India · Delayed Price · Currency is INR Cohance Lifesciences Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw revenue and EBITDA declines due to timing, product mix, and regulatory issues, but gross margins improved and free cash flow remained strong. Management expects growth to resume in FY 2027, supported by a robust pipeline and ongoing investments in technology and compliance.
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Revenue declined 8% year-on-year in Q2 FY2026 due to shipment deferrals, but material margins improved and adjusted for restocking, growth was 14%. FY2026 revenue is expected to be flat versus FY2025, with H2 anticipated to be stronger. Biotech funding headwinds and plant issues remain key risks.
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Q1 FY 2026 saw 30% revenue growth, strong customer engagement, and major investments in ADC and oligonucleotide capacity. Guidance for FY 2026 and 2030 remains firm, with niche technology and differentiated platforms driving future growth.
Fiscal Year 2025
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Completed merger and rebranding, delivering 9% revenue growth and 34% EBITDA margin in FY25. Double-digit growth is expected in FY26 across all segments, with continued investment in technology and capacity expansion. EBITDA margin is guided to the low 30% range for FY26.
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Q3 FY25 saw 40% revenue growth year-on-year, driven by robust demand and strategic acquisitions in ADC and oligonucleotide technologies. Adjusted EBITDA margin reached 38.7%, and the company reaffirmed FY25 growth guidance with accelerated expansion expected in FY26.
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Q2 saw 12% revenue growth year-on-year, led by a 40% surge in pharma CDMO, while specialty chemicals showed early recovery signs. The Sapala acquisition and Cohance merger advanced, with full-year growth guidance reiterated and margin expansion achieved.
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Q1 FY25 saw a 34% YoY revenue decline but improved margins and strong cash flow. Growth is expected in H2, driven by pharma CDMO and API Plus, with strategic acquisitions and a robust RFQ pipeline supporting long-term expansion.
Fiscal Year 2024
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The acquisition of a majority stake in NJ Bio expands end-to-end ADC capabilities, strengthens U.S. presence, and creates significant cross-sell and growth opportunities. The deal is valued at $100 million pre-money, with integration and cost synergies expected to drive margins above 20% EBITDA.
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A controlling stake in Sapala Organics was acquired to strengthen capabilities in the fast-growing oligonucleotide CDMO market. The deal, valued at a 13-15x EBITDA multiple, is expected to be EPS accretive and deliver synergies within 2-4 years, leveraging both firms’ strengths.