Management noted stable pricing over the past decade, citing limited room for significant price reductions.
Orchid Pharma's stock fell 3.44% to $998.35 in after-hours trading from the prior close of $980.05, after earlier slipping to $1,008, a 2.85% gain. The shares have traded in a 52-week range of $480 to $1,133.
