Dishman Carbogen Amcis Limited — Q1 FY26 earnings call

Call held 20 Aug 2025

Management summary

Dishman Carbogen Amcis reported a strong Q1 FY26, driven by robust performance in its CDMO segment and improved profitability in Marketable Molecules. The company achieved significant revenue and EBITDA growth, alongside a reduction in net debt. Regulatory successes, including a clean USFDA inspection at Naroda and GMP certification for its French subsidiary, underscore operational excellence and open new growth avenues, particularly in the Chinese market and soft-gel drug products.

Highlights

  • Total Revenue for Q1 FY26 stood at ₹708 crores, marking a 35% YoY growth from ₹523 crores in Q1 FY25.

  • EBITDA for the quarter was ₹140.68 crores, a significant increase from ₹28.97 crores in the comparable prior year quarter.

  • EBITDA Margin improved to 19.9% for Q1 FY26.

  • Profit After Tax (PAT) for the quarter was ₹23.4 crores.

  • CDMO segment revenue grew by 45% YoY to ₹611 crores, contributing 86.3% to overall business.

  • Marketable Molecules segment revenue was ₹96.8 crores, with its EBITDA margin significantly improving to 32.4% from 4.5% YoY.

  • Net debt declined to CHF 149.69 million as of June 30, 2025, from CHF 157.6 million as of March 31, 2025.

  • Successful USFDA inspection at Naroda site with no 483 Form issued.

Key financials

  1. Revenue ₹708 Cr +35%YoY
  2. EBITDA ₹140.68 Cr +385.6%YoY
  3. EBITDA Margin 19.9%
  4. PAT ₹23.4 Cr
  5. Employee Expenses ₹352 Cr +11%YoY
  6. Finance Cost ₹42.76 Cr
  7. Tax Expense ₹15 Cr
  8. Depreciation & Amortization ₹81 Cr

What they filed

Q1 FY27: revenue down 4.2%, net profit down 352.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue789 682 716 708 653 −17%720 +6%851 +19%678 −4%
EBITDA147 140 153 141 149 +1%113 −19%163 +7%60 −57%
Net profit33 5 43 23 65 +97%-13 −360%22 −49%-58 −352%
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 Revenue
₹707.8 Cr Total
  • CDMO ₹611 Cr 86.3%
  • Marketable Molecules ₹96.8 Cr 13.7%

Order book

high confidence

Total value

CHF 77 Mn

as of 2025-06-30 quantified

Pipeline

other

Development pipeline for Carbogen Amcis

Order income has picked up, and we are convinced it continues like that.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex $5.6 Mn this quarter · CHF 25 Mn (FY26) planned
    The capital expenditure done in the first quarter of the current financial year stood at about US$5.6 million.
  • Debt Net CHF 149.69 Mn
    • Repayment Reduction of net debt from CHF 157.6 million to CHF 149.69 million in Q1 FY26. CHF 7.91 Mn
    The net debt, excluding the lease liability, stood at 149.69 million Swiss francs as compared to 157.6 million Swiss francs as of 31st of March '25.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence ₹3,000 crores
    we had given for FY '26 as a whole in terms of revenue, like somewhere around Rs. 3,000 crores top line

    — Harshil Dalal, Global CFO

  • China Business Growth Revenue · FY26 · Medium confidence significant
    So, we are expecting quite significant, but I cannot give you a number because we are at the very beginning of this process.

    — Stephan Fritschi, CEO

Profitability

  • FY26 EBITDA Margins Profitability · FY26 · High confidence 20% to 22%
    and 20% to 22% kind of margins?

    — Harshil Dalal, Global CFO

  • Marketable Molecules Margins Profitability · FY26 · Medium confidence higher than last financial year
    But overall, we do expect that the margins for the full year for that particular segment should be higher than what we posted in the last financial year.

    — Harshil Dalal, Global CFO

  • French Subsidiary EBITDA Loss Profitability · FY26 · Medium confidence curtail down
    So, we do expect that as the business keeps on increasing throughout the course of the year, the EBITDA loss should, on a proportional basis, should actually curtail down.

    — Harshil Dalal, Global CFO

Debt

  • Debt Reduction Debt · FY26 · High confidence at least 10 million Swiss francs
    for this year, initially we had put up a target of reduction of debt by at least 10 million Swiss francs.

