Cohance Lifesciences (COHANCE) Q3 24/25 earnings summary

Executive summary

• Achieved 40% year-on-year revenue growth in Q3 FY25 and 5% year-on-year for the nine months, driven by robust demand, strategic acquisitions in niche technology markets, and a focus on differentiated modalities like ADCs and oligonucleotides.

• Expanded global footprint and capabilities through acquisitions of Sapala (oligonucleotide chemistry) and NJ Bio (Antibody-Drug Conjugates), enhancing technology leadership and increasing addressable market.

• Strengthened R&D, commercial presence in US, EU, and Japan, and streamlined operations to support long-term growth, targeting $1bn revenue.

• Recognized as one of the World's Best Companies for Sustainable Growth 2025 by TIME and Statista.

• Merger with Cohance Lifesciences received 99.99% shareholder approval; final regulatory steps pending, with effectiveness expected Q1FY26.

Financial highlights

• Q3FY25 revenue: INR 6.8bn (+40% YoY); adjusted EBITDA: INR 2.6bn (38.7% margin); adjusted PAT: INR 1.7bn (24.8% margin); gross margin at 71.5%.

• 9MFY25 revenue: INR 17.7bn (+4.7% YoY); adjusted EBITDA: INR 6.15bn (34.8% margin); adjusted PAT: INR 3.98bn (22.5% margin); gross margin at 70.2%.

• CapEx investment of INR 2.31bn in 9MFY25, focused on capacity expansion and scaling cGMP facilities.

• Free cash flow for 9MFY25 was INR 3.2bn; cash & bank balance at INR 2.99bn.

• Adjusted EBITDA and PAT figures exclude one-time ESOP and M&A costs.

Outlook and guidance

• Reaffirmed FY25 guidance for year-on-year growth and expects accelerated growth in FY26, targeting $1bn revenue.

• Growth pillars include deepening global customer relationships, expanding leadership in ADCs and oligonucleotides, and leveraging differentiated technology platforms.

• API+ and Specialty Chemicals segments expected to sustain growth, supported by new product launches and market recovery.

• Continuous new product development and pipeline expansion to fuel long-term growth.