Orchid Pharma reports Q2 FY26 revenue decline amidst antibiotics downturn

Orchid Pharma Limited reported Q2 FY26 sales of INR194 crores, representing a 13% year-on-year decline. Global margins for the quarter stood at 32%, down from 43% in the previous quarter, primarily due to margin compression and inventory revaluation. The company noted that the overall quantity of antibiotics exports from India fell by 26% year-on-year, with export value dropping by 36%, indicating no real recovery in volume or price.

Despite the downturn, Orchid Pharma announced the formal completion of its acquisition of global rights to Enmetazobactam and the trademark Exblifep, a "transformative development" that gives the company full control over its regulatory and commercial strategy. The company expects this asset to generate significant revenue and profits and is actively pursuing out-licensing deals in multiple markets. In India, approximately 15,000 patients have been treated with Orblicef, and over 200,000 vials have been sold.

The 7ACA project continues to progress, with all fermentals erected, aiming to strengthen API manufacturing and reduce import dependency. The Cefiderocol project's building structure is nearly complete, with equipment deliveries initiated. Orchid Pharma aims for production readiness by Q4 FY26, positioning itself for long-term growth despite short-term headwinds.