Earnings call transcript: Orchid Pharma posts Q1 2026 revenue miss as stock slips

Orchid Pharma announced lower-than-expected revenue for its first quarter of fiscal 2026, resulting in a stock price decline following the market close. The company reported earnings per share of $3.60 and revenue of $2.31 billion, falling short of the $2.371 billion forecast by 2.57%. Shares fell 3.44% to $998.35 after hours, before trading at $1,008, still below the pre-earnings level.

Revenue increased year-over-year from INR 263 crore to INR 304 crore, driven by better product mix and pricing conditions. However, the company's full-year performance was weaker, with revenue falling 11.8% to INR 1,233 crore due to declines in volume and pricing across key products. Despite the challenges, the first quarter showed stabilization with a 3 percentage point increase in gross margin and a sharp rise in EBITDA.

Management emphasized a shift towards a value-focused business model, supported by a broader product portfolio and new manufacturing projects. The stock, which remains near its 52-week range of $480 to $1,133, is currently considered undervalued by InvestingPro analysis. Management did not provide full-year revenue or earnings guidance for FY2027, but highlighted execution, margin recovery, and project delivery as key priorities.

Analysts anticipate sales growth and profitability in the current year, with improving regulated-market demand in the next two to three quarters.