Cohance Lifesciences Limited reported INR 22.68 billion in revenue for FY26, reflecting a 13% year-on-year decline. Despite headwinds from destocking and temporary site disruptions, the leadership highlighted a robust Phase 3 pipeline of 10 programs and a positive outlook for the second half of FY27. New CEO Umang Vohra is focused on enhancing operational rigor, deep-science capabilities in ADCs and oligonucleotides, and strengthening customer relationships to drive future sustainable growth.
FY26 Financial Performance
For the fiscal year 2026, Cohance Lifesciences posted revenue of INR 22.68 billion, with an adjusted EBITDA of INR 4.77 billion and a margin of 21%. The standalone adjusted EBITDA margin stood at 24.6%. Management noted that performance in Q4 and FY26 aligned with previous guidance, impacted by lower volumes and investments. Logistics and raw material cost inflation, stemming from Middle East geopolitical uncertainties, are expected to impact Q1 FY27 gross margins by 100 to 150 basis points.
Segment Breakdown
- Pharma CDMO: Reported revenue of INR 8.89 billion. The segment is supported by over 140 active projects, with commercial products contributing more than 70% of standalone revenues.
- API+: Reported revenues of INR 10.88 billion, declining 8% due to shipment delays and temporary disruptions at the Nacharam site. The company expects recovery as supply execution stabilizes.
- Specialty Chemicals: Reported revenue of INR 2.913 billion, a marginal 2.1% decline, with ongoing focus on agrochemical intermediates and electronic materials.
Strategic Outlook and Future Focus
CEO Umang Vohra emphasized that the company’s immediate priorities include creating a strategic blueprint for growth and sustainable value creation. The firm is actively de-risking by diversifying its customer base and advancing its science engine. Capex of INR 2.15 billion was deployed in FY26, with INR 3 billion projected for FY27 to support advancements in ADC and oligonucleotide capabilities.
Recovery Roadmap
Management anticipates Q1 FY27 to be the low point, with growth expected to return from the second half of the year. Recovery will be driven by the conversion of a strengthened Phase 3 pipeline and improved utilization across the platform. The company remains committed to maintaining high operational standards and scaling niche technologies to ensure long-term value for shareholders.
Source: BSE
