Cohance Lifesciences Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 12, 2026. The company reported a decline in annual revenue, attributed to customer-led inventory normalisation and regulatory disruptions, while maintaining a healthy liquidity position.

FY26 Consolidated Financial Performance

Cohance Lifesciences reported consolidated revenue from operations of INR 22,686 Mn for FY26, a decline of 13.0% year-on-year. The company attributed the revenue pressure to customer-led inventory normalisation in two large commercial products, product-specific challenges in the API business, and pricing pressure in the Specialty Chemicals segment. Material margins improved to 70.8%, up 209 basis points year-on-year, supported by product mix, subsidiary consolidation, and INR depreciation. Adjusted EBITDA for FY26 stood at INR 4,775 Mn with margins at 21.0%, while standalone Adjusted EBITDA margins were higher at 24.6%.

Q4 FY26 Performance

For the fourth quarter of FY26, consolidated revenue from operations was INR 6.2 Bn, down against INR 8.4 Bn in Q4 FY25. Reported EBITDA for Q4 FY26 stood at INR 985 Mn compared to INR 2.3 Bn in Q4 FY25, with reported EBITDA margins contracting to 15.92% from 27.27% in the prior-year quarter. On an adjusted basis, EBITDA for Q4 FY26 was INR 1,298 Mn with adjusted margins at 21.0%, compared to INR 2,635 Mn and 31.4% margins in Q4 FY25. Consolidated net profit for Q4 FY26 came in at INR 195 Mn against INR 1.2 Bn in Q4 FY25.

Standalone Financial Highlights

On a standalone basis, Cohance Lifesciences reported net profit after tax of ₹228.71 crores for FY26, compared to ₹491.18 crores in FY25. Standalone revenue from operations was ₹2,030.50 crores for FY26. Basic and diluted earnings per share (EPS) on a standalone basis stood at ₹5.98 and ₹5.97 respectively for FY26, against ₹12.89 (basic) and ₹12.80 (diluted) in FY25.

Cash Flow and Balance Sheet

Cohance Lifesciences generated free cash flow of INR 1.73 Bn during FY26, with cash on books standing at INR 3.22 Bn. Capital expenditure deployed during the year stood at INR 2.15 Bn, directed primarily towards the Oligo Nacharam facility expansion, Suryapet capacity expansion, and high-containment capability upgrades including Parawada, Vizag.

Business Segment Performance

The Pharma CDMO segment reported revenue of INR 8.89 billion for FY26. Adjusting for the destocking impact in two large commercial molecules, the business delivered underlying growth of early single digits. Commercial products contributed more than 70% of standalone Pharma CDMO revenues. The Phase III pipeline stands at 10 programmes, with two products progressing towards early commercialisation. The API+ segment, accounting for 48% of sales, reported revenues of INR 10.88 billion, declining 8.0% year-on-year due to shipment delays and regulatory remediation at the Nacharam formulation plant. The Specialty Chemicals segment reported revenue of INR 2.913 billion, declining marginally by 2.1% year-on-year.

Management Commentary and Outlook

Management stated that growth is expected to return from the second half of FY27 onwards, with Q1 FY27 anticipated to be the low point for both revenue and EBITDA. EBITDA improvement in the second half is expected to be driven by volume recovery, customer conversions, reloads, and improved product mix. The company expects capex spend of nearly INR 3 billion in FY27, focused on ADC, oligonucleotides, manufacturing infrastructure, and quality systems. Regarding the recent Middle East geopolitical situation, management noted an escalation in logistics and freight costs, which is expected to impact Q1 FY27 gross margins by nearly 100 to 150 bps.

Cohance Lifesciences Limited has informed the stock exchanges that its management will participate in upcoming analyst and institutional investor meetings. These interactions are scheduled to take place in May 2026.

Conference Schedule

The company management will attend the following conferences to engage with investors and analysts. The schedule is subject to change based on exigencies.

Disclosure Compliance

The company stated that no unpublished price-sensitive information will be shared during these interactions. The intimation was submitted to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.