COHANCE · Healthcare · filed 6 Nov 2026
Cohance Lifesciences Ltd. reported revenue of ₹477 cr for July to September 2026, −14.2% on the year and +12.9% on the quarter. That is slower than this quarter has grown in recent years (+76.7% on average). Over the last four quarters revenue comes to ₹2,063 cr, −21.3% on the four before.
Operating profit (EBITDA) was ₹35.4 cr, a margin of 7.4%, −1,435 bps on the year and +715 bps on the quarter. Over the last 8 quarters the margin has ranged from 0.3% to 35.1%, averaging 18.2%. Operating costs grew +1.5%, faster than revenue at −14.2%, so operating profit grew less than sales.
Net profit was ₹2.3 cr, −96.6% on the year and — on the quarter, with earnings per share of ₹0.40. Profit before other income, one-offs and tax fell 134.0%, so 37 points of the headline growth came from outside the core business. Profit over the last four quarters totals −₹5.9 cr, −101.5% on the four before.
Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Cohance Lifesciences Ltd. ranks 13th on revenue growth; the sector median is +12.9%. Its margin moved −1,435 bps on the year against a sector median of +12 bps.
Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.
On earnings per share of ₹1.24 over the last four quarters, the stock at ₹443.65 trades at 357.8 times trailing earnings.
Operating margin fell sharply on the year. Pricing, input costs, or mix?
Source: Results filing
Inventory is piling up against sales. Slow demand, or stocking ahead?
Source: Balance sheet
Borrowing rose while cash also rose. Why borrow while holding the cash?
Source: Balance sheet
Could not run on this quarter: Other income carrying profit, Exceptional items that recur, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹469 cr | ₹681 cr | ▼ 31.1% |
| Inventory | ₹734 cr | ₹562 cr | ▲ 30.6% |
| Cash | ₹98.6 cr | ₹49.1 cr | ▲ 100.7% |
| Bank balances | ₹9.2 cr | ₹10.5 cr | ▼ 12.7% |
| Long-term borrowings | ₹28.1 cr | ₹50.5 cr | ▼ 44.3% |
| Short-term borrowings | ₹200 cr | ₹119 cr | ▲ 67.5% |
| Trade payables | ₹364 cr | ₹285 cr | ▲ 28.0% |
| Net block | ₹1,943 cr | ₹1,990 cr | ▼ 2.4% |
| Capital work in progress | ₹216 cr | ₹173 cr | ▲ 24.6% |
| Equity | ₹3,912 cr | ₹3,911 cr | ▲ 0.0% |
| Total assets | ₹5,680 cr | ₹5,730 cr | ▼ 0.9% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹188 cr | ₹261 cr |
| Capital expenditure | −₹108 cr | −₹89.7 cr |
| Investing cash flow | −₹46.7 cr | −₹194 cr |
| Financing cash flow | −₹92.5 cr | −₹82.9 cr |
Receivables at 95 days of sales (−14 days against the last year end). Inventory at 149 days of sales (+59 days).
Other matter: “We did not review the interim financial results of one subsidiary included in the Statement, whose financial information reflects total assets of ₹21.51 crore as at 30 September 2026, and total revenues of ₹3.39 crore and ₹6.83 crore, total net… Read in full
We did not review the interim financial results of one subsidiary included in the Statement, whose financial information reflects total assets of ₹21.51 crore as at 30 September 2026, and total revenues of ₹3.39 crore and ₹6.83 crore, total net profit after tax of ₹0.42 crore and ₹1.12 crores, total comprehensive income of ₹0.42 crore and ₹1.11 crore, for the quarter and year-to-date period ended on 30 September 2026, respectively, and net cash outflows of ₹7.45 crores for the period ended 30 September 2026, as considered in the Statement. These interim financial results have been reviewed by other auditors whose review report has been furnished to us by the management, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these subsidiary is based solely on the review report of such other auditor and the procedures performed by us as stated in paragraph 3 above.
