Dishman Carbogen Amcis Limited has issued a detailed clarification regarding the recent credit rating downgrade by India Ratings & Research Pvt. Ltd. (IND-RA). The pharmaceutical company addressed stakeholders through a regulatory filing dated 23rd February, 2026, explaining the context behind the rating action and highlighting its improving financial metrics.

Credit Rating Downgrade Details

India Ratings recently downgraded the company's credit facilities ratings from the previous levels. The rating agency assigned new ratings taking a consolidated view of the company's operations.

The last rating exercise before this recent downgrade was undertaken by India Ratings in April 2025, when the ratings were affirmed at A+ and A1+ respectively with a stable outlook.

Improved Financial Metrics

Despite the rating downgrade, Dishman Carbogen Amcis highlighted significant improvements in its financial position. The company's net leverage ratio showed substantial improvement over the six-month period.

The company emphasized that the net leverage as on 30th September, 2025, considered for the current rating action, improved to 3.18x compared to 3.92x as on 31st March, 2025.

EBITDA Margin Performance

The company's EBITDA margins have shown consistent improvement, particularly when excluding the impact of new facilities. The consolidated EBITDA margins demonstrate a recovery trajectory.

The EBITDA margins for the group have kept improving, excluding the new French site and recently re-approved India site, as compared to the pre-EDQM observation period margins. The margins generated in FY25 and nine months ended December 31, 2025, excluding those from France and India sites, show growth compared to pre-EDQM observation margins.

Management's Position

The company stated that the recent credit rating action does not represent the improving business and financial performance of the group. Management expects to achieve EBITDA levels at pre-EDQM observation levels of 24.4% with the scale-up in business at the newly established French facility and the recently re-approved Bavla site in India, along with continuing growth at other sites.

Dishman Carbogen Amcis remains committed to maintaining transparent communication with stakeholders and has provided this clarification to ensure proper understanding of its financial position despite the rating downgrade.

Dishman Carbogen Amcis Limited announced its unaudited financial results for the third quarter ended December 31, 2025, through a press release issued on February 4, 2026. The pharmaceutical contract development and manufacturing organization (CDMO) company reported mixed performance with revenue growth but profitability challenges during the quarter.

Q3FY26 Financial Performance Overview

The company's consolidated operations demonstrated revenue growth despite facing significant profitability challenges during the quarter. Net revenue increased to ₹7,198 crores in Q3FY26 compared to ₹6,823 crores in Q3FY25, marking a 5.5% year-on-year growth. However, the company reported a consolidated net loss of ₹129.7 crores compared to a net profit of ₹46.3 crores in the corresponding quarter of the previous year.

Segment-wise Revenue Analysis

The CDMO segment continued to be the primary revenue driver, contributing 87% of total operating revenue in Q3FY26. CDMO revenue increased by 6.7% to ₹6,297 crores compared to ₹5,901 crores in Q3FY25, primarily driven by higher development revenue. The Marketable Molecules segment revenue declined by 2.4% to ₹901 crores from ₹922 crores, mainly due to lower Quats revenue.

Nine-Month Performance Shows Recovery

The nine-month period ended December 31, 2025, demonstrated stronger overall performance with significant improvement in profitability metrics. Net revenue for 9MFY26 reached ₹20,805 crores, up 4.3% from ₹19,952 crores in 9MFY25. The company achieved a remarkable turnaround with net profit of ₹757 crores compared to a net loss of ₹398.5 crores in the previous year.

Operational Challenges and Margin Pressures

The company faced several operational headwinds during the quarter that impacted margins significantly. EBITDA margin compression occurred due to decreased margins in both CDMO segment (from 22.1% to 16.9%) and Marketable Molecules segment (from 11.3% to 7.2%). The CDMO segment margin decline was attributed to lower contribution from late Phase III molecules, while the MM segment margin decrease was due to high composition of cholesterol revenue. Additionally, supplies of approximately ₹20 crores were deferred from Q3FY26 to Q4FY26 due to delayed intermediate supply and holiday period in Europe.

Company Profile and Global Operations

Established in 1983, Dishman Carbogen Amcis Limited operates as a fully integrated CDMO company with comprehensive capabilities spanning from process research and development to late-stage clinical and commercial manufacturing. The company maintains a global presence with 23 multi-purpose manufacturing facilities across India, Switzerland, UK, France, Netherlands, and China, serving over 250 clients with 32 research and development laboratories. The company's product portfolio includes APIs, High Potent APIs, Intermediates, Phase Transfer Catalysts, Vitamin D Analogues, Cholesterol, Lanolin-related products, and Antiseptic and Disinfectant formulations.