Concord Biotech’s Q2FY26 revenue reached ₹247 crores, while H1FY26 revenue was ₹451 crores. The company faced temporary setbacks due to regulatory delays and shifting procurement patterns. Despite these challenges, successful regulatory inspections and strategic initiatives, including USFDA approval for Teriflunomide Tablets and investments in Cellimmune Biotech Limited, position Concord for future growth. Excluding initial start-up costs, EBITDA margin stood at 41%.
Financial Performance Overview
Concord Biotech reported a revenue of ₹247 crores for Q2FY26. H1FY26 revenues reached ₹451 crores. While Q2 revenues increased by 21% compared to the previous quarter, there was a year-on-year dip of approximately 20%. H1 revenues were lower compared to ₹526 crores in H1FY25. Revenue from API business stood at ₹345 crores in H1FY26, versus ₹401 crores in the same period last year. Formulation business contributed ₹106 crores in H1FY26, compared to ₹125 crores in the previous year. Domestic revenue was ₹247 crores in H1FY26, with exports at ₹204 crores.
EBITDA and Profitability
EBITDA for the quarter was reported at ₹88 crores, and for H1FY26 it reached ₹150 crores, compared to ₹218 crores. EBITDA grew by approximately 44% on a quarter-on-quarter basis. Reported EBITDA margins stood at 36%; however, excluding the impact of expenses related to the injectable facility, the comparable EBITDA margin was 41%. Profit after tax stood at ₹63 crores for Q2FY26, and ₹107 crores for H1FY26, yielding a PAT margin of 24%.
Operational Highlights and Strategic Initiatives
Despite revenue challenges, Concord Biotech achieved key regulatory milestones, including multiple site inspections across its facilities. Unit II completed emerging market inspections, and Unit III successfully completed its first EU inspection. The company received USFDA approval for Teriflunomide Tablets. Stellon Biotech Inc. was incorporated to drive marketing and commercialization in the U.S. market. Concord Lifegen Limited was established as a wholly-owned subsidiary to strengthen domestic capabilities. An investment was made in Cellimmune Biotech Limited, focusing on advanced cancer therapies.
Factors Affecting Revenue
The subdued revenue performance was attributed to three major factors. Processing delays for the Written Confirmation impacted EU sales. A government supply contract in the Middle East was deferred due to regional uncertainties. A temporary shift in procurement patterns from U.S. customers occurred due to ongoing tariff situations. The revenue loss due to the Written Confirmation issue was between ₹20 crores and ₹25 crores, which was realized in Q3. The Middle East tender also accounted for around ₹20 crores.
Future Outlook
The company anticipates stronger performance in the second half of the year. Excluding the timing-related issues, the underlying unit economics remain strong. With higher revenues expected from the injectable facility and recovery of deferred revenues, Concord Biotech is positioned to sustain and strengthen margins going forward. The injectable facility at Valthera experienced initial margin impacts due to commercialization costs; however, it is expected to contribute positively to overall margins in the coming quarters.
Source: BSE