Filing p. consolidated limited review report p.16-17
Merger of erstwhile Cohance Lifesciences Limited into Suven Pharmaceuticals Limited completed with name change to Cohance Lifesciences Limited. (p. ress release p.2 & consolidated note 2)
Appointment / designation update of Executive Director as approved by Board of Directors. (p. outcome letter p.1)
Disclosure regarding industrial incident at manufacturing facility and subsequent regulatory inspection notice/closure order. (p. outcome letter p.2)
Tax: Consolidated tax credit of ₹13.02 crore (current tax ₹1.43 crore, deferred tax credit ₹14.45 crore / net tax credit ₹13.02 crore) on Loss before tax of ₹10.75 crore for Q2 FY27
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Gross margin | 70.8% | 71.5% | 74.6% |
Maintains USFDA compliant manufacturing facilities across India and US; company remains focused on progressing regulatory commitments and maintaining compliance standards.
Facilities are compliant with regulatory requirements across key global operating sites.
Specialty Chemicals revenue declined 40.6% YoY due to AgChem pricing pressure, lower volumes and programme phasing, while API+ revenue grew supported by selective pricing actions.
AgChem pricing pressure and programme phasing impacted Specialty Chemicals top line.
Platform is diversified across Pharma CDMO (35% revenue share in Q2), API+ (56% revenue share) and Specialty Chemicals (9% revenue share), with Sapala nucleic acid business growing 33.6% YoY.
Balanced revenue mix across multiple CRDMO, API+, and nucleic acid chemistry offerings reduces single-product reliance.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| H2 FY27 YoY Revenue and EBITDA Growth Target | Grow YoY | H2 FY2027 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Contract Development and Manufacturing Operations (CDMO) | ₹477 cr | ▼ 14.2% | −₹10.8 cr | ▼ 112.8% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹220 cr | ₹253 cr | ₹488 cr | ₹604 cr | ₹676 cr | ₹840 cr | ₹549 cr | ₹556 cr | ₹545 cr | ₹619 cr | ₹422 cr | ₹477 cr |
| YoY | — | — | +40% | +161% | +207% | +232% | +13% | −8% | −19% | −26% | −23% | −14% |
| EBITDA margin | 30.0% | 28.9% | 25.6% | 33.9% | 35.1% | 27.3% | 20.4% | 21.8% | 17.4% | 16.0% | 0.3% | 7.4% |
| Other income, % of PBT | 22% | 24% | 18% | 9% | 11% | −2% | 10% | 19% | 2% | −90% | — | — |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 29% | 25% | 27% | 21% | 25% | 27% | 26% | 21% | 29% | 58% | — | — |
| Net profit | ₹47.0 cr | ₹53.0 cr | ₹75.0 cr | ₹138 cr | ₹153 cr | ₹117 cr | ₹46.0 cr | ₹66.4 cr | ₹29.0 cr | ₹8.0 cr | −₹45.2 cr | ₹2.3 cr |
| YoY | — | — | −38% | +73% | +226% | +121% | −39% | −52% | −81% | −93% | −198% | −97% |
| Core profit YoY | — | — | −45% | +86% | +259% | +206% | −32% | −57% | −78% | −77% | −197% | −134% |
| EPS | ₹1.84 | ₹2.10 | ₹2.96 | ₹5.44 | ₹6.01 | ₹4.73 | ₹1.28 | ₹1.94 | ₹0.96 | ₹0.51 | −₹0.63 | ₹0.40 |
| Flags | · | · | 1 | 1 | ✓ | ✓ | 1 | 1 | 1 | 1 | 2 | 3 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Cohance Lifesciences Ltd. reported revenue of ₹477 cr (−14.2% on the year) and net profit of ₹2.3 cr (−96.6% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −134.0% on the year, against −96.6% for reported profit.
3 checks raised a question: Operating margin fell sharply on the year. Pricing, input costs, or mix?
No. FinMinutes reports what was filed and the questions the numbers raise. It does not recommend buying, selling or holding any security.
Numbers as filed with the exchanges, read by rules. Every flag is a question with its source, not an accusation. FinMinutes is a financial data and analytics platform; nothing here is a recommendation to buy, sell or hold any security. How each check works.