Cohance Lifesciences Limited , formerly known as Suven Pharmaceuticals Limited, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amid industry-wide challenges.

Financial Performance

The company reported a revenue of ₹5,556.00 million for Q2 FY26, marking an 8% year-on-year decline. This decrease was primarily attributed to deferred shipments at CDMO and FDF sites, key molecule destocking, and timing issues with certain project starts, particularly at NJ Bio. However, when adjusted for destocking, the quarter showed a 14% year-on-year growth.

Despite the revenue dip, Cohance Lifesciences saw an improvement in its gross margins, which rose to 74.6% compared to 71.3% in the same quarter last year. This enhancement was driven by a favorable business mix and ongoing efficiency and yield improvements.

The company's Adjusted EBITDA for the quarter stood at ₹1,289.00 million, with margins at 23.2%. These figures reflect the impact of lower volumes, upfront investments in employee costs, and certain transition and remediation expenses.

Half-Year Performance

For the first half of FY26, Cohance Lifesciences reported:

The company noted that adjusting for destocking, the first half showed a 20% year-on-year growth.

Business Highlights and Challenges

Cohance Lifesciences highlighted several key developments:

• A partner's Phase III drug, for which Cohance supplies four intermediates, received US FDA approval.
• Successful execution of a large Phase II order for a leading global innovator.
• Positive traction in Agrochemicals and Performance/OLED segments.
• Strong business development at CPHI Frankfurt 2025, with new leads from Europe and Japan.

However, the company also faced challenges:

• Pharma destocking in key molecules and delayed reloads of Phase 2-3 molecules affected near-term growth.
• Biotech funding slowdown led to project shipments at NJ Bio being pushed by 2-3 quarters.
• A temporary shutdown at the Nacharam plant impacted production schedules.

Future Outlook

Despite current challenges, Cohance Lifesciences remains optimistic about its future. The company maintains its target of achieving USD 1 billion (₹85 billion) in revenue by 2030, with mid-30s EBITDA margins. Management expects a stronger performance in the second half of FY26, driven by deferred shipments, new commercial project wins, and audit clearances.

Vivek Sharma, Executive Chairman, commented on the results: "As we move from integration to capability amplification, Cohance is now firmly focused on building the science platforms, operational backbone, and governance needed to power our next phase of growth. While near-term challenges such as pharma destocking, biotech funding delays, and the temporary Nacharam plant shutdown have impacted reported growth, our fundamentals remain strong."

Sharma also highlighted the company's achievements, including a key regulatory milestone with a late-phase molecule approval in the U.S., new biotech partnerships, and successful customer audits. He noted the healthy demand from large innovators and the trend of global customers seeking to diversify supply chains, positioning Cohance favorably as a technology-led CDMO.

As Cohance Lifesciences navigates through these industry headwinds, its focus on capability enhancement, strategic partnerships, and operational efficiency will be crucial in achieving its long-term growth objectives.

Cohance Lifesciences Limited , formerly known as Suven Pharmaceuticals Limited, has reported its financial results for the first half of fiscal year 2026, revealing a mixed performance with modest revenue growth and improved gross margins amid various industry challenges.

H1 FY26 Financial Highlights

The company's half-year performance showed resilience despite challenges, with revenue growing by 1.2% year-on-year to ₹11,049.00 million. Gross margins improved significantly to 73.8% for H1FY26 compared to 70% in the same period last year, driven by business mix and efficiency improvements.

Q2 FY26 Performance

For the second quarter of FY26, Cohance Lifesciences reported:

The quarterly revenue decline was primarily attributed to deferred shipments at CDMO and FDF sites and key molecule destocking.

Business Highlights and Challenges

Despite the revenue challenges, Cohance Lifesciences achieved several notable milestones:

• Secured US FDA approval for a Phase III drug from an innovator partner
• Executed a large Phase II order for a global innovator

The company faced challenges including:

• Pharma destocking in key molecules
• Delayed biotech project shipments pushed by 2-3 quarters due to extended CMC timelines
• Temporary Nacharam plant shutdown

Future Outlook

Despite near-term challenges, Cohance Lifesciences remains optimistic about its future. The company maintains its target of achieving USD 1 billion revenue by 2030 with mid-30s EBITDA margins.

Vivek Sharma, Executive Chairman, commented on the company's position: "As we move from integration to capability amplification, Cohance is now firmly focused on building the science platforms, operational backbone, and governance needed to power our next phase of growth."

He added, "While near-term challenges such as pharma destocking, biotech funding delays, and the temporary Nacharam plant shutdown have impacted reported growth, our fundamentals remain strong."

Cohance Lifesciences continues to position itself as a technology-led CDMO, capitalizing on the trend of global customers seeking to diversify their supply chains. The company's focus on niche modalities and its strengthened leadership team are seen as key factors in achieving its long-term vision.