Concord Biotech Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Concord Biotech reported a subdued Q2 FY26 primarily due to temporary timing issues, including a delay in CDSCO written confirmations for EU exports and the deferment of a Middle East government tender. Despite the YoY revenue dip, underlying unit economics remain strong with adjusted EBITDA margins at 41%. Management expressed high confidence in a stronger H2 FY26 as deferred shipments resume and the new injectable facility at Valthera begins to scale.

Highlights

  • Revenue for Q2 FY26 stood at ₹247 crores, representing a 20% YoY decline but a 21% QoQ growth.

  • H1 FY26 Revenue reached ₹451 crores compared to ₹526 crores in H1 FY25, impacted by regulatory and geopolitical delays.

  • Reported EBITDA margin was 36%; however, excluding injectable facility start-up costs, the comparable EBITDA margin stood at 41%.

  • PAT for Q2 FY26 was ₹63 crores, with H1 FY26 PAT at ₹107 crores (24% margin).

  • API business contributed ₹345 crores to H1 revenue, while Formulations contributed ₹106 crores.

  • Management identified ₹40-45 crores in deferred revenue due to CDSCO renewal delays (₹20-25 cr) and Middle East tender deferment (₹20 cr).

  • Long-term guidance of 25% CAGR remains intact, supported by new injectable capacity and CDMO opportunities.

Key financials

  1. Revenue ₹247 Cr -20%YoY
  2. EBITDA ₹88 Cr +44%QoQ
  3. EBITDA Margin 36%
  4. PAT ₹63 Cr
  5. PAT Margin 24%

What they filed

Q1 FY27: revenue up 27.9%, net profit up 41.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue310 244 430 204 247 −20%278 +14%326 −24%261 +28%
EBITDA137 98 190 61 91 −34%102 +4%122 −36%87 +43%
Net profit99 74 142 43 63 −36%68 −8%90 −37%61 +42%
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

Share of H1 Revenue
₹902 Cr Total
  • API Business ₹345 Cr 38.2%
  • Domestic Business ₹247 Cr 27.4%
  • Export Business ₹204 Cr 22.6%
  • Formulation Business ₹106 Cr 11.8%

Guidance & targets

Revenue

  • Long-term CAGR Revenue · Long-term · High confidence 25%
    Concord has all the right ingredients in place to achieve a 25% CAGR, whether it is in terms of the facility, in terms of the product mix, or in terms of the new facilities.

    — Ankur Vaid, Joint MD & CEO

  • H2 Performance Revenue · H2 FY26 · Medium confidence Higher than H2 FY25
    But definitely, the H2 is going to be stronger than H2 of FY'25.

    — Ankur Vaid, Joint MD & CEO

Other

  • Immunosuppressant Revenue Contribution Other · next 2-3 years · Medium confidence Below 70%

    From 76% today

    newer products will take time to build up, but we anticipate bringing it below 70%.

    — Ankur Vaid, Joint MD & CEO

Capacity

  • Injectable Facility Revenue Potential Capacity · Long-term · Medium confidence ₹400-600 crores
    Now, this facility can do close to INR 400 crores to INR 600 crores, but the potential market for the products that we are manufacturing... is over INR 3,000 crores to INR 4,000 crores.

    — Ankur Vaid, Joint MD & CEO

Risks & concerns

  • Regulatory Delays (CDSCO)

    medium

    Renewal of Written Confirmation for EU exports was delayed by months, impacting Q2 shipments.

    Both acknowledged

  • Geopolitical Conflict (Middle East)

    medium

    A government supply contract in the Middle East was deferred due to regional uncertainties and ongoing conflict.

    Management acknowledged

  • US Tariff Uncertainties

    low

    Procurement patterns shifted temporarily but returned to normal after clarification that tariffs don't apply to generic drugs.

    Management downplayed

Areas of evasion (1)

  • Exact split of indirect API sales to the US market via domestic formulators.

Q&A highlights

2 direct
Quantification of Q2 Revenue Miss Direct
On account of the written confirmation, the total amount was close to around INR 20 crores to INR 25 crores... On account of the Middle East tender, that amount also stood at around INR 20 crores.

Confirms that the revenue dip was due to specific, recoverable timing issues rather than structural demand loss.

Asked by Chintan Sheth, Girik Capital

US Tariff Impact and Indirect Sales Partial
While our direct sales to the U.S. were around 10%, we are also supplying material to Indian companies... Therefore, the impact would also have come through the indirect route.

Highlights the complexity of tracking US exposure through domestic formulation customers and the temporary impact of tariff uncertainties.

Asked by Chintan Sheth, Girik Capital

Injectable Facility Ramp-up and Break-even Direct
It does take some amount of time for it to start generating levels for break-evens... for the initial year, we had mentioned that this is going to be primarily targeting the India market.

Sets expectations for the margin drag in the short term as the new facility scales up, primarily in the domestic market first.

Asked by Kartik, Bajaj Life

2 min read 5 chapters

Detailed narrative

Regulatory and Geopolitical Headwinds Impact Q2

Concord Biotech's Q2 FY26 revenue of ₹247 crores was significantly impacted by a delay in receiving Written Confirmation from CDSCO for EU exports, which deferred ₹20-25 crores of revenue into Q3. Additionally, a ₹20 crore government tender for the Middle East was deferred due to regional conflict. Management clarified that these are timing differences rather than business losses, with EU shipments already resuming in November 2025.

Margin Resilience Amidst Facility Start-up Costs

While reported EBITDA margins were 36%, the company highlighted that excluding the start-up costs of the new injectable facility at Valthera, margins remained robust at 41%. This adjusted figure is consistent with historical performance. Management expects margins to strengthen as the injectable facility ramps up utilization from its current 24% level.

Strategic Expansion into Injectables and CDMO

The newly commissioned injectable facility is currently targeting the Indian market with branded generics, with plans to enter emerging markets in 12-18 months. The facility has a long-term revenue potential of ₹400-600 crores. In the CDMO segment, Concord is actively engaged with innovator companies for commercial molecules, viewing this as a significant long-term growth driver.

Diversification of Product Portfolio

Concord is actively working to reduce its dependence on immunosuppressants, which currently account for 76% of revenue. The goal is to bring this below 70% in the next 2-3 years by scaling non-immuno products like Nystatin (anti-infective) and oncology APIs. Most new product development is now focused on the non-immuno segment to capture a larger market share.

Capacity Utilization and Infrastructure Readiness

The company provided detailed H1 utilization rates: Unit-1 (Dholka) at 76%, Valthera (OSD) at 24%, and Limbasi at 52%. The Limbasi facility's capacity is partially utilized for manufacturing raw materials and intermediates for other units, including Valthera. This backward integration is cited as a key competitive advantage for quality control and cost efficiency.

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