Concord Biotech released its investor presentation, highlighting key developments in Q2 & H1 FY26. The company secured multiple regulatory approvals, ensuring business continuity and global market penetration. They are also in advanced discussions with innovator companies for generic API supplies. While facing some sales postponements due to external factors, unit economics remain on an improving trend. They anticipate recovering sales momentum in the current quarter following recent regulatory approval.
Key Regulatory Approvals
Concord Biotech has obtained crucial regulatory approvals for its manufacturing sites, ensuring consistent supplies and enhancing global market reach:
- US FDA Establishment Inspection Report (EIR) received for the Dholka facility.
- EU GMP inspection successfully completed at the Dholka facility.
- Russian GMP inspection completed at the API facility in Dholka.
- NAFDAC inspection completed for the Oral Solid Dosage Unit-2 in Valthera.
- EU GMP inspection completed at the Limbasi manufacturing facility.
Financial Performance Highlights
The consolidated financial results for Q2 & H1 FY26 reveal the following (all figures in Indian Rupees Crores):
- Revenue: Q2: 247.1, H1: 451.1
- EBITDA: Q2: 88.5, H1: 149.9
- PAT: Q2: 63.1, H1: 107.1
- Gross Profit Margin: Q2: 80.2%
- EBITDA Margin: Q2: 35.8%
- PAT Margin: Q2: 25.5%
The revenue was impacted due to delays in Written Confirmation, tariff situations, and hold of government tenders, but no business opportunity was lost. The company is working towards recouping sales in subsequent quarters. The EBITDA was impacted by expenses related to the new injectable facility at Valthera.
Segment-wise Revenue Split
- API: Q2 contributes 26%; H1 contributes 23%.
- Formulation: Q2 contributes 74%; H1 contributes 77%.
Geographical Revenue Split
- Domestic: Q2 contributes 53%; H1 contributes 55%.
- Exports: Q2 contributes 49%; H1 contributes 45%.
Key Developments
- Advanced discussions underway with innovator companies for generic API supplies.
- Increase in second source qualification initiatives.
- Uptick in Injectables revenues.
- Two pipeline products are expected to be commercialized within the next 6 months.
- Invested in Cellimmune Biotech Limited for cell and gene therapy advancements.
Source: BSE
