Cohance Lifesciences Limited has released the comprehensive transcript of its quarterly earnings conference call for Q3FY26 and nine months ended December 31, 2025. The detailed transcript provides extensive insights into the company's performance challenges and strategic outlook.

Financial Performance Overview

The company reported significant revenue challenges during the period, with management acknowledging that recent performance has fallen below expectations. The nine-month FY26 revenue declined by 6.7% to ₹1,650 crore, while Q3 FY26 revenue dropped by 19.5% to ₹545 crore.

Business Segment Challenges

Executive Chairman Vivek Sharma outlined specific factors impacting performance. The Pharma CDMO business experienced a 27% year-on-year decline in Q3, though when adjusted for destocking effects, it showed 7% growth. Destocking in two large commercial products impacted revenue by nearly ₹260 crore as customers normalized inventories.

The API Plus segment faced regulatory challenges, with the Nacharam formulation facility receiving a warning letter following OAI status, leading to shipment deferrals of approximately ₹55 crore. The Specialty Chemicals segment reported 32% growth to ₹1.9 billion for nine months.

Strategic Developments and Pipeline

CEO Pharma CDMO Yann D'Herve highlighted positive developments despite near-term challenges. The company currently supports nine Phase 3 programs across its portfolio, with four molecules expected to move into commercial supply during the coming fiscal year across therapy areas including pulmonary, ADHD, anti-diabetic, and oncology.

Management Outlook

The management team revised FY26 revenue outlook to reflect an early-to-mid double-digit decline but expressed confidence in FY27 growth prospects. CFO Himanshu Agarwal emphasized that the challenges are timing and product mix related rather than structural in nature.

Despite earning volatility, the business generated free cash flow of ₹175 crore during the first nine months of FY26. The company remains committed to its USD 1 billion sales target, though timing may shift slightly due to current year challenges.

Conference Call Availability

The earnings conference call was conducted on February 12, 2026, with the complete transcript now available following the company's earlier intimation dated January 22, 2026. The disclosure was made pursuant to Regulation 30 of SEBI regulations, ensuring transparency with stakeholders.

Source:

Cohance Lifesciences Limited has received a warning letter from the US Food and Drug Administration (USFDA) concerning its Nacharam facility. The company disclosed this development through an official communication to stock exchanges under Regulation 30 of the SEBI Listing Regulations.

Regulatory Timeline and Inspection Details

The warning letter follows a USFDA inspection conducted at the company's Finished Dosage Formulations manufacturing facility (FDF Unit-I) located at Nacharam, Hyderabad, from August 4, 2025 to August 12, 2025. The company had previously communicated with stock exchanges regarding this inspection through multiple disclosures dated August 13, 2025, September 18, 2025, and October 26, 2025.

Financial Impact Assessment

The company has provided detailed financial clarity regarding the potential impact of this regulatory action. According to the official disclosure, US revenues from the affected Nacharam facility contributed less than 2% of consolidated revenues in FY2025. More significantly, the related EBITDA contribution remained below 1%, indicating minimal material impact on the company's overall financial performance.

Company Response and Commitment

Cohance Lifesciences has expressed its commitment to addressing the concerns raised by the USFDA and stated it will work with the regulatory authority to resolve these issues at the earliest. The company emphasized its dedication to maintaining the highest standards of quality and regulatory compliance across all operations.

The warning letter represents a continuation of the Official Action Indicated (OAI) classification that was previously communicated to the stock exchanges. The company remains focused on ensuring the manufacture and supply of high-quality pharmaceutical products for global markets while working toward regulatory compliance resolution.