Cohance Lifesciences (COHANCE) Q3 25/26 earnings summary

Executive summary

• FY26 was a transition year marked by revenue and margin pressure due to timing, product mix, customer inventory normalization, and regulatory issues, with no loss of customers or orders and continued healthy engagement and new wins.

• Leadership and organizational restructuring were completed, with strengthened teams in BD, Quality, Regulatory, R&D, and Operations, and investments in technology-led platforms and compliance.

• The company was awarded EcoVadis Gold, reinforcing governance, compliance, and sustainability credentials.

• Nacharam site disruption led to shipment deferrals of about INR 55 crore, with remediation underway.

• Major mergers were completed, including with Cohance Lifesciences Limited and Casper Pharma Private Limited, with financials restated accordingly.

Financial highlights

• 9MFY26 revenue declined 6.7% year-over-year to INR 16.5 billion, with gross margin improving by 204 bps to 72.8% due to product mix and acquisitions.

• Adjusted EBITDA for 9MFY26 fell 43% to INR 3.48 billion, with margins at 21.1%; standalone margins at 24%.

• Q3FY26 revenue dropped 19.5% year-over-year to INR 5.45 billion; adjusted EBITDA margin at 15.5%.

• Free cash flow of INR 1.75 billion generated in 9MFY26; capex of INR 1.61 billion focused on technology and compliance.

• Standalone Q3FY26 net profit was INR 472.9 million, consolidated net profit INR 290.2 million.

Outlook and guidance

• FY26 revenue outlook revised to an early to mid-double-digit decline due to timing and product mix impacts.

• Growth is expected to resume in FY27, driven by pipeline progress, execution improvements, and capacity commissioning.

• Long-term $1 billion sales target for FY30 remains, though timing may shift slightly.