Cohance Lifesciences (COHANCE) Q2 26/27 earnings summary

Executive summary

• Q2FY27 revenue rose 12.9% QoQ to INR 4,766 Mn but fell 14.2% YoY; adjusted EBITDA margin improved to 9.6% from 2.2% in Q1.

• H1FY27 revenue declined 18.6% YoY to INR 8,989 Mn and adjusted EBITDA fell to INR 551 Mn; H2 is expected to deliver YoY revenue and EBITDA growth.

• The Suryapet facility received a closure order after a fatal accident; operational and financial impact remains under assessment.

Financial highlights

• Q2FY27 adjusted EBITDA was INR 459 Mn at a 9.6% margin, versus INR 1,288 Mn and 23.2% a year earlier; adjusted PAT was INR 74 Mn versus INR 709 Mn.

• Q2 reported net profit was ₹2.27 crore versus ₹66.39 crore a year earlier; H1 reported net loss was ₹42.92 crore versus profit of ₹112.79 crore.

• H1FY27 adjusted EBITDA was INR 551 Mn at a 6.1% margin, versus INR 2,629 Mn at 23.8%; adjusted PAT was a loss of INR 355 Mn.

• Q2 material margin was 70.8%, down 377 bps YoY; H1 gross margin was 71.1% versus 73.8%, reflecting mix and lower AgChem contribution.

• Q2 revenue was ₹476.65 crore; standalone Q2 revenue was ₹416.69 crore with net profit of ₹13.27 crore.

Outlook and guidance

• H2FY27 revenue and EBITDA are expected to grow YoY and exceed H1, supported by Small Molecule deliveries, API+ resilience, Sapala growth, utilisation and improved mix.

• Small Molecule Q3/Q4 order visibility and reloads improved; first deliveries from new commercial programmes are expected in Q4 FY27 or Q1 FY28.

• FY27 Specialty Chemicals revenue is expected to decline YoY, versus the prior broadly flat outlook; newer programmes will not offset near-term pressure.