Cohance Lifesciences Ltd (BOM:543064) Q3 2026 Earnings Call Highlights: Navigating Challenges …

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Sat, February 14, 2026 at 10:03 AM GMT+9 4 min read

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**Revenue:** Declined by 6.7% to INR 1650 crores for nine months FY'26.

**Gross Margin:** Improved to 72.8%, up 204 basis points year on year.

**Adjusted EBITDA:** Declined by 43% to INR 348 crores for nine months FY'26, with margins at 21%.

**Q3 Revenue:** Declined by 19.5% to INR 545 crores.

**Q3 Adjusted EBITDA:** INR 85 crores with margins at 15.5%.

**Free Cash Flow:** Generated INR 175 crores during the first nine months of FY'26.

**Capital Expenditure:** INR 161 crores during the first nine months, focused on ADC and Oligonucleotides platforms.

**API+ Segment Revenue:** Declined by 8% year on year to INR 8.15 billion.

**Specialty Chemicals Revenue:** Grew by 32% YoY to INR 1.9 billion.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Cohance Lifesciences Ltd (BOM:543064) has deepened customer engagement with two large global innovators, progressing multiple ongoing programs and new RFPs.

The company supports a robust late-stage pipeline with 9 Phase III programs, providing medium-term visibility as these assets progress towards launch and scale-up.

Cohance Lifesciences Ltd has secured a commercial KSM opportunity with a Spec Chem CDMO, with commercial supplies expected to commence from the second half of FY'27.

The company has onboarded two highly seasoned business development professionals to support increasing engagement in higher complexity oligonucleotides and amidite programs.

The specialty chemicals segment reported a revenue growth of 32% YoY, driven by customer diversification and pipeline development.

Negative Points

Cohance Lifesciences Ltd's recent performance has come in below expectations, with FY'26 being a transition year due to portfolio mix and customer-led timing factors.

The Nacharam formulation site received a warning letter, impacting production and leading to shipment deferrals of approximately INR55 crores.

The company experienced a revenue decline of 6.7% for the nine months of FY'26, influenced by de-stocking in two large commercial products and customer-related approval delays.

Near-term revenues were impacted by customer-led delays in reloads and payload intermediate offset, driven by higher inventory levels and changes in launch timing.

The API+ segment reported a revenue decline of 8% year on year, affected by regulatory and demand-related factors.

 






Story Continues  

Q & A Highlights

Q: Since Cohance Lifesciences has lowered its revenue guidance for FY’26, is the company still committed to its $1 billion sales target for FY’30? A: Vivek Sharma, Executive Chairman, confirmed that the company remains committed to the $1 billion target, although the timeline might shift slightly due to the challenges faced in FY’26. The company is working towards growth in FY’27.

Q: With API contributing almost 50% of total sales, how should we view the order book visibility and potential growth in FY’27? A: Himanshu Agarwal, CFO, stated that there is significant traction in the business, and API is expected to contribute to growth in FY’27. However, specific growth figures will be shared after further validation and risk assessment.

Q: What is the impact of the Nacharam facility’s warning letter on revenues, and is this the peak of the negative impact? A: Gunjan Singh, Business Head - API+, explained that the facility’s issues have led to some slowdown, but production for non-US markets continues. The impact is limited as the facility contributes less than 2% of total consolidated sales.

Q: What is the conversion rate for RFQs, and how long does it typically take for them to convert into commercial molecules? A: Yann D’herve, CEO, stated that the conversion rate for RFQs is around 20%. The funnel has improved significantly, and orders are expected to be released in the next two to three quarters.

Q: Regarding the unpredictability of product life cycles, is this a new industry trend, and should it be expected to continue? A: Yann D’herve explained that unpredictability is common when products are near patent expiry or newly approved. Cohance’s portfolio is currently heavy on these two ends, which increases unpredictability but also indicates a strong early commercialized pipeline.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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