Dishman Carbogen Amcis reported Q3 FY26 revenue of INR 720 crores, a 5.5% growth year-over-year, despite a slight delay in shipments. The reported EBITDA was INR 113 crores, achieving a margin of 15.7%. Management provided operational updates on Carbogen Amcis, noting the successful mock FDA audit, and expressed confidence in future integration synergies between Indian and Swiss operations. Debt reduction remains a focus, prioritizing the repayment of higher-cost Indian debt.
Q3 FY26 Financial Highlights
For the quarter ending December 31, 2025, Dishman Carbogen Amcis recorded revenue of INR 720 crores, marking a growth of approximately 5.5% compared to the previous year’s corresponding quarter (INR 682 crores). Management noted that revenue was slightly below internal expectations due to shipment delays caused by supply chain issues and the Christmas holiday season in Europe.
The reported EBITDA for the quarter stood at INR 113 crores, translating to a margin of about 15.7% on the top line. This figure reflected higher commercial supply costs during the quarter compared to the development-heavy first half of the year.
Nine-Month Performance Summary
For the nine months ending December 31, 2025, revenues grew by about 4.3%. The reported EBITDA reached INR 403 crores, resulting in an EBITDA margin of 19.4%, a significant year-over-year growth of 27.3% compared to the 15.9% margin in the first nine months of the previous fiscal year.
Operational Update: Carbogen Amcis
Stephan Fritschi, CEO of Carbogen Amcis, highlighted operational successes, including passing a mock FDA audit at the Vionnaz site in Switzerland. Interest in the French subsidiary (drug product) has increased, securing more RFPs, including in late-phase projects. The joint co-investment expansion project with a Japanese customer remains on track, entering the detailed engineering phase.
The synergy between Dishman (DCAL) and Carbogen Amcis is expanding the portfolio, allowing for large-volume production in India following development in Switzerland. The company is also advancing its SPRINT initiative focusing on non-GMP and early-phase activities.
Segment Performance Breakdown
CDMO Business
The CDMO segment generated revenue of INR 630 crores this quarter, a 6.7% growth over the previous year. The EBITDA margin for the CDMO side, including the French facility, was approximately 17%, compared to 22% in the previous year, largely due to a higher proportion of lower-margin development revenue.
Marketable Molecules
The Marketable Molecules segment revenue was largely flat at INR 90 crores versus INR 92 crores in the prior year. However, the nine-month performance showed a 21.5% increase to INR 330 crores, driven by Vitamin D analogs and cholesterol business. Margins for this segment improved significantly, reaching 17.5% for the nine months, up from 8.3% the previous year, with a target to reach 20% to 25%.
Q&A Insights: India and China Operations
Regarding the India business, management confirmed an ongoing submission of RFPs valued at close to INR 1,200 crores, expecting a 30% to 35% conversion rate into orders. The first target is to achieve INR 500 crores in revenue from India within the next 12 to 18 months, with a longer-term goal of INR 800 crores within three to five years.
In discussions about China versus India manufacturing, executives noted a geopolitical trend favoring manufacturing shifts from China to India, driven partly by concerns over acts like the Biosecure Act. Paolo Armanino emphasized India’s advantage in capacity, talent, and English communication.
Debt Management Strategy
Harshil Dalal outlined the debt strategy, noting a net debt of about CHF 150 million, primarily denominated in Swiss francs. The focus is to aggressively pay down the Indian debt, currently around INR 750 crores, utilizing operational cash flows, as the cost of Indian debt is significantly higher (almost 7% differential) than the Swiss debt. The goal is to make the India debt zero over the next three years.
ADC Business Outlook
On the significant ADC molecule business, management confirmed that their current revenue contribution (linker and payload) is approximately 1.5% of the final product price. For the last financial year, revenue from this molecule was roughly CHF 22 million, expected to reach CHF 30 million this year, and potentially CHF 40 million next year. The second round of co-investment (CHF 25 million) is expected to contribute an incremental CHF 30 million in revenue.
Closing Remarks
Management concluded by expressing strong optimism regarding the diverse, lively business pipeline and the anticipated benefits from the closer integration of their global operations, expecting significant revenue and margin ramps in the coming years.
Source: BSE
