Dishman Carbogen

Dishman Carbogen Amcis delivered a robust financial performance in Q2 FY26, with revenue reaching INR 652.6 crores. The company's EBITDA for the quarter stood at INR 149 crores, translating to an impressive EBITDA margin of 22.8%. For the first half of FY26, EBITDA grew significantly by 64.4% to INR 289.5 crores, with the H1 EBITDA margin at 21.3%, a substantial increase from 13.4% in the comparable period last year. Profit After Tax (PAT) for Q2 FY26 was INR 65 crores, nearly double the INR 33 crores reported in Q2 last year, indicating strong operational leverage and improved profitability.

The CDMO segment was the primary revenue driver in Q2 FY26, contributing INR 509 crores, or 78% of the total revenue. This segment achieved a strong EBITDA margin of 25.3% in Q2, up from 19% in Q2 last year, primarily due to a favorable product mix dominated by high-margin late-phase development work and supplies to a Japanese innovator. The Marketable Molecules segment also showed significant growth, with an 85% year-on-year increase in Q2, reaching INR 143 crores. For H1 FY26, this segment contributed INR 240 crores, growing 33.7% year-on-year, driven mainly by cholesterol and Vitamin D analogue businesses.

The French subsidiary has successfully obtained its GMP certificate, leading to increased requests for proposals for both early and late-phase projects. In China, the company is expanding its sales force to penetrate the domestic market more effectively. Swiss operations continue to focus on high-potency compounds and ADCs, with new investment projects initiated for larger capacities due to client demand. The company is also enhancing integration between its Indian and Swiss entities, including unifying sales organizations under Francois Baduel and IT operations under Sanjeev Jain, to improve efficiency and collaboration.

Dishman Carbogen Amcis is strengthening its position in Antibody Drug Conjugates (ADCs) by offering end-to-end solutions. This includes producing high-potent payloads and linkers in Switzerland, conjugating them with antibodies, and leveraging the French subsidiary for final product formulation, dosing, and lyophilization. The recent collaboration with Celonic is strategic, as it provides access to antibody development, completing the company's comprehensive ADC offering and attracting new clients by providing a one-stop-shop solution for customers.

Capital expenditure for Q2 FY26 was $7.3 million, bringing the H1 total to $13 million. The full-year capex target remains INR 200-210 crores. Net debt decreased to CHF 141 million as of September 30, 2025, from CHF 157 million at March 31, 2025. The total debt in INR terms is approximately INR 2,200 crores, with Swiss entity debt (INR 1,450-1,500 crores) having a lower cost of 3-3.5% and India debt (remaining) at 10-10.5%. The company plans a fundraise of INR 500-700 crores to retire high-cost India debt, aiming to improve profitability and free up cash.

For FY26, Dishman Carbogen Amcis expects 8-10% revenue growth for the entire business and aims for a 20% EBITDA margin. Looking ahead to FY27, the company targets INR 3,000 crores in CDMO revenue. The French facility is projected to reach EBITDA breakeven at EUR 18 million in revenue by the next financial year and achieve peak revenue of EUR 45 million with a 35% EBITDA margin within approximately four years. The Bavla site is targeted to reach INR 800 crores in revenue over the next three years, and the company's internal ROCE target is 25% over the next four to five years.

The company is undertaking a global digital transformation initiative to integrate its ERP systems. India has been on SAP for 16 years, and the Netherlands entity has upgraded to S/4HANA. The plan is to implement S/4HANA in the Swiss entity within the next 4-6 months, followed by Manchester, Shanghai, and France. This integration, estimated to cost CHF 15 million (approx. INR 150 crores), aims to centralize processes, reap benefits of operating leverage, and enhance overall efficiency across the group.