Cohance Lifesciences projects flat FY26 revenue amid challenges

Cohance Lifesciences Limited (formerly Suven Pharmaceuticals Limited) reported revenue of INR5,556 million for Q2 FY26, an 8% year-on-year decline primarily due to deferred shipments and molecular restocking. When adjusted for restocking, the quarter showed a 14% year-on-year growth. The material margin improved to 74.6% from 71.3% in the same quarter last year, driven by business mix and efficiency gains. Adjusted EBITDA for Q2 stood at INR1,289 million, with a margin of 23.2%, reflecting lower volumes and upfront investments.

For the first half of FY26, revenue was INR11,049 million, a 1% year-on-year growth (20% adjusted for restocking). Adjusted EBITDA for H1 was INR2,630 million (23.8% margin), and adjusted PAT was INR1,302 million (12% margin). Free cash flow generated INR1.69 billion in H1, with cash on books at INR3.91 billion. Capex of INR1.06 billion was deployed, focusing on high-potent and linked chemistry, oligonucleotide scale-up, and API/specialty chemicals. Adjusted ROCE for H1 was 21.7%.

The revised FY26 guidance projects flat revenue versus FY25, citing ongoing challenges such as commercial product destocking, biotech funding winter impact on NJ Bio, temporary FDF Nacharam unit impact, and agchem new product approval delays. Management expects H2 to be stronger than H1, driven by deferred shipments, new program activations, and regulatory normalization. The company aims for growth in FY27 and maintains its mid-term guidance of US$1 billion revenue with mid-30s EBITDA margin.