Concord Biotech navigates Q2 challenges, forecasts H2 recovery despite revenue dip

Concord Biotech Limited recorded Q2FY26 revenues of INR 247 crores and H1FY26 revenues of INR 451 crores, marking a 20% year-on-year decline in Q2 but 21% quarter-on-quarter growth. This subdued performance is attributed to delays in Written Confirmations impacting EU sales, deferment of a Middle East government tender, and shifts in procurement from US customers due to tariff uncertainties. The company expects to mitigate these timing-related impacts in H2.

EBITDA for Q2FY26 stood at INR 88 crores, with H1FY26 EBITDA at INR 150 crores. The Q2 EBITDA margin was 36%, which would have been 41% excluding initial start-up costs from the new injectables facility. Profit after tax for Q2FY26 was INR 63 crores, with H1FY26 at INR 107 crores, resulting in a PAT margin of 24%. The company also highlighted successful regulatory inspections across its facilities and received USFDA approval for Teriflunomide Tablets.

Strategic initiatives include the incorporation of Stellon Biotech Inc. to bolster its U.S. market presence and Concord Lifegen Limited to strengthen domestic marketing. The company also invested in Cellimmune Biotech Limited, focusing on CAR-T cell therapy development for the Indian market, with future global partnership potential. Direct U.S. revenue for the quarter was 7% of total revenue, with ex-U.S. exports contributing 38%.