Cohance Lifesciences slips into Rs 24 crore loss in Q1
Mumbai, Aug 5
Cohance Lifesciences Limited on Wednesday reported a consolidated net loss of Rs 24.1 crore for the first quarter of FY27, compared to a net profit of Rs 48.9 crore in the corresponding quarter of the previous fiscal.
The company's revenue from operations declined 23.1 per cent year-on-year to Rs 422 crore in the April-June quarter, from Rs 549 crore in the same period last financial year, as per its stock exchange filing.
Its operating performance also weakened significantly, with EBITDA plunging 99 per cent to Rs 1.2 crore from Rs 112 crore a year ago.
Consequently, the EBITDA margin contracted sharply to 0.3 per cent from 20.4 per cent in the year-ago quarter.
Despite the weak quarterly performance, the company's shares ended the day marginally higher. The stock closed at Rs 428.40 on the BSE, up Rs 3.50, or 0.82 per cent.
Over the last five days, the company's shares have remained almost flat, rising by just 0.34 per cent. Over the past month, the stock has declined by 5.42 per cent. However, over the last six months, it has gained 20.07 per cent.
Hyderabad-headquartered Cohance Lifesciences is a technology-driven global Contract Development and Manufacturing Organization (CDMO) and active pharmaceutical ingredient (API) platform.
The company was formed following key corporate developments, including its merger with Suven Pharmaceuticals.
Cohance provides end-to-end lifecycle solutions across small molecules, antibody-drug conjugates (ADCs), and oligonucleotides.
Its business spans pharma CDMO services, high-value complex APIs under its API+ platform, and specialty chemicals.
The company serves global pharmaceutical innovators in more than 60 countries through multiple manufacturing facilities and specialised research and development centres.
It also has expertise in advanced modalities, including ADC payloads and oligonucleotide building blocks.
— IANS
Reader Comments
Hyderabad-based company and a lot of local pride attached to it. I work in the pharma sector and CDMO demand has been quite volatile post-covid. The 0.3% EBITDA margin is scary low—essentially operating at break-even. Maybe the Suven merger is still creating integration issues? Also, with global clients in 60+ countries, currency fluctuations and geopolitical issues could be hurting them. I just hope they don't go for cost-cutting by laying off employees. 🤞
Not a great quarter, but the six-month gain of 20% suggests investors are looking at the longer-term picture. The specialized areas—ADCs and oligonucleotides—are high-growth niches in oncology and targeted therapies. India's pharma sector has strong fundamentals, but this quarterly dip shows how sensitive it is to client timelines. Would like to see if any large contracts were deferred. I'm cautiously optimistic, but 0.3% margins need immediate attention.
This is concerning for new investors. If you bought the stock at its peak a month ago, you're already down 5.42%. The revenue drop of 23% suggests they're losing contracts or facing severe pricing pressure. In the CDMO space, competition from China and South Korea is intense. The company's strength in complex APIs is good, but they need a solid growth strategy. I'd rather wait for Q2 numbers before deciding anything. 📉
It's worrying that the stock rose despite this bad news. Maybe value investors are seeing a buying opportunity, or perhaps the broader market is bullish today. But let's be honest—plunging from 20.4% to 0.3% EBITDA margin is not a minor blip; it's a red flag. As someone who follows pharma stocks, I think the management needs to come out with a clear roadmap. Investors deserve transparency about what's causing this—p
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.