India · Delayed Price · Currency is INR Cohance Lifesciences Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw a 13% revenue decline due to destocking, shipment delays, and site disruptions, but gross margins remained strong at 70.8%. Growth is expected to return in H2 FY 2027, driven by new product launches, improved utilization, and a diversified pipeline.
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FY 2026 saw a 6.7% revenue decline and 40% drop in adjusted EBITDA, driven by customer inventory normalization, regulatory issues, and product mix. Management expects growth to resume in FY 2027, with a robust pipeline and continued investment in technology and quality systems.
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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% year-on-year revenue growth and strong EBITDA margins, driven by robust demand, strategic acquisitions, and expanding global capabilities. Specialty Chemical CDMO is recovering, and the company reaffirms FY25 growth guidance with accelerated momentum expected in FY26.
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Revenue grew 12% year-on-year in Q2 FY25, led by 40% growth in the pharma CDMO segment and expanded gross margins. Specialty chemicals showed early recovery signs, while the Sapala acquisition and Cohance merger are set to drive future growth. Full-year growth guidance is reiterated.
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Revenue declined 34% YoY in Q1 FY25, but gross margins and adjusted EBITDA improved. Strong RFQ inflows and a robust phase III pipeline support growth expectations for H2 FY25, with full-year revenue and EBITDA growth anticipated. Integration of Sapala and Cohance, plus strategic investments, position the business for 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.