Financial Performance Highlights

Q4 FY26 Performance:

  • Revenue: INR 851 crore, representing 19% YoY growth (Q4 FY25: INR 716 crore)
  • CDMO Segment Revenue: INR 690.8 crore, 21% YoY growth (Q4 FY25: INR 569 crore)
  • Marketable Molecules Segment Revenue: INR 160.5 crore, 9.3% YoY growth (Q4 FY25: INR 146.9 crore)
  • EBITDA: INR 163 crore with 19.1% margin
  • Depreciation & Amortization: INR 88.79 crore
  • Finance Cost: INR 43 crore
  • Profit Before Tax: INR 46 crore
  • Tax Expense: INR 24 crore (elevated due to subsidiary losses)
  • Profit After Tax: INR 21.7 crore

Full Year FY26 Performance:

  • Revenue: INR 2,932 crore, 8% YoY growth (FY25: INR 2,711 crore)
  • CDMO Segment: 83% of revenue, INR 2,441 crore (6.5% growth)
  • Marketable Molecules Segment: INR 490.65 crore (17% growth)
  • EBITDA: INR 565 crore with 19.3% margin (200 bps improvement from FY25's 17.3%)
  • Finance Cost: INR 174 crore (FY25: INR 159 crore)
  • Profit Before Tax: INR 104.9 crore (FY25: INR 19.3 crore)
  • Profit After Tax: INR 97.4 crore (FY25: INR 3.2 crore)

Segment-wise Margin Analysis

  • CDMO Q4 Margin: 18.7% (Q4 FY25: 23.9%) - lower due to mix of commercial vs Phase 3 projects
  • Marketable Molecules Q4 Margin: 21.1% (940 bps improvement due to Vitamin D analogs and supplier optimization)
  • Full Year Marketable Molecules Margin: 18.8%

Capital Structure and Debt

  • Net Debt (ex-lease liabilities): CHF 146.8 million (FY25: CHF 157.6 million) - reduced by CHF 11 million
  • CapEx FY26: CHF 22.4 million
  • India Debt: ~INR 800 crore at 10.5-11% interest cost

Strategic Financing Initiative

Board approved (subject to shareholder approval) long-term ECB from promoter entity:

  • Tenure: 10 years
  • Purpose: Refinance high-cost Indian debt, working capital, and CapEx requirements
  • Benefits: Estimated 7% interest cost reduction, unsecured nature freeing up collateral, flexibility in repayments
  • Expected Timing: Q2/Q3 FY27 implementation
  • Impact: Interest cost reduction to INR 30-35 crore per quarter (from current ~INR 43 crore)

Operational Updates

Technology Transfer:

  • Key molecule (CHF 20-25 million annual revenue) transferring from Swiss entity to India
  • Expected margin improvement of 20-25% at group level despite customer discounts
  • Phase-wise implementation expected

ADC Business:

  • Strong performance with >30 commercial products
  • ADC linker-payload demand remains strong with high margins (potentially double consolidated margins)
  • FY26 ADC contribution: ~25% of CDMO business
  • Purchase orders in hand for FY27/FY28
  • Co-investment with Japanese innovator ongoing

India Business Scale-up:

  • Target: INR 500 crore revenue by FY28 (current: ~INR 220 crore)
  • Multiple RFPs in pipeline with ~30-35% conversion expectation
  • Regulatory inspections scheduled for current/next month
  • Expected 25% growth in FY27

French Subsidiary:

  • FY26 Revenue: EUR 8 million
  • FY26 Loss: EUR 9 million (EBITDA level)
  • FY27 Outlook: Revenue EUR 11-12 million, loss reduction to EUR 6 million
  • Breakeven target: FY28

Tax Outlook

  • Current elevated tax rate due to losses in France, Shanghai, and India entities
  • Expected progression: FY27 ~40%, FY28 ~30%, long-term 15-20%
  • Swiss entity tax rate: ~15%, Dutch entity: ~25%

Foreign Exchange Impact

  • CHF depreciation affecting INR translation of financials
  • Natural hedge exists as foreign currency debt offsets foreign currency revenues
  • No hedging planned for proposed ECB

Goodwill Movement

  • Increased from INR 4,053.56 crore (Mar'25) to INR 4,798 crore (Mar'26)
  • Entirely due to foreign exchange fluctuation, no additions

Future Guidance

  • Revenue CAGR: 15% over next 3 years
  • EBITDA Margin Target: 25% by FY28
  • Net Debt Reduction Target: CHF 10-15 million annually (~INR 150 crore)
  • Segment Mix Target: 85% CDMO, 15% Marketable Molecules

Conference Participants

  • Harshil Dalal - Global CFO
  • Stephan Fritschi - CEO, Carbogen Amcis entities
  • Paolo Armanino - COO