    — Harshil Dalal, Global CFO

Capex

  • FY26 Capex Capex · FY26 · High confidence 25 million Swiss francs
    So, overall, for the full year, we had given a guidance of a total CAPEX of about 25 million Swiss francs.

    — Harshil Dalal, Global CFO

What to watch in Q2 FY26

Debt Reduction Progress

next quarter
Current CHF 149.69 million net debt (down from CHF 157.6 million)
Target Further reduction towards FY26 target of at least CHF 10 million

Why it matters

Debt reduction is a key focus for the company to improve financial health and reduce interest costs.

So, for this year, initially we had put up a target of reduction of debt by at least 10 million Swiss francs. And if you see in the first quarter itself, you know, there is a reduction of almost about 8 million.

Risks & concerns

  • Phase 3 API projects on hold

    medium

    Two Phase 3 API projects have been put on hold by customers, leading to their removal from the active pipeline due to uncertainty of restart.

    Management acknowledged

  • French subsidiary EBITDA loss

    medium

    The French subsidiary incurred an EBITDA loss of approximately 2 million CHF in Q1 FY26, though management expects it to curtail as business picks up.

    Management acknowledged

  • Tariff impact on commercial products

    low

    While tariffs are a challenging topic, pharma products are currently exempted, and direct exports to the US are limited, mitigating immediate impact.

    Management acknowledged

Q&A highlights

8 direct
Debt reduction strategy and fundraising plans Direct
So, for this year, initially we had put up a target of reduction of debt by at least 10 million Swiss francs. And if you see in the first quarter itself, you know, there is a reduction of almost about 8 million. So, we are very much in line to achieve that, but we might want to do even more than that.

Analyst questioned the seriousness of debt reduction given the high debt load, and management confirmed a specific target and progress.

Asked by Subrata Sarkar

Marketable Molecules segment growth and profitability Direct
So, on the cholesterol front, again, the cholesterol is broken down into various grades like SF, NF, HP. These are the different grades of cholesterol which have different applications. So, the cholesterol SF, which largely goes into animal feed, we have actually consciously taken a decision to reduce the sales of SF because it was not making that much money for us.

Clarified the strategy behind the Marketable Molecules segment's revenue dip but margin improvement, indicating a focus on higher-profit products.

Asked by Subrata Sarkar

Impact of tariffs on US exports Direct
So, as of now, you know, as Stephan mentioned, as we stand today, these tariffs are not impacting us because the products that we sell are exempted. What we have done is an analysis of our total shipments, how much goes to the U.S., how much to the rest of the world, and excluding the services business because what we expect is that at least the services business would be insulated from the tariff. But only time will tell.

Addressed a key macro risk, reassuring investors that current pharma products are exempt and direct US exports are limited, minimizing tariff impact.

Asked by Subrata Sarkar

ADC (Antibody Drug Conjugate) capabilities and strategy Direct
We can produce the warhead in our hipo compartments... We can produce the linker... And then we can do the conjugation with an antibody... What we cannot do at the moment is producing the antibody. The antibody... we need to outsource or we need to buy the antibody.

Provided a detailed breakdown of the company's specific capabilities within the complex ADC value chain, highlighting what they do in-house and what is outsourced.

Asked by Subrata Sarkar

Strategic rationale for new segment reporting (CDMO vs Marketable Molecules) Direct
So, essentially, what we have done is that, since CDMO is a major focus area for us, and what we wanted to, you know, as we have been saying, we have been trying to integrate the entire India business and the Swiss business. So, the right way to look at our business would be more like CDMO as a whole, rather than breaking it up into entities.

Explained the strategic shift in segment reporting, emphasizing the integrated CDMO focus across geographies for better clarity and alignment.

Asked by Smit Shah

Status of Phase 3 API pipeline projects Direct
Yes, for at least two of the APIs, the projects have been put on hold. So, you know, we are just waiting for further clarity from the customers. And hence, since there was if and but, so that was the reason, you know, we have kind of removed it from the Phase 3 number.

Revealed that some Phase 3 projects were put on hold, impacting the pipeline count, which is a key indicator for future growth in CDMO.

Asked by Vignesh Ayyer

Revenue potential and strategy for soft-gel business Direct
So, what the strategy is that right now we are targeting the semi-regulated market. So, we have obtained approvals from some of the countries in the semi-regulated market, and we have started selling to those markets.

