Dishman Carbogen Amcis Limited

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.

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.

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.

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.

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.

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.

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.