Concord Biotech reports revenue decline amid operational headwinds

Concord Biotech Limited reported a revenue of Rs. 247 Crs for Q2 FY26, a 20% decline year-over-year, and Rs. 451.1 Crs for H1 FY26, down 14% from H1 FY25. This was attributed to delays in Written Confirmation from CDSCO for European Union supply, uncertainties affecting US customer procurement, and a deferred government contract in the Middle East due to regional conflicts. Despite these challenges, gross profit margin improved to 80.2% in Q2 FY26 from 75.4% in Q2 FY25.

EBITDA for Q2 FY26 stood at Rs. 88 Crs, a 35% decrease year-over-year, while H1 FY26 EBITDA was Rs. 149.9 Crs, down 31% from H1 FY25. The EBITDA margin was 35.8% for Q2 FY26. Excluding expenses related to the commercialization of its new injectable facility in Valthera, the EBITDA margin would have been 41%, consistent with Q2 FY25. PAT for Q2 FY26 was Rs. 63 Crs, reflecting a 34% decrease, and H1 FY26 PAT was Rs. 107 Crs, a 31% decline from the previous year.

The company secured multiple regulatory approvals, including an Establishment Inspection Report (EIR) from the US FDA for its Dholka facility, EU GMP inspections for Dholka and Limbasi, Russian GMP, and NAFDAC inspection for its Oral Solid Dosage Unit-2 facility in Valthera, ensuring continued global market access. Two pipeline products are expected to be commercialized within the next six months.