Concord Biotech (CONCORDBIO) investor relations material

Executive summary

• Q1 FY26 revenue declined 5% year-over-year to INR204 crores, attributed to sales lumpiness and high sales in the prior quarter.

• EBITDA and PAT margins fell due to commercialization costs of the new injectable facility, with adjusted EBITDA margin at 37%, consistent with the prior year.

• Gross margin improved by 30 basis points year-over-year, reflecting resilient pricing and market positioning.

• Strategic initiatives included US FDA approval for teriflunomide tablets, successful regulatory inspections, and expansion via Stellen Biotech Inc (US) and Concord LifeGen Limited (India).

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved, with a dividend of Rs. 10.70 per share declared for FY 2024-25.

Financial highlights

• Q1 FY26 consolidated revenue: INR204 crores (down from INR216 crores in Q1 FY25).

• API revenue: INR153.8 crores (down 10% year-over-year); Formulation revenue: INR50.2 crores (up 12% year-over-year).

• EBITDA: INR61 crores (margin 30.1% reported, 37% adjusted); PAT: INR44 crores (margin 21.6%).

• EPS for Q1 FY26: Rs. 4.21, down from Rs. 5.70 in Q1 FY25.

• Dividend of Rs. 10.70 per equity share declared for FY 2024-25.

Outlook and guidance

• Management expects EBITDA margin improvement as the injectable facility ramps up and operating leverage increases.

• CDMO business is anticipated to become a significant growth driver, with medium-term targets of $40–50 million in annual revenue.

• Long-term growth targets include 25% CAGR for consolidated revenue and 35–40% CAGR for formulations.

• Management remains optimistic for FY26 growth, expecting annualized volatility to smooth out.

• Recent US acquisition (Stellon Biotech) has no impact on Q1 FY26 results.