Cohance Lifesciences Limited has announced a significant employee stock option grant under its Employee Stock Option Plan 2023 (ESOP 2023). The company's Nomination and Remuneration Committee has approved the allocation of 80,15,626 stock options to eligible employees, demonstrating a commitment to aligning employee interests with long-term corporate growth.

Key Details of the ESOP Grant

Vesting and Exercise Terms

The stock options granted under this plan come with a flexible vesting schedule, allowing for a minimum vesting period of one year and a maximum of ten years from the date of grant. This extended vesting period provides a long-term incentive for employees to contribute to the company's growth and success.

Once vested, employees will have a window of three years to exercise their options. Each option, when exercised, will entitle the holder to one equity share of Cohance Lifesciences Limited, with a face value of Re. 1.

Implications for Employees and Shareholders

This substantial ESOP grant serves multiple purposes:

1. Employee Retention: By offering a long-term vesting period, Cohance Lifesciences aims to retain talent over an extended timeframe.
2. Performance Motivation: The potential for equity ownership can serve as a strong motivator for employees to contribute to the company's success.
3. Alignment of Interests: By making employees potential shareholders, the company aligns their interests with those of existing shareholders.

However, current shareholders should be aware that the exercise of these options over time may lead to dilution of their ownership stake.

Conclusion

Cohance Lifesciences Limited's decision to grant over 80 lakh stock options underscores its commitment to employee engagement and long-term value creation. As the company moves forward with this ESOP, both employees and investors will be watching closely to see how this initiative impacts the company's performance and market position in the coming years.

Cohance Lifesciences , a leading pharmaceutical Contract Development and Manufacturing Organization (CDMO), has reported its Q2 FY26 results and revised its full-year guidance, citing various challenges in its operating environment.

Q2 FY26 Performance

For the quarter ended September 30, 2025, Cohance Lifesciences reported:

The company noted that adjusting for restocking effects, the quarter would have shown a 14% year-on-year growth.

H1 FY26 Overview

For the first half of FY26, Cohance reported:

The company stated that adjusting for restocking effects, H1 FY26 would have shown a 20% year-on-year growth.

Revised FY26 Guidance

Cohance Lifesciences has revised its FY26 guidance, now expecting revenue to remain flat compared to FY25. The company attributes this revision to several factors:

1. Deferred shipments at CDMO and FDF sites
2. Impact of the biotech funding winter on NJ Bio operations
3. Temporary shutdown of the Nacharam plant
4. Delays in new product approvals in the agrochemical segment

Despite these challenges, the company expects the second half of FY26 to be stronger than the first half, driven by the execution of deferred shipments and new program activations.

Outlook and Strategic Initiatives

Cohance Lifesciences maintains its mid-term guidance of achieving US$1 billion in revenue with mid-30s margins. The company is focusing on several strategic initiatives:

• Expanding its ADC (Antibody-Drug Conjugate) capabilities
• Launching three new payloads this fiscal year
• Increasing business development efforts in key locations such as Boston and San Francisco
• Continuing investments in high-potent and linked chemistry, oligonucleotide scale-up, and API and specialty chemicals

Management Commentary

Vivek Sharma, Executive Chairman, stated, "As we continue our journey of operational consolidation and capability transition for Cohance, we are moving from a phase of integration to a phase of capability amplification, building the organization, science platforms, and the governance needed to support our next leg of growth."

Himanshu Agarwal, Whole Time Director and CFO, commented on the margin outlook, saying, "We are most likely to be in the range of high 20s as EBITDA margin for FY26."

While Cohance Lifesciences faces near-term challenges, the company remains optimistic about its long-term prospects, citing a healthy pipeline and increasing traction in RFPs across its business segments.