Cohance Lifesciences Limited — Q2 FY26 earnings call

Call held 28 Oct 2025

Management summary

Cohance Lifesciences used its Q2 FY26 update call to announce a significant organizational restructuring following the resignation of its Managing Director. The company is moving toward a vertical-led structure with three new business CEOs reporting to the Executive Chairman to accelerate its $1 billion revenue target for 2030. While no financial results were disclosed due to a silent period, management highlighted strong momentum in the CDMO pipeline, including a key Phase 3 win from a Japanese client.

Highlights

  • Management announced a major leadership transition with Managing Director Dr. Prasada Raju stepping down; he will remain for a transition period until the end of the fiscal year.

  • Reiterated long-term strategic vision to reach US$1 billion in revenue by 2030, driven by three core business engines: Pharma CDMO, API Plus, and Specialty Chemicals.

  • Confirmed a significant milestone with a large Japanese customer confirming a Phase 3 order, triggering the capitalization of the SuryaPet facility.

  • The Oligonucleotide unit (Surya) in Nacharam has completed equipment validation and is on track for commissioning in Q4 FY26.

  • Management disclosed that the Nacharam FTF unit's recent OI classification impacts less than 1% of overall EBITDA; remediation is underway with U.S. and Indian consultants.

  • The company is transitioning from a collection of six family-owned businesses into a single integrated global platform with a new brand identity unveiled at CPHI Frankfurt.

  • Management maintained a 'silent period' regarding specific Q2 financial numbers, focusing the call entirely on leadership and operational updates.

Concerns

  • Leadership Instability

What they filed

Q1 FY27: revenue down 25.6%, net profit down 97.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue594 653 769 484 498 −16%482 −26%568 −26%360 −26%
EBITDA204 233 223 104 131 −36%103 −56%117 −48%26 −75%
Net profit139 154 123 53 94 −32%47 −69%35 −72%1 −97%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Nacharam FTF Unit
    1% EBITDA Impact

Guidance & targets

Revenue

  • Total Revenue Vision Revenue · by 2030 · High confidence US$1 billion
    fundamentally, our vision of a US$1 billion business by 2030 remains there. We are committed to reach there.

    — Vivek Sharma, Executive Chairman

Capacity

  • Oligonucleotide Unit Commissioning Capacity · Q4 FY26 · High confidence Commissioned
    Surya, our oligonucleotide unit... remains on track for commissioning in Q4, marking another important milestone.

    — Vivek Sharma, Executive Chairman

Other

  • Cash Flow Status Other · by 2030 · Medium confidence Cash Positive
    the vision is very clear that we will be cash positive at the end of the strategy period.

    — Himanshu Agarwal, CFO

Risks & concerns

  • Leadership Instability

    high

    The resignation of MD Dr. Prasada Raju follows the earlier exit of Dr. Sudhir Singh, raising concerns about senior-level attrition.

    Analyst acknowledged

  • Regulatory Remediation at Nacharam

    medium

    The Nacharam FTF unit received an OI classification; while EBITDA impact is low (<1%), it requires U.S. consulting expertise for remediation.

    Management acknowledged

  • Short-term Margin Pressure from Talent Buildup

    low

    Hiring new business CEOs and a platform COO while legacy roles transition may cause temporary cost overlaps.

    Analyst acknowledged

Areas of evasion (2)

  • Specific financial performance due to the silent period.
  • Detailed reasons for the MD's resignation beyond 'personal priorities'.

Q&A highlights

3 direct
Leadership Churn and Transition Management Direct
There is no single dependency on Dr. Prasada on any specific client. All these relationships were already transferred as part of normal transition to the business CEOs.

Investors were concerned about client retention following the MD's exit; management clarified that the new vertical CEOs already own these relationships.

Asked by Chirag Dagli, DSP Asset Managers

Cultural Integration of Six Entities Direct
Somebody started saying we are a combination of six family-owned businesses that have now become part of who we are today... there is definitely a transition in culture.

Highlights the execution risk of merging multiple legacy cultures into a single corporate platform, which management acknowledges as an ongoing journey.

Asked by Karthikeyan, Suyash Advisors

Impact of US Biosecure Act Direct
Indian companies will definitely continue to benefit... overall, this is a positive sign in my view for India and the India CDMO and CRO industry.

Confirms the tailwinds for Indian CDMOs as global pharma companies seek 'China-free' supply chain strategies.

Asked by Shyam Srinivasan, Goldman Sachs

2 min read 5 chapters

Detailed narrative

Strategic Leadership Overhaul

Cohance is moving away from a traditional MD-led structure to a verticalized model where three business CEOs (Pharma CDMO, API Plus, and Specialty Chemicals) report directly to the Executive Chairman. This change follows the resignation of MD Dr. Prasada Raju, who will assist in the transition until the end of the fiscal year. A new Platform COO role has also been created to oversee operations from Hyderabad, bringing 30 years of experience to strengthen the execution backbone.

CDMO Pipeline and Milestone Wins

The company reported significant progress in its CDMO business, completing four major customer orders successfully. A key highlight is the confirmation of a Phase 3 order from a large Japanese customer, which management described as a 'very important milestone.' This order will lead to the capitalization of the SuryaPet facility, reinforcing the company's readiness for commercial-scale execution of Phase 3 products.

Advanced Therapy Expansion

Cohance is aggressively expanding into niche modalities like Oligonucleotides and Antibody-Drug Conjugates (ADCs). The Surya oligonucleotide unit in Nacharam has finished equipment validation and is slated for commissioning in Q4 FY26. Additionally, the ADC business is gaining traction through partnerships with NJ Bio in the U.S., and the company recently won a large contract with a major CDMO for ADC payloads.

Regulatory and Remediation Updates

Management addressed the recent OI (Official Action Indicated) classification of the Nacharam FTF unit. While they emphasized that this business represents less than 1% of overall EBITDA, they are taking it seriously by appointing a leading U.S. FTA consulting firm alongside an Indian firm to guide the remediation process. They remain proactive in addressing agency observations to ensure compliance.

M&A and Capital Allocation

The company maintains an in-house M&A team of two experienced professionals and is actively scouting for 'niche tech' capabilities rather than just capacity. Management's preference is to fund these acquisitions through internal accruals to remain cash positive by the end of the strategy period, though they remain open to partial debt if a large, strategic opportunity arises.

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