Cohance Lifesciences Limited – Investor Presentation Summary

Scrip Code/Symbol: COHANCE

Key Operational Highlights

  • Q1 FY27 revenues stood at INR 4,223 Mn, a decline of 23.1% YoY
  • Niche technology share contributed 15.1% of revenues
  • API+ segment declined 10.4% YoY due to timing-related factors
  • Specialty Chemicals revenue declined by 34.7% YoY
  • Sapala revenue growth was 2.5x YoY
  • 140+ active projects across the Pharma CDMO portfolio
  • Two molecules moved into commercial supply with deliveries scheduled across Q2 and Q3 FY27
  • Three payload-related Drug Master Files filed during FY26
  • Five GMP bioconjugation batches completed at NJ Bio

Key drivers of operational performance: Shipment phasing in Pharma CDMO, softer contribution from Agrochemicals, lower Formulations revenue, timing of execution across parts of the portfolio, strong growth at Sapala, resilient API performance

Segment-wise Performance

  • CDMO (Pharma CDMO + Specialty Chemicals): 38% share of revenue, all business segments witnessed revenue decline
  • API+: Declined 10.4% YoY due to timing-related factors including shifted commercial orders and validation campaigns, operational event at customer facility, lower volumes in select parts of portfolio
  • Specialty Chemicals: Declined 34.7% YoY primarily led by expected H2 dominated phasing of products in AgChem
  • Pharma CDMO: Affected by customer shipment phasing with some deliveries moved from Q1 into Q2

Explanation of significant changes in segment performance: Revenue decline across segments due to shipment phasing, unfavorable product mix, timing of execution, and subsidiary consolidation impacts

Financial Highlights

Revenue: Rs. 4,223 Mn

EBITDA (Adjusted): Rs. 92 Mn

PAT (Adjusted): Rs. (430) Mn

EPS: Not specified

Margins:

  • Gross margins: 71.5% (contracted 150 bps YoY)
  • EBITDA margin (Adjusted): 2.2%
  • PAT margin (Adjusted): -10.2%
  • Standalone Adjusted EBITDA margin: 9.2%

YoY/QoQ comparison:

  • Revenue decline of 23.1% YoY
  • Adjusted EBITDA decline from Rs. 1,341 Mn to Rs. 92 Mn YoY
  • Adjusted PAT decline from Rs. 592 Mn to Rs. (430) Mn YoY

Drivers of financial performance: Lower revenue base, negative operating leverage, impact of subsidiary consolidation (NJ Bio made EBITDA loss of Rs. 328 Mn), product mix, higher freight, logistics and raw-material costs

Comparison to market estimates: Not specified

Key Risks: Raw material price hikes, operational events at customer facilities, timing-related execution challenges

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: Not specified

Balance Sheet Snapshot

Net Debt/Equity: Net cash positive position of Rs. 2,512 Mn

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics:

  • Net Working Capital (as days of sales): 141 days
  • Net Debt to adjusted EBITDA: 0.71x times
  • ROCE: 6.3%
  • ROE: 3.3%

Financial Health Insights: Healthy cash generation with free cash flow of INR 1,063 Mn, cash on books stood at INR 4,589 Mn, maintaining healthy liquidity position, disciplined capital allocation approach

Capex & Cash Flow Health

Capital Expenditure: INR 598 Mn deployed in Q1 FY27

Free Cash Flow: Rs. 1,063 Mn generated during the quarter

Operating Cash Flow: Not specified

Net Debt Movement: Gross borrowings increased to INR 2,077 Mn, net cash position of INR 2,512 Mn

Investment Rationale: Investing in capabilities required for future growth, including capacity expansion across key growth platforms

Strategic & R&D Initiatives

Investments in Innovation: Building one integrated nucleic-acid business with clear leadership path to full ownership of Sapala, repositioning Agrochemicals towards broader innovator-product-led portfolio, expanding ADC payloads and linkers portfolio, developing electronic and semiconductor-linked opportunities

Expected impact on growth: Sapala's FY27 growth outlook extremely strong with confirmed orders in hand from global innovators, ADC payloads and linkers expected to strengthen late-stage pipeline

Strategic Rationale: Unifying R&D, business development, manufacturing and commercial execution across nucleic-acid platform, expanding into high-growth markets like oligonucleotide and nucleic acid building blocks

Industry Trends & Business Environment

Macro/Industry Trends: Growing oligonucleotide and nucleic acid building blocks sector, demand for complex Amidite and nucleoside building blocks, customer preference for end-to-end integrated nucleic-acid offerings

Impact on Company: Driving strategic acquisition and integration of Sapala Organics, expanding capabilities across nucleic-acid value chain

Management Commentary & Growth Outlook

Strategic Outlook: Sequential improvement expected from Q2, growth expected to return during H2 FY27, growth supported by recovery in Pharma CDMO, order-backed growth in Sapala, stability in API+ and normalisation in formulations

FY Guidance: EBITDA improvement expected to be weighted towards second half, supported by volume recovery, better product mix and improved utilization across platform

Market Share Targets: Top 3 player in 8 out of 10 top molecules in API portfolio

Risks and Opportunities: Focus on customer conversion, predictable delivery, quality, safety and better utilization across Cohance platform

ESG Updates

  • CDP: B rating (Climate Change), A- rating (Water Security)
  • EcoVadis Gold Rating
  • British Safety Council International Safety Award 2026 (Merit) awarded to two API sites and two CDMO sites
  • Science-Based Targets validated by SBTi Services (approved 24 July 2026)
  • Net-zero greenhouse gas emissions committed across full value chain by 2050
  • 7 MWp Solar Power Plant commissioned at Ankleshwar, Gujarat
  • Targets 90.0% reduction in Scope 1, 2, and 3 GHG emissions by FY2050 compared to FY2025 levels