Cohance Lifesciences (COHANCE) Q2 25/26 earnings summary

Executive summary

• Transitioned to capability amplification with a revised structure, three business verticals, and experienced leadership, while completing major mergers and rebranding as Cohance Lifesciences.

• Strengthened leadership, expanded R&D, and deepened execution bandwidth across India, US, and Europe.

• Achieved US FDA approval for a late-phase respiratory molecule and executed a large Phase II order, enhancing CDMO credibility.

• Global CDMO demand remains strong, with India benefiting from supply chain diversification and rational pricing.

• Facing challenges from shipment delays, plant shutdowns, and biotech funding slowdown, but production has resumed and early signs of recovery are visible.

Financial highlights

• Q2FY26 revenue: INR 5,556 million, down 8% YoY due to deferred shipments and destocking; adjusted for restocking, Q2 grew 14% YoY; H1FY26 revenue: INR 11,049 million, up 1.2% YoY.

• Gross margin for Q2FY26: 74.6% (vs. 71.3% last year); H1FY26: 73.8% (vs. ~70% last year).

• Adjusted EBITDA for Q2FY26: INR 1,289 million (23.2% margin); H1FY26: INR 2,630 million (23.8% margin).

• Net profit for H1FY26: INR 1,127.9 million (₹112.79 crore); Q2FY26: INR 663.9 million (₹66.39 crore).

• Free cash flow in H1FY26: INR 1.69 billion; cash on hand: INR 3.91 billion.

Outlook and guidance

• FY26 revenue expected to be broadly flat versus FY25 due to shipment deferrals, plant issues, and biotech funding headwinds.

• H2FY26 anticipated to be stronger than H1, driven by deferred shipments, new program activations, and regulatory normalization.

• Mid- to long-term guidance maintained: $1 billion revenue target by 2030 with mid-30% EBITDA margin.

• FY27 expected to see growth rebound, supported by new wins and restocking.