Dishman Carbogen Amcis Limited has obtained consent from its debenture trustee for waiving specific financial covenants on its Rs. 50 crore non-convertible debentures (NCDs) for the financial year ended March 31, 2026. The company received approval from Axis Trustee Services Limited on March 31, 2026, following its request dated February 23, 2026.

Debenture Details and Covenant Modifications

The waiver pertains to NCDs issued under ISIN INE385W07059, comprising 5,000 senior, secured, rated, listed, transferable, taxable, redeemable non-convertible debentures with a face value of Rs. 1,00,000 each. The debentures were issued on a private placement basis and are listed on BSE Limited.

Financial Performance Highlights

Despite seeking covenant waivers, the company demonstrated strong consolidated performance during 9MFY26. Revenue increased to Rs. 20,805 million compared to Rs. 19,952 million in 9MFY25, representing a 4.3% year-on-year growth.

The EBITDA margin improvement was driven by enhanced performance across both business segments. The CDMO segment margin expanded from 17.2% to 19.7% due to higher revenue contribution from late Phase III molecules, while the Marketable Molecules segment margin surged from 8.3% to 17.5% owing to increased Vitamin D analogues supplies and cost reduction measures.

Rationale for Covenant Waiver

The company attributed the need for covenant waivers to several external challenges affecting its standalone operations. Geopolitical issues, including tariffs and supply chain disruptions, led customers to adopt conservative procurement approaches and defer delivery schedules to FY2027. Additionally, some customers who previously lost market share due to past EDQM issues are working to regain their positions, causing delays in purchase orders for Indian facilities.

Business Outlook and Strategic Focus

Despite current challenges, the company maintains a positive outlook with a strong pipeline of 10 molecules in late Phase III development. The management is focusing on improving capacity utilization by targeting small and mid-sized global biotech companies and diversifying across new geographies. The company has been securing new contracts and issued a substantial number of RFQs, which are expected to generate incremental orders for FY27 and beyond.

The debenture trustee's consent ensures continued compliance with debt obligations while providing operational flexibility during challenging market conditions. The company emphasized that the waiver does not modify the tenure or redemption obligations of the debentures, maintaining its commitment to debt servicing.

Dishman carbogen amcis Limited has successfully concluded its board meeting on March 18, 2026, with the approval of Non-Convertible Debentures aggregating up to Rs 150 crores through private placement. The Board of Directors convened from 4:00 PM to 5:00 PM and formally approved the comprehensive fund raising proposal that was previously scheduled for consideration.

Board Meeting Outcome

The board has approved the issuance of two tranches of Senior, secured, rated, listed, redeemable, transferable, taxable Non-Convertible Debentures. The meeting concluded with formal approval for the structured debt instrument offering, marking a significant corporate development for the pharmaceutical company.

NCD Structure and Terms

The approved issuance comprises two distinct tranches with specific terms and conditions. The first tranche involves up to 10,000 debentures of face value Rs 1,00,000 each, aggregating up to Rs 100 crores. The second tranche includes up to 5,000 debentures with the same face value, totaling Rs 50 crores.

Security and Listing Details

Both tranches will be secured with a security cover of 1.1x and listed on the Wholesale Debt Market Segment of BSE Limited. The Rs 100 crores tranche will be secured by exclusive charge over identified property belonging to promoter Mr. Arpit Vyas and first paripassu charge over fixed assets of the Bavla Property. The Rs 50 crores tranche includes a base issue of Rs 35 crores plus green shoe option of Rs 15 crores, secured by exclusive charge over identified property of Dishman Infrastructure Limited.

Regulatory Compliance

The company has fulfilled all disclosure requirements under Regulations 30 and 51 of SEBI LODR Regulations, 2015. Company Secretary Shrima Dave signed the formal intimation on March 18, 2026, ensuring complete compliance with stock exchange listing obligations and stakeholder communication requirements.

Source: Company/INE385W01011/df6d81ae-c078-4e46-b93d-491447fc8c82.pdf