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.

Cohance Lifesciences , a prominent player in the pharmaceutical industry, experienced significant market turbulence on Wednesday as its shares plummeted following a major leadership change.

Leadership Transition

The company announced that Dr. V Prasada Raju has resigned from his position as Managing Director and Director, effective from the close of business hours on October 28. Dr. Raju cited personal priorities and a desire to continue his learning journey as reasons for his departure.

In response to this development, the Board of Directors has taken swift action to ensure continuity in leadership:

• Resignation: Dr. V Prasada Raju (DIN: 07267366) steps down as Managing Director and Director.
• New Appointment: Mr. Himanshu Agarwal (DIN: 06672915), the current Chief Financial Officer, has been appointed as an Additional Director and Whole-Time Director for a five-year term, subject to shareholder approval.

Market Reaction

The news of Dr. Raju's resignation had an immediate impact on Cohance Lifesciences' stock performance:

The sharp decline in share price reflects investor concerns about the company's leadership transition and its potential impact on future performance.

Company's Response

Cohance Lifesciences has emphasized its commitment to a smooth transition. Dr. Raju will remain available to the company during the notice period to facilitate an orderly handover of his duties and responsibilities.

Mr. Himanshu Agarwal, who has been serving as the CFO, brings over 30 years of diverse financial experience to his new role. His appointment is seen as a move to maintain financial stability and strategic continuity within the organization.

Investor Communication

In light of these developments, Cohance Lifesciences has scheduled a conference call for investors and analysts on October 28 at 6:30 PM IST. This call aims to provide further clarity on the leadership changes and address any concerns from the investment community.

As Cohance Lifesciences navigates this transition, the market will be closely watching for signs of stability and continued growth under the new leadership structure. The company's ability to maintain its strategic direction and operational efficiency will be crucial in regaining investor confidence in the coming months.