Cohance Lifesciences announced its Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended December 31, 2025 (Q3 FY26). The company highlighted a transition year marked by a 6.7% revenue decline in 9MFY26 to ₹16.5 billion, though gross margins improved to 72.8%. The Board also approved revisions to authorized Key Managerial Personnel under new policy frameworks, effective immediately.
Q3 and 9M FY26 Financial Performance Overview
Cohance Lifesciences (formerly Suven Pharmaceuticals Limited) released its financial results for the third quarter and nine months ended December 31, 2025. The Board meeting concluded on February 12, 2026, approving these results and related disclosures.
9MFY26 Consolidated Highlights:
- Total Revenue saw a decline of 6.7% YoY, standing at ₹16.5 billion.
- Gross Margins significantly improved to 72.8%, a YoY increase of 204 basis points, driven by product mix and subsidiary consolidation.
- Adjusted EBITDA declined by 43.4% to ₹3,477 million, resulting in Adjusted EBITDA margins of 21.1%. (Standalone margins were 24.2%).
- Adjusted Profit After Tax (PAT) declined by 61.4% to ₹1,513 million, with an Adjusted PAT margin of 9.2%.
- The company demonstrated sturdy cash generation, with ₹1.75 billion in Free Cash Flow generated during the quarter, leading to a net cash position of ₹1.759 billion as of December 31, 2025.
Q3FY26 Consolidated Performance:
- Operational Revenue declined by 19.5% YoY to ₹5,446 million.
- Adjusted EBITDA margin for the quarter stood at 15.6%, down from 38.8% in Q3FY25.
- Adjusted PAT was ₹211 million, yielding a margin of 3.9%.
Key Business Performance Updates
Pharma CDMO: Navigating Near-Term Challenges
The Pharma CDMO segment (39% of Sales in 9MFY26) experienced softness due to customer-led inventory adjustments, delayed off-takes, and moderation in mature commercial products. The segment’s underlying growth, excluding de-stocking effects, remained in the high double digits. The commercial pipeline includes 9 Phase III molecules, with 4 expected to enter commercial supply over the next 12–18 months.
ADC and Oligos: Long-Term Outlook Intact
The ADC platform continues with an exclusive payload intermediate supply to a major innovator, supported by a USD 10 million US-based cGMP expansion expected to enable supply up to Phase 2b by FY27. The Oligonucleotides building-block facility at Nacharam is nearing operationalisation.
Specialty Chemicals and API+
- Specialty Chemicals revenue grew strongly by 31.6% YoY (12% of Sales in 9MFY26), with efforts focused on extending chemistry platforms into semiconductor processing.
- API+ (49% of Sales) saw a 7.9% YoY decline due to shipment delays and regulatory remediation impacts at the Nacharam FDF plant, though the Q4 order book is healthy.
Organizational and Governance Updates
Leadership and Execution Focus
The company emphasized that FY26 is a transition year, stabilizing leadership and execution discipline. Core execution teams are shifted from restructuring to execution, focusing on RFP conversions and commercial scale-up. The management anticipates a return to revenue growth in FY27.
Governance Achievements
Cohance achieved a Gold rating in the EcoVadis Sustainability assessment and secured a B rating in CDP Climate Change. Remediation actions at the affected facility are well underway, while OTIF performance remains above 95% across commercial supplies.
Key Personnel Changes
The Board approved revisions to the authorized Key Managerial Personnel, effective February 12, 2026, naming Mr. Vivek Sharma (Executive Chairman) and Mr. Himanshu Agarwal (Whole-time Director and Chief Financial Officer) as key contacts.
Source: BSE
