Cohance Lifesciences Ltd on Friday (November 6) reported a 79.5% year-on-year decline in net profit to ₹15.2 crore for the second quarter of FY27, compared with ₹74.1 crore in the corresponding period last year.
Revenue declined 14.2% to ₹477 crore from ₹556 crore in the year-ago quarter. However, revenue from operations increased 12.9% sequentially during the quarter to ₹4,767 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 93.2% year-on-year to ₹35.7 crore from ₹521.4 crore. The EBITDA margin stood at 7.5%, compared with 93.8% in the corresponding quarter last year.
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The company’s gross margin was 70.8% in Q2 FY27, compared with 74.6% in Q2 FY26, due to an unfavourable business and product mix. Adjusted EBITDA stood at ₹458 million, or ₹45.8 crore, with a margin of 10%. This compared with an adjusted EBITDA margin of 2.2% in the first quarter of FY27.
H1 FY27 financial performance
For the first half of FY27, revenue from operations declined 18.6% year-on-year to ₹8,989 million. Gross margin stood at 71.1%, compared with 73.8% in H1 FY26. Adjusted EBITDA for the first half was ₹551 million, with an adjusted EBITDA margin of 6.1%.
Business updates
In its Small Molecules business, Cohance said it had secured stronger order visibility for the third and fourth quarters, along with multiple commercial reload orders that are expected to support delivery schedules and the second-half recovery.
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The company secured three significant programmes with large global pharmaceutical customers, comprising two commercial programmes and one Phase III programme.
Two molecules moved into commercial supply, while two additional molecules are expected to enter commercial supply over the next 12–15 months. One of these has received US Food and Drug Administration (USFDA) approval.
NJ Bio successfully delivered two antibody-drug conjugate (ADC) good manufacturing practice (GMP) campaigns, including an end-to-end development programme. One customised payload programme is progressing through scale-up.
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The Nucleic Acid business is seeing demand for specialised nucleosides and amidites, with increasing commercial opportunities and larger-scale manufacturing programmes across the Cohance network.
H2 FY27 outlook
Cohance expects the second half of FY27 to be materially stronger than the first half, supported by Small Molecule deliveries and reload orders, continued resilience in API+, growth in nucleic acids and progressive improvement across its portfolio.
Higher revenue conversion, improved utilisation and a better business mix are expected to support a gradual recovery in margins. The company said its strategic direction remains unchanged.
Umang Vohra, Executive Chairman and Group CEO, said, “Q2 reflects an improving business trajectory and the broader Cohance platform beginning to come together. We expect H2 to be materially stronger than H1, with year-on-year growth in both revenue and EBITDA, supported by improving visibility across our businesses.
At the same time, we remain focused on progressing our regulatory commitments and maintaining the highest standards of quality and compliance across our facilities. We see significant value potential as we continue to integrate and scale the Cohance platform, and we are still at the beginning of that journey.”
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Shares of Cohance Lifesciences Ltd ended at ₹434.00, down by ₹15.70, or 3.49%, on the BSE.