Concord Biotech (CONCORDBIO) Q2 24/25 earnings summary

Executive summary

• Achieved 18% year-over-year revenue growth in Q2 FY25, with EBITDA and PAT increasing by 15% and 18% respectively, driven by strong formulation business performance and new product introductions.

• Formulation segment revenue surged 125% year-over-year in Q2 FY25, while API segment revenue grew 1% excluding intercompany sales.

• Expanded market penetration, customer base, and entry into new regions, with a robust pipeline in oncology and antifungal therapies.

• Maintained leadership in fermentation-based APIs for immunosuppressants, with a diversified portfolio across therapeutic areas and strong regulatory compliance.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY2025 were approved and reviewed by the Board and Audit Committee on November 11, 2024.

Financial highlights

• Q2 FY25 revenue: INR 310.2 crores (₹31,018.12 lakhs) vs INR 262 crores in Q2 FY24 (18% YoY growth); H1 FY25 revenue: INR 526 crores (₹52,600 lakhs), up 15%.

• Q2 FY25 EBITDA: INR 137 crores vs INR 119 crores in Q2 FY24 (15% YoY growth); EBITDA margin at 44%.

• Q2 FY25 PAT: INR 99 crores (₹9,574.09 lakhs) vs INR 84 crores in Q2 FY24 (18% YoY growth); PAT margin at 32%.

• Basic and diluted EPS for Q2 FY25 stood at ₹9.15, up from ₹7.74 in Q2 FY24.

• Zero debt with cash and equivalents of INR 284 crores as of September 30, 2024.

Outlook and guidance

• Expecting double-digit growth in API for FY25, with overall business growth in line with long-term CAGR guidance of 25%.

• Plans to launch 8-10 new products over the next 3-4 years in oncology, anti-infectives, and anti-fungals.

• Second half of FY25 anticipated to be stronger than the first, maintaining historical sales and EBITDA seasonality.

• Long-term segment mix guidance remains at 80% API and 20% formulation, with some year-to-year variability.

• Upcoming injectable facility expected to support future growth after regulatory delays.