Concord Biotech Limited , a leading biopharmaceutical company, has reported its financial results for the first quarter, revealing a moderate performance impacted by customer procurement patterns and commercialization costs of its new injectable facility.

Key Financial Highlights

Segment Performance

Operational Highlights

• Received US FDA approval for teriflunomide tablets
• Successfully passed inspections by US FDA, European GMP, and Russian GMP authorities
• Incorporated two new subsidiaries: Stellon Biotech Inc. for US market operations and Concord Lifegen Limited for domestic marketing
• Initiated CDMO business sales to the US market
• Launched two products from the injectable facility in the domestic market

Management Commentary

Sudhir Vaid, Chairman and Managing Director, commented on the results: "We reported a stable performance this quarter with revenues at INR 204 crores, impacted mainly by revenue lumpiness. The preceding quarter had exceptionally high sales and historically, such strong quarters are followed by relatively softer ones."

Ankur Vaid, Joint Managing Director and CEO, added: "Our EBITDA and PAT registered a decline primarily due to the commencement of our injectable facilities at Valthera. These initial costs are expected to weigh on EBITDA margins until revenue from the facility scales up gradually."

Future Outlook

The company remains optimistic about its long-term growth prospects, citing several growth drivers:

1. Market growth in existing products
2. Conversion of innovator businesses to generic
3. New customer acquisition as a second-source supplier
4. New product launches and market penetration

Concord Biotech is also focusing on expanding its CDMO business, targeting potential revenues of $40-50 million in the coming years.

The management expects the injectable facility costs to normalize as revenues scale up, with a potential break-even by the end of FY26. The company continues to invest in R&D and expand its product portfolio to maintain its competitive edge in the fermentation-based API market.

Despite the short-term challenges, Concord Biotech remains confident in its ability to deliver strong growth, leveraging its expertise in complex niche products and expanding its presence in both domestic and international markets.

Concord Biotech Limited , a biotechnology company, has released its financial results for the first quarter of fiscal year 2026, revealing a mixed performance amid ongoing business developments.

Financial Performance

Revenue and Profitability

The company reported revenue of Rs 204.00 crores for Q1FY26, marking a 5% decrease from Rs 216.00 crores in the same quarter of the previous year. Concord Biotech attributed this decline to lumpiness in customer procurement patterns, indicating potential volatility in demand.

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) saw a more significant drop of 24%, falling to Rs 61.00 crores. The EBITDA margin contracted to 30.1% compared to 37.7% in Q1FY25. This margin compression was primarily due to expenses related to the commercialization of a new injectable facility at Valthera.

Profit After Tax (PAT) for the quarter decreased by 26% to Rs 44.00 crores, reflecting the impact of lower revenue and increased expenses.

Operational Highlights

Despite the financial headwinds, Concord Biotech made notable progress in its operations:

1. The company commenced commercial supply of CDMO (Contract Development and Manufacturing Organization) services to a US customer in Q2FY26, marking an expansion of its service offerings.

2. Concord successfully completed regulatory inspections by USFDA, EU GMP, and Russian GMP at its Dholka facility, underscoring its compliance with international quality standards.

3. The company acquired a 75% stake in US-based Stellon Biotech, potentially strengthening its presence in the American market.

4. Concord incorporated a wholly-owned subsidiary, Concord Lifegen Limited, to focus on domestic market operations in India.

Future Outlook

Despite the quarterly volatility, Concord Biotech maintains an optimistic stance on its growth trajectory for FY26. The company's expansion into CDMO services and its strategic acquisitions suggest a focus on diversifying revenue streams and expanding market reach.

The management's positive outlook, coupled with recent regulatory approvals and new business initiatives, indicates that Concord Biotech is positioning itself for potential growth in the coming quarters, notwithstanding the current challenges in customer procurement patterns.