Cohance Lifesciences (COHANCE) Q3 25/26 earnings summary

Executive summary

• FY26 was a transition year marked by leadership changes, portfolio mix shifts, customer inventory normalization, and regulatory issues, resulting in performance below expectations.

• No customers were lost or orders canceled; customer engagement and order metrics remained healthy.

• Management remains committed to long-term growth targets, including the $1 billion sales goal by FY 2030, though timing may shift.

• Technology-led platforms remain differentiated, with current softness attributed to timing and product mix, not structural issues.

• Board approved unaudited financial results for Q3 and 9MFY26, reflecting post-merger and leadership transition.

Financial highlights

• 9MFY26 revenue declined 6.7% year-on-year to INR 16.5 billion; Q3FY26 revenue dropped 19.5% to INR 5,446 million.

• Gross margin improved by 204 bps to 72.8% year-on-year, aided by product mix and acquisitions.

• Adjusted EBITDA for 9MFY26 fell 43% to INR 3.5 billion, with margins at 21.1%; Q3FY26 Adjusted EBITDA margin at 15.6%.

• Free cash flow of INR 1.75 billion generated in 9MFY26; cash on books at INR 4.32 billion.

• Standalone Q3FY26 net profit was INR 47.29 crore; consolidated net profit was INR 29.02 crore.

Outlook and guidance

• FY26 revenue outlook revised to early-to-mid double-digit decline due to timing and regulatory effects.

• Management expects a return to growth in FY27, driven by pipeline recovery, execution improvements, and new capacities.

• FY27 anticipated as a transition year with stronger momentum post-qualification conversions; management remains cautious on specific guidance.