Cohance Lifesciences (COHANCE) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 was the first full quarter post-integration and rebranding, with a focus on technology-led global CDMO growth, integration of acquired platforms, and strengthened leadership including a new CEO for CDMO and an External Advisory Board of global pharma leaders.

• Revenue vision set at USD 1 billion (INR 85 billion) by 2030, with ongoing investments in talent, R&D, and sustainability.

• Niche technology revenues exceeded 20% of sales, with strong traction in ADCs, oligonucleotides, and high-containment APIs.

• Free cash flow of INR 2.32 billion generated; cash on books at INR 4.41 billion; capex of INR 559 million focused on facility expansion.

• Major mergers and acquisitions completed, including Sapala Organics and NJ Bio Inc, with financials restated for prior periods.

Financial highlights

• Q1 FY 2026 revenue grew 13% year-over-year to INR 5,493 million; adjusted for inventory destocking, Pharma CDMO growth exceeded 30% YoY.

• Gross margin expanded to 73% from 68.4% YoY; adjusted EBITDA margin at 23.9%; adjusted PAT at INR 629 million (11.4% margin).

• Segmental revenue: Pharma CDMO 37%, API+ 54%, Specialty Chemicals 9%.

• Free cash flow of INR 2.32 billion generated; net cash position of INR 2.44 billion as of Q1FY26.

• Capex spend at 10.2% of sales for the quarter, mainly for Nacharam facility expansion.

Outlook and guidance

• FY 2026 and long-term guidance reaffirmed, targeting USD 1 billion (INR 85 billion) revenue by 2030 and mid-30s EBITDA margin.

• Niche technology share expected to reach mid-20s percent by end of FY26.

• Capacity expansions at Nacharam (oligonucleotides) and ADC sites expected to be operational by end of calendar year and early next year.

• API+ segment expects early double-digit growth for FY26, with 5 new products to be commercialized.

• Specialty Chemicals growth to continue as AgChem cycle recovers; OLED shipments to ramp in Q2.