Dishman Carbogen Amcis has received approval from its debenture trustee for a waiver of specific financial covenants for the financial year ending March 31, 2026. This decision follows a request from the company due to temporary operational challenges and geopolitical impacts affecting its standalone performance. The waiver applies to key leverage and coverage ratios, providing the company with financial flexibility as it continues to execute its growth strategy across global operations.
Financial Covenants Adjustment
The company announced that it has obtained a formal waiver from Axis Trustee Services Limited regarding specific financial benchmarks for its non-convertible debentures (NCDs) under ISIN INE385W07059. The amendments pertain to the financial year concluding on March 31, 2026. While the Net Debt to Tangible Net Worth ratio remains unchanged at 1.75 times, waivers have been granted for the Total Net Debt to EBITDA (previously 4 times), Adjusted Debt Service Coverage Ratio (previously at least 1.15x), and Interest Coverage Ratio (previously at least 2x).
Operational Rationale
The decision to seek these waivers stems from a challenging standalone performance environment. The company cited global geopolitical tensions, trade tariffs, and supply chain disruptions as primary factors impacting its operations. These external pressures led to customer-side delays in product off-take and rescheduled deliveries, effectively impacting the short-term financial performance. Additionally, the company noted that currency exchange fluctuations contributed to notional translation losses and temporary pressure on its EBITDA margins.
Future Outlook and Performance
Despite the standalone challenges, the company reports a strong consolidated performance. Revenue for the first nine months of the fiscal year reached ₹20,805 million, marking a 4.3% year-on-year growth. The CDMO segment and Marketable Molecules division have shown resilience, with the latter reporting a 21.5% growth in revenue. Moving forward, the company is actively securing new contracts and managing a robust pipeline of Request for Quotations (RFQs), anticipating a strong recovery and growth trajectory in the upcoming fiscal year.
Source: BSE