Provided insight into the market strategy for the newly commercialized soft-gel drug products, focusing on semi-regulated markets and initial successes.

Asked by Satish Bhatt

Plans for the HiPo (High Potency) plant in Bavla, India Direct
Yes, that is a very good question. So, this is where we are working very hard within India and Switzerland. So, we are evaluating several projects. We are currently just recently discussing one product, which is a Category-3. And we are trying to evaluate. We also discuss internally with finance how to restart everything.

Addressed the underutilized HiPo facility, indicating active efforts to restart operations and secure new orders, which could be a future revenue driver.

Asked by Satish Bhatt

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Dishman Carbogen Amcis delivered a strong Q1 FY26, reporting a total revenue of ₹708 crores, a 35% increase year-over-year from ₹523 crores. EBITDA surged to ₹140.68 crores from ₹28.97 crores in Q1 FY25, resulting in an EBITDA margin of 19.9%. Profit After Tax (PAT) for the quarter stood at ₹23.4 crores. Employee expenses rose by 11% to ₹352 crores, partly due to Swiss franc fluctuations, while finance costs increased to ₹42.76 crores, influenced by higher interest rates.

Carbogen Amcis Subsidiaries Update

The French subsidiary (Saint-Beauzire), focusing on drug products, secured GMP certification for its external warehouse, its second such certificate. This has led to a positive market response, increased project awards, and a higher win rate. The Shanghai subsidiary, which also received GMP certification earlier this year, is now focusing on attracting Chinese customers by increasing its sales force and tightening collaboration with Indian teams. Swiss operations are running smoothly, with a strong emphasis on small-scale HIPO activities related to drug linker business, and an expansion project with a Japanese partner is proceeding as planned.

Indian Operations & Regulatory Success

The Naroda site successfully underwent a USFDA surveillance inspection in June 2025, concluding without any observations or a 483 Form being issued. This marks a significant regulatory achievement, following other major approvals for Bavla and Naroda sites in the last 1.5 years. The company has also aligned Naroda's API manufacturing, QC, and warehouse facilities with Bavla's standards and is working towards harmonizing quality systems across Indian sites. Several soft-gel drug products manufactured at the Bavla facility have received approvals in Asian Pacific and South American countries, with commercialization already initiated under the Dishman Carbogen brand.

Strategic Focus: CDMO & Marketable Molecules

The company has reclassified its segments into CDMO and Marketable Molecules to align with its annual report and strategic focus. The CDMO segment, encompassing Swiss, Manchester, Shanghai, France, and Indian CDMO business, reported ₹611 crores in revenue, a 45% YoY increase, with an EBITDA margin of 17.9%. The Marketable Molecules segment, including vitamin D analogs, cholesterol, quats, and soft-gel capsules, generated ₹96.8 crores in revenue. This segment saw a substantial improvement in EBITDA margin to 32.4%, driven by a conscious decision to reduce sales of lower-profit cholesterol SF grades.

ADC Capability and Co-investment

Dishman Carbogen Amcis possesses strong capabilities in the Antibody Drug Conjugate (ADC) value chain, specifically in producing warheads, linkers, and performing conjugation with antibodies. The company outsources or procures antibodies from customers or partners. A co-investment agreement was entered into this quarter with a large Japanese customer for expansion in Switzerland, primarily for ADC product supply. The total investment for this expansion is 25 million Swiss francs, with Dishman's contribution being internal hours and a prior investment of 10 million Swiss francs in the first round.

Debt Reduction & Capital Expenditure

The company demonstrated progress in debt reduction, with net debt declining to CHF 149.69 million as of June 30, 2025, from CHF 157.6 million at the end of March 2025. Management has set a target to reduce debt by at least CHF 10 million for FY26. Capital expenditure for Q1 FY26 was US$5.6 million, significantly below the full-year guidance of CHF 25 million. The company expects finance costs to decrease throughout the current financial year.

Outlook and Growth Drivers

Management expressed confidence in achieving its FY26 targets of approximately ₹3,000 crores in revenue and 20-22% EBITDA margins. The French subsidiary's business is expected to pick up, and its EBITDA loss should curtail. The company anticipates significant growth from its newly certified Chinese operations, with efforts underway to attract more local customers. Overall, the company sees positive momentum across all fronts, with increasing order income and a focus on cost-effectiveness and efficiency gains.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Healthcare earnings calls