Dishman Carbogen Amcis Limited — Q2 FY26 earnings call

Call held 5 Nov 2025

Management summary

Dishman Carbogen Amcis reported a strong Q2 and H1 FY26, driven by robust operating profit and cash generation. The company saw significant margin expansion, particularly in its CDMO segment due to late-phase molecule supplies. Strategic initiatives like the French subsidiary's GMP certification, expansion in the Chinese market, and integration efforts between Swiss and Indian operations are progressing well, contributing to a positive outlook for future growth and profitability.

Highlights

  • Revenue for Q2 FY26 stood at INR 652.6 crores.

  • EBITDA for Q2 FY26 was INR 149 crores, with an EBITDA margin of 22.8%.

  • H1 FY26 EBITDA grew by 64.4% to INR 289.5 crores, with a margin of 21.3%.

  • Profit After Tax (PAT) for Q2 FY26 was INR 65 crores, significantly up from INR 33 crores in Q2 last year.

  • The CDMO segment contributed 78% of Q2 revenue (INR 509 crores) and achieved a 25.3% EBITDA margin.

  • The Marketable Molecules segment grew 85% YoY in Q2, contributing INR 143 crores.

  • Net debt declined to CHF 141 million as of September 30, 2025, from CHF 157 million on March 31, 2025.

  • The company targets 8-10% revenue growth and 20% EBITDA margin for FY26.

Key financials

2 periods

Headline

  • Revenue
    ₹652.6 Cr
  • EBITDA
    ₹149 Cr
  • EBITDA Margin
    22.8%
  • PAT
    ₹65 Cr
    YoY +97%
  • Finance Cost
    ₹42 Cr

H1

  • EBITDA
    ₹289.5 Cr
    YoY +64.4%
  • EBITDA Margin
    21.3%
  • PAT
    ₹88.6 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 (Q2 FY26)
₹652 Cr Total
  • CDMO ₹509 Cr 78.1%
  • Marketable Molecules ₹143 Cr 21.9%

Order book

high confidence

Total value

CHF 250 Mn

as of 2025-09-30 quantified

Pipeline

other

Development pipeline for Carbogen Amcis

The company has a development pipeline of CHF 150 million and a commercial order book of CHF 100 million for Carbogen Amcis as of September 30, 2025.

Source: Q&A

Capital allocation

high confidence
  • Capex $7.3 Mn this quarter · ₹200 Cr (FY26) planned
    • Bavla site refurbishment (including maintenance CapEx) ₹50 Cr
    The capital expenditure that was done during Q2 was about $7.3 million as compared to the first full half of the year, which was about $13 million. So more or less, as we have been saying, the CapEx for the full year should be close to about INR 200 crores to INR 210 crores. So, we are very much on target as far as that particular CapEx is concerned.
  • Debt Gross ₹2,200 Cr · Net CHF 141 Mn
    The net debt, excluding these liabilities, also showed a decline as compared to June as well as March 31, 2025, where now the net debt stands at about CHF 141 million as compared to CHF 157 million as of March 31, 2025. ... The total debt, so in INR terms would be close to about INR 2,200-odd crores. And out of this gross debt, roughly about, I would say, close to INR 1,450 crores to INR 1,500 crores would be sitting at the Swiss entity, where the average cost of borrowing is roughly around 3% to 3.5% now. The remaining part of the borrowing is sitting at the India level, where the average cost of borrowing will be about 10% to 10.5%.
  • Liquidity Cash ₹600 Cr The company has cash of roughly INR 600 crores, which can be used to pay down India debt and fund working capital.
    So apart from this, we obviously have cash of roughly about INR 600-odd crores. But having said that, yes, the idea is to try and pay down the India debt as quickly as possible because that will result into a better conversion from the EBIT level to the PBT and the PAT level as far as the P&L is concerned.

