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.

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.