Cohance Lifesciences (COHANCE) Q4 25/26 earnings summary

Executive summary

• FY26 was a transition year marked by a 13% revenue decline to INR 22.68–22.69 billion, impacted by destocking, inventory normalization, shipment delays, regulatory disruptions, and temporary site issues.

• Leadership transition brought a new Executive Chairman and Group CEO, focusing on strategic execution, operational rigor, and global discipline.

• Functional depth and technology platforms were strengthened across business development, R&D, quality, regulatory, and operations.

• Q4 performance aligned with guidance, with recovery and growth expected from the second half of FY27.

• Technology platforms in Small Molecules, ADCs, and Oligonucleotides were enhanced.

Financial highlights

• FY26 revenue was INR 22.68–22.69 billion, down 13% YoY, with adjusted EBITDA at INR 4.77–4.8 billion (21% margin) and standalone margin at 24.6%.

• Gross margin improved to 70.8%, up 209 bps YoY, supported by product mix, backward integration, and INR depreciation.

• Free cash flow generated was INR 1.73 billion; cash on books at INR 3.22 billion.

• CapEx for FY26 was INR 2.15–2.515 billion, focused on facility expansions, ADC, oligonucleotides, and infrastructure.

• One-time expenses included inventory provision of INR 195 million, customer adjustments of INR 126 million, and a one-time customer settlement of INR 165 million.

Outlook and guidance

• FY27 is expected to be a growth year, with recovery and EBITDA improvement visible from 2H; Q1FY27 anticipated as the low point for revenue and EBITDA.

• Growth to be driven by execution on existing programs, customer conversions, improved utilization, and reloads.

• CapEx spend for FY27 projected at nearly INR 3 billion.

• All business segments expected to recover strongly in H2 FY27, with order book and pipeline skewed towards the second half.