Guidance & targets

Revenue

  • Total Revenue Growth Revenue · FY26 · High confidence 8-10%
    So as far as the full year is concerned, yes, we do expect close to about 8% to 10% kind of growth in the revenue.

    — Harshil Dalal

  • CDMO Revenue Revenue · FY27 · High confidence INR 3,000 crores
    Yes. Yeah. So, that's very much, what we have as a target in our mind. That is something that we would want to achieve, in FY27. So, yes, that's exactly what we have as a plan.

    — Harshil Dalal

  • Bavla Site Revenue Revenue · next three years · High confidence INR 800 crores
    And in order to touch the INR 800 crores, the target is that we should be able to touch that over the next three years.

    — Harshil Dalal

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 20%
    But as far as the operating margins are concerned or the EBITDA is concerned, where we have guided growth of about 18% to 20%, I think we should be able to get to the 20% mark basis results that we have achieved in the first half and what they're expecting in the second half of the year.

    — Harshil Dalal

  • French Facility EBITDA Breakeven Revenue Profitability · next financial year · High confidence EUR 18 million
    So, as far as the breakeven point is concerned, so that's going to be about EUR 18 million where we would breakeven at an EBITDA level. So, that is something we should be surpassing in the next financial year.

    — Harshil Dalal

  • French Facility Peak EBITDA Margin Profitability · High confidence 35%
    That would be, with all the lines running at full speed, that would be close to about 45 million of revenue. And at that revenue, it can do an EBITDA margin of about 35%.

    — Harshil Dalal

ROCE

  • ROCE Margin ROCE · next four to five years · High confidence 25%
    So, our internal target is to get to the 25% ROCE margins over the next four years to five years.

    — Harshil Dalal

Debt

  • Fundraise for India Debt Retirement Debt · High confidence INR 500-700 crores
    Yes. The purpose is going to be to retire the debt in India. So, that is roughly about INR 700-odd crores. So, you know, we would look at somewhere like INR 500 crores to INR 700 crores.

    — Harshil Dalal

What to watch in Q3 FY26

French Facility EBITDA Breakeven

next financial year
Current Expected EBITDA losses in current FY
Target EBITDA breakeven (EUR 18 million revenue)

Why it matters

Achieving breakeven at the French facility is crucial for overall profitability improvement and validates strategic investments.

So, as far as the breakeven point is concerned, so that's going to be about EUR 18 million where we would breakeven at an EBITDA level. So, that is something we should be surpassing in the next financial year.

Risks & concerns

  • High interest cost in India

    medium

    The interest cost in India is significantly higher (10-10.5%) compared to Swiss borrowings (3-3.5%), impacting profitability.

    Management acknowledged

  • Working capital blockage due to inventory

    medium

    Customers mandate keeping certain levels of API stock, leading to inventory buildup and working capital blockage.

    Management acknowledged

  • EBITDA losses from French facility

    low

    The French facility is expected to continue incurring EBITDA losses in the current financial year before reaching breakeven next year.

    Management acknowledged

Q&A highlights

8 direct
CDMO revenue vs. EBITDA margin trend Direct
No. So first of all, it would be difficult to see our business QoQ because it all depends upon whether in a particular quarter it is more of the development revenue or the commercial revenue, which is taking up a larger portion of the revenue. So like, for example, in this quarter, as I mentioned earlier, it was more of late Phase 3 molecule, including the molecule that we supplied to the Japanese innovator, which was a significant portion of the overall revenue. And when we talk about development late Phase 3, that's where we make our highest margins and the material consumption is hence extremely low as compared to the commercial. And that is also one of the reasons why you see a higher gross margin.

Management explained that higher Q2 EBITDA margins despite lower CDMO revenue were due to a favorable mix towards high-margin late-phase development and Japanese innovator supplies, which have lower material costs.

Asked by Abhishek Jain

French subsidiary's financial performance and breakeven Direct
So, as far as the breakeven point is concerned, so that's going to be about EUR 18 million where we would breakeven at an EBITDA level. So, that is something we should be surpassing in the next financial year. In the current year, we expect that we would still have EBITDA losses coming from the French facility.

