Cohance Lifesciences (COHANCE) Q4 25/26 earnings summary

Executive summary

• FY26 was a transition year marked by leadership strengthening, a new Executive Chairman and Group CEO, and a focus on execution-led growth, with Q4 performance aligned to guidance and recovery expected in the second half of FY27.

• Performance was impacted by destocking, customer inventory normalization, shipment delays, regulatory disruptions, and timing shifts in select programs.

• Functional depth and technology platforms were enhanced across business development, quality, regulatory, R&D, and operations.

• Strengthened technology platforms in Small Molecules, ADCs, and Oligonucleotides.

• FY27 is expected to be a growth year, weighted towards the second half.

Financial highlights

• FY26 consolidated revenue was INR 22.69 billion, down 13% year-over-year, with gross margin at 70.8% (up 209 bps YoY).

• Adjusted EBITDA for FY26 was INR 4.8 billion (21% margin); standalone margin at 24.6%.

• Free cash flow generated in FY26 was INR 1.73 billion; cash on books at INR 3.22 billion.

• CapEx for FY26 was INR 2.15 billion, with a planned increase to INR 3 billion in FY27.

• One-time expenses included an inventory provision of INR 195 million, customer adjustments of INR 126 million, and a one-time customer settlement of INR 165 million.

Outlook and guidance

• FY27 is expected to be a growth year, with recovery and EBITDA improvement visible from 2HFY27; Q1FY27 is anticipated as the low point for both revenue and EBITDA.

• Growth will be driven by execution on existing programs, customer conversions, reloads, and improved utilization across the platform.

• All three business segments (API Plus, CDMO, Spec Chem) are expected to recover in H2 FY27, with order books skewed toward the second half.

• No specific FY27 growth guidance provided, but management expects year-over-year growth.