Scrip Symbol: COHANCE

Q1FY27 Financial Performance

Revenue & Profitability:

  • Revenue from operations: ₹4,223 million, down 23.1% year-on-year
  • Gross margins: 71.5% (contracted from 73.0% in Q1FY26)
  • Adjusted EBITDA: ₹92 million
  • Standalone business revenue: ₹3,599 million
  • Standalone adjusted EBITDA: ₹332 million
  • Standalone adjusted EBITDA margin: 9.2%

Business Segment Performance:

  • CDMO business contribution: 38% of total revenue (lower than previous periods)
  • Sapala contribution: Approximately ₹274 million revenue
  • NJ Bio contribution: ₹350 million revenue with adjusted EBITDA loss

Capital & Cash Position:

  • Capital expenditure during quarter: Approximately ₹598 million
  • Consolidated net cash position as of June 30, 2026: Approximately ₹2,512 million

Performance Drivers & Challenges

Revenue Decline Factors:

  • Product mix issues affecting margins
  • Lower contribution from CDMO business due to lumpy nature of business
  • Phasing of orders towards second half of fiscal year
  • Negative operating leverage impact
  • Subsidiary consolidation effects

Operational Metrics:

  • Commercial OTIF (On-Time In-Full) remained at 100% year to date
  • Multiple customer audits across Pharma CDMO and API manufacturing network completed without any critical observations

Strategic Initiatives

Management has acted on two immediate priorities:

1. Building one integrated nucleic-acid business with clear leadership and defined path to full ownership of Sapala

2. Repositioning Agrochemicals towards broader innovator-product-led portfolio

Business Segment Highlights

Pharma CDMO:

  • Two recently commercialized molecules scheduled for delivery across Q2 and Q3
  • Significant restocking order secured for commercial molecule affected by inventory destocking in FY26
  • Delivery visibility for Q4 FY27 and FY28 established

Late-stage Pipeline:

  • One product advanced to Phase III programme
  • Participation expanded in existing fast-track Phase III programme
  • RFQ pipeline strengthened through additional late-stage and commercial enquiries, especially in ADC – payload-linker segments and Oligo

ADCs (Antibody-Drug Conjugates):

  • Execution progressed across payload, payload-linker and bioconjugation programmes
  • Customised payload order on schedule for Q2 delivery
  • Expanded MMAE and Exatecan portfolio seeing encouraging customer interest as innovators diversify supply chains

Nucleic Acids:

  • Shipments commenced under specialised building-block programme supporting orphan-drug candidate
  • R&D, business development, manufacturing and commercial execution being aligned around integrated nucleic-acid offering anchored in Sapala
  • GMP operationalisation and validation of priority amidites in progress

API+ Business:

  • API business remained resilient, supported by pricing and product mix
  • Received validation orders for additional product grades
  • Secured two CEP approvals
  • Filed two Korean DMFs
  • Formulations performance was softer
  • Remediation and operational normalisation at Nacharam continued in-line with plan

Specialty Chemicals:

  • Performance Materials progressed in line with plan
  • Agrochemicals reflected expected H2-weighted phasing
  • Active-ingredient programme advanced into registration
  • Qualification campaigns with Japanese innovators progressed

Awards & Recognition

  • EcoVadis sustainability assessment score progressed from Silver to Gold rating
  • British Safety Council International Safety Award 2026 (Merit) awarded to two API sites and two CDMO sites

Management Commentary

Mr. Umang Vohra, Executive Chairman and Group CEO, stated: "As we had guided, Q1 has been weak on both revenue and EBITDA and would be our lowest quarter ever. The quarter has played out accordingly. From here, we expect improvement in Q2 and a return to year-on-year growth from the second half, supported by secured orders, scheduled deliveries and progress across our late-stage pipeline."

He further emphasized: "Underpinning these actions is the One Cohance culture bringing our scientific capabilities, teams and operating practices together around common standards of safety, quality, accountability and customer focus."

Outlook

  • Expects improvement in Q2 performance
  • Anticipates return to year-on-year growth from second half of FY27
  • Growth supported by secured orders, scheduled deliveries and progress across late-stage pipeline