Clarified the revenue required for the French facility to reach EBITDA breakeven (EUR 18 million) and the timeline for achieving it (next financial year), indicating continued losses in the current year.

Asked by Kashyap Karthi

Naroda facility FDA approval status Direct
No. We have already received formal approval. The EIR has already been received.

Confirmed the successful receipt of formal FDA approval (EIR) for the Naroda facility, removing a potential regulatory overhang.

Asked by Kashyap Karthi

Bavla site utilization and refurbishment cost Direct
Well, also, so, what the idea for Bavla is that we try to utilize the existing units which are running to the maximum extent possible before we start refurbishing the other units. So, only exception to that would be the hypo facility in Bavla, where we are looking at one or two projects which could come into that particular unit, which is a specific unit for highly potent compounds, where we might have to ramp up the refurbishment much ahead of otherwise, we would need to. ... I think the annual spend should not be more than roughly about INR 50 crores to INR 60 crores. This is all including the maintenance CapEx as well that would need to be incurred.

Provided clarity on the strategy for Bavla's underutilized units, prioritizing existing capacity before refurbishment, and quantified the annual capex for refurbishment and maintenance.

Asked by Smit Shah

Interest cost increase and future outlook Direct
No. So, the interest cost had increased last year. Again, this year, you know, we have already seen the interest cost going down, but then there is also an FX impact when we do the translation of those interest costs from Swiss francs to INR. So, what we are already seeing at the Swiss entity, on a net basis, the borrowings will be close to about 100 million. So, what we are already seeing is that those interest costs have already come down, and those will further go down as we move into the following quarters. So, that is where the interest cost reduction is.

Explained the drivers behind the interest cost fluctuations, including FX impact, and indicated an expectation for further interest cost reduction in coming quarters, particularly from Swiss borrowings.

Asked by Smit Shah

ADC end-to-end solutions and collaboration with Celonic Direct
To create an ADC antibody drug conjugate, you need the payload, which is the high potent compound, a linker, which is often a peptide. We connect those two and then we conjugate with the antibody. And this is what we can do out of Switzerland. And we would be now A, with the collaboration with Celonic is that we get the antibody as well. And furthermore, together with the French subsidiary, we can ship the final product, the ADC product to the French subsidiary for dosing and dispensing into the virus and lyophilization.

Detailed the comprehensive end-to-end ADC (Antibody Drug Conjugate) services offered, highlighting the strategic importance of the Celonic collaboration for antibody supply and the French facility for final product formulation.

Asked by Mythili Shah

ERP cloud migration and cost Direct
Well, the total estimate cost would be close to, I mean, everything put together would be close to about, I would say, 15 million. ... No. CHF 15 million, probably about INR 150 crores.

Quantified the total estimated cost for the group-wide ERP cloud migration to SAP S/4HANA at CHF 15 million (approx. INR 150 crores), providing insight into IT investment.

Asked by Ramanuj Chandak

COGS reduction in Q2 Direct
Well, yes. As I already explained earlier, the COGS is lower mainly on account of a significantly high contribution from the Phase 3 molecule in terms of the revenue. And that is where, obviously, the material cost is quite low. So, that is the main reason why in this quarter, the COGS were extremely low.

Explained that the drastic reduction in COGS was primarily due to a higher contribution from high-margin, low-material-cost Phase 3 molecules in the revenue mix for the quarter.

Asked by Sathya

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Detailed narrative

Strong Q2 and H1 FY26 Financial Performance

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.

CDMO and Marketable Molecules Segment Performance

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.

Strategic Business Updates and Integration Efforts

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.

ADC Capabilities and Celonic 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 and Debt Management

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.

Guidance and Long-Term Targets

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.

ERP Integration and Digital Transformation

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.

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