Concord Biotech Limited , a leading biopharmaceutical company, reported a 20% year-on-year decline in revenue for the second quarter of fiscal year 2026, primarily due to regulatory delays and market disruptions. The company's Q2 FY26 revenues dropped to Rs. 247.00 crores from Rs. 310.00 crores in the same period last year.

Key Factors Affecting Q2 Performance

The company attributed the revenue decline to three main factors:

1. Delayed CDSCO Written Confirmation: A delay in obtaining the Written Confirmation from the Central Drugs Standard Control Organization (CDSCO) affected sales to the European Union. This approval is a prerequisite for selling products in the EU market.

2. Deferred Middle East Government Tender: A government supply contract in the Middle East, executed through an Indian entity, was postponed due to regional uncertainties and ongoing conflicts.

3. Shift in U.S. Procurement Patterns: Uncertainties surrounding tariffs led to changes in procurement patterns from U.S. customers.

Financial Highlights

• H1 FY26 Revenue: Rs. 451.00 crores
• Q2 FY26 EBITDA: Rs. 88.00 crores
• H1 FY26 EBITDA: Rs. 150.00 crores
• Q2 FY26 PAT: Rs. 63.00 crores
• H1 FY26 PAT: Rs. 107.00 crores

Segment-wise Performance

Geographical Revenue Distribution

Operational Performance

The company reported the following capacity utilization rates for H1 FY26:

• Unit-1 (Dholka): 76%
• Valthera: 24%
• Limbasi: 52%

The newly commissioned injectable facility is still in the early stages of operation.

Management Commentary

Ankur Vaid, Joint Managing Director and CEO of Concord Biotech, stated, "We anticipate a stronger H2 performance as regulatory approvals are now received and delayed shipments resume. Our EBITDA margins stand at 41%, excluding injectable facility startup costs."

He further added, "The company expects to recover deferred revenue in the coming quarters, although the exact timing and quantum are difficult to specify at this stage."

Future Outlook

Concord Biotech remains optimistic about its long-term growth prospects, citing several positive developments:

1. Regulatory Approvals: The company has secured multiple regulatory approvals across its sites, including USFDA, EU-GMP, and Russian GMP certifications for various facilities.

2. New Product Opportunities: The company is in advanced discussions with innovator companies for generic API supplies and is pursuing qualification initiatives for second-source opportunities.

3. Injectable Facility Ramp-up: The newly commissioned injectable facility is witnessing increased inquiries and revenue traction, with products successfully validated and growing customer acceptance.

4. CDMO Business: The company continues to progress in its Contract Development and Manufacturing Organization (CDMO) business, which represents a significant long-term growth driver.

5. Diversification Efforts: Concord Biotech is working on expanding its portfolio beyond immunosuppressants, with new products in development primarily in the non-immuno segment.

While the company faces near-term challenges, management remains confident in its ability to leverage its expertise in complex fermentation processes, operational excellence, and R&D capabilities to drive future growth.

Conclusion

Despite the temporary setbacks in Q2 FY26, Concord Biotech's management expresses confidence in a stronger second half of the fiscal year. The company's focus on diversification, regulatory compliance, and expansion into new markets positions it well for potential recovery and long-term growth in the biopharmaceutical sector.

Concord Biotech Limited , a prominent player in the Indian biotech sector, has recently shared insights into its future performance expectations and growth strategies. The company's management has expressed optimism about its trajectory, particularly for the latter half of the fiscal year 2026.

Key Highlights

Performance Outlook

Concord Biotech's management has expressed confidence in a stronger performance for the second half of fiscal year 2026 compared to the same period in FY25. The company expects to gain better clarity on its performance by the fourth quarter, indicating a cautious yet optimistic approach to its near-term prospects.

Injectable Facility Potential

A significant focus of the company's growth strategy appears to be its injectable facility. Management estimates suggest that this facility could potentially generate revenue in the range of INR 400-600 crores. This projection is particularly noteworthy considering the total addressable market for the injectable segment, which is estimated to be between INR 3,000-4,000 crores.

Growth Aspirations

While no formal guidance has been provided, Concord Biotech believes it has the capabilities to achieve a Compound Annual Growth Rate (CAGR) of 25%. This ambitious target is based on several factors:

• Existing facilities
• Product mix
• New facilities that were previously not contributing to revenue

The company's confidence in its growth potential stems from these elements, suggesting a multi-faceted approach to expansion and revenue generation.

Recent Corporate Communication

In a recent corporate filing dated November 15, 2025, Concord Biotech announced the availability of its Q2 FY26 earnings call recording. This demonstrates the company's commitment to transparency and regular communication with its stakeholders, providing insights into its financial performance and future outlook.

Conclusion

Concord Biotech's optimistic outlook for H2 FY26 and its long-term growth aspirations reflect the company's confidence in its strategic positioning within the biotech sector. The potential of its injectable facility, coupled with its existing product mix and new facilities, presents a promising picture for investors. However, it's important to note that these projections are based on the company's current capabilities and market conditions, and actual results may vary.

As the biotech sector continues to evolve, Concord Biotech's performance in the coming quarters will be crucial in determining whether it can achieve its ambitious growth targets and capitalize on the opportunities in the injectable segment.