Cohance Lifesciences (COHANCE) Q4 23/24 earnings summary

Executive summary

• Organizational build-out across Commercial, R&D, Operations and M&A supported stronger customer engagement amid China+1 and Europe+1 tailwinds.

• RFQ inflows rose 2.3x YoY; Phase III pipeline expanded to 7 molecules and 13 intermediates, with 100+ active Phase I–III projects.

• Pro forma FY24 combined revenue was INR 23,922 Mn, adjusted EBITDA INR 8,534 Mn at 35.7% margin, and adjusted PAT INR 5,738 Mn.

Financial highlights

• FY24 consolidated revenue was Rs 1,05,135.37 lakhs and net profit Rs 30,028.06 lakhs, down from Rs 1,34,032.88 lakhs and Rs 41,129.03 lakhs.

• Q4 consolidated revenue was Rs 25,293.04 lakhs and net profit Rs 5,337.32 lakhs, versus Rs 36,935.62 lakhs and Rs 12,397.13 lakhs in Q4 FY23.

• FY24 adjusted EBITDA was INR 4,350 Mn, down 26.0%, at 41.4% margin; adjusted PAT was INR 3,194 Mn, down 20.4%, at 30.4% margin.

• Q4 adjusted EBITDA was INR 866 Mn at 34.2% margin; adjusted PAT was INR 624 Mn, both down 50% or more YoY.

• Pro forma combined FY24 revenue declined 10.7% to INR 23,922 Mn; adjusted EBITDA was INR 8,534 Mn at 35.7% margin and adjusted PAT INR 5,738 Mn at 24.0% margin.

Outlook and guidance

• FY25 revenue and EBITDA are expected to grow versus FY24, with recovery anticipated in H2 FY25 and growth acceleration in FY26.

• The combined platform aims to double over 5 years, with M&A expected to provide additional growth.

• Higher RFQs, late Phase III enquiries and under-patent commercial product enquiries support Pharma CDMO growth expectations.

• API++ is expected to return to double-digit growth, supported by product validations and business development.