CARE Ratings Upgrades Piramal Pharma’s Long-Term Rating To 'AA'; Outlook Stable

Piramal Pharma on Monday said CARE Ratings has upgraded its rating on the company's long-term bank facilities and non-convertible debentures to 'AA' from 'AA-', with the outlook revised to stable from positive. The agency also upgraded the issuer rating to 'AA' with a stable outlook, the company said in an exchange filing.

The rating upgrade reflects strong growth in key segments—contract development and manufacturing, complex hospital generics, and consumer healthcare—in 2024-25, CARE said in a separate note. Operating income rose 12% on year, led by the CDMO business, especially on-patent commercial manufacturing.

The company’s EBITDA margin improved to 16% in 2024-25, aided by margin gains in the CDMO segment. CARE noted Piramal’s diversified portfolio, presence in niche therapies, global footprint, experienced management, and industry track record as supporting factors for the upgrade.

However, CARE highlighted concerns around high capital intensity, underutilised capacity from earlier debt-funded expansion, and expected higher debt in 2025-26 for US brownfield projects, which could temporarily weaken credit metrics.
The agency also reaffirmed its 'A1+' rating for Piramal Pharma’s short-term bank facilities.