Cohance Lifesciences slides after weak Q1 earnings

Cohance Lifesciences fell 6.84% to Rs 918.50 after the company reported a sharp drop in profitability for Q1 FY26.

Consolidated net profit (adjusted) stood at Rs 62.9 crore, down 24.8% year-on-year from Rs 83.5 crore in Q1 FY25. Revenue from operations rose 12.5% YoY to Rs 549.3 crore from Rs 488.1 crore, aided by growth across all business segments.

Material margin improved to Rs 401.2 crore, up 20.1% YoY, with margin percentage rising to 73% from 68.4%, driven by a favorable business mix and contribution from recent acquisitions.

Adjusted EBITDA stood at Rs 131.4 crore in Q1 FY26, down 2.4% YoY, with margin contracting to 23.9% from 27.6% a year ago. Reported EBITDA dropped 10.5% YoY to Rs 112 crore.

Adjusted PBT was Rs 84.8 crore, down 25.5% YoY from Rs 113.9 crore in Q1 FY25.

Q1FY26 includes consolidation of Sapala and NJ Bio. The quarter included one-time adjustments for ESOP, legal, and M&A costs of Rs 17.1 crore versus Rs 8.1 crore last year. Exceptional items worth Rs 8.1 crore were booked due to restructuring costs following the merger of the company with erstwhile Cohance Lifesciences.

Niche technology revenues accounted for over 20% of total sales compared to the mid-teens in FY25 and are on track to reach the mid-20s by the end of FY26. Pharma CDMO revenue grew over 30% excluding de-stocking. Specialty Chemicals rose 28% on AgChem recovery and new projects, while API+ grew 19% on strong commercial execution and the ramp-up of new launches.

Vivek Sharma, executive chairman, said: "Q1FY26 has been an important start to the year, with progress not just in execution but in strengthening the foundation we have built. Our growing presence in niche modalities like ADCs and oligonucleotides, combined with a deepening global customer base, positions Cohance for accelerated growth. With strengthened leadership and the guidance of our External Advisory Board, we remain committed to becoming a global technology-led CDMO, delivering long-term value for all stakeholders."

Cohance Lifesciences, formerly Suven Pharmaceuticals, is an innovator-focused global CRDMO formed through the merger of Cohance Life Sciences into Suven Pharmaceuticals.

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