Detailed Narrative
Q3 FY26 Performance and Revenue Delay
Dishman Carbogen reported Q3 FY26 revenue of INR 720 crores, a 5.5% increase from INR 682 crores in the comparable quarter last year. However, revenue was approximately INR 20 crores lower than expected due to delays in product shipments, attributed to key intermediate supply issues and the European holiday season. Management expects this revenue to be realized in Q4 FY26. The company reported a negative Profit Before Tax of INR 10 crores and a negative Profit After Tax of INR 12.97 crores for the quarter.
9M FY26 Financial Overview
For the nine months ending December 31, 2025, Dishman Carbogen achieved a revenue growth of 4.3%. EBITDA for this period stood at INR 403 crores, significantly up from INR 316 crores in the prior year, translating to an EBITDA margin of 19.4%, which is a 27.3% growth in margin compared to 15.9% in 9M FY25. Profit Before Tax for 9M FY26 was INR 58.76 crores, and Profit After Tax was INR 75.7 crores, showing a significant improvement over the previous financial year.
Segmental Performance: CDMO and Marketable Molecules
The CDMO business reported Q3 FY26 revenue of INR 630 crores, growing 6.7% year-on-year, and 9M FY26 revenue of INR 1,750 crores. The CDMO segment's EBITDA margin for 9M FY26 improved to 19.7% from 17.2% last year. The Marketable Molecules segment saw flattish Q3 FY26 revenue at INR 90 crores but demonstrated strong 9M FY26 growth, with revenue reaching INR 330 crores, a 21.5% increase, primarily driven by vitamin D analogs and cholesterol. The 9M FY26 margin for Marketable Molecules significantly increased by 920 bps to 17.5% from 8.3% last year.
Carbogen Amcis Operational and Strategic Updates
Carbogen Amcis, the Swiss subsidiary, reported increased interest in drug product capabilities, securing more RFPs and projects, including late-phase projects. The Vionnaz site successfully passed a mock FDA audit. The co-investment expansion project with a Japanese customer is on track, with detailed engineering underway for construction at Aarau and Neuland facilities. The company is also focusing on ADC-related molecules, particularly in oncology, which are in the pipeline.
India Operations Ramp-up and Integration
The company is actively integrating its Indian facilities (Bavla and Naroda) with Carbogen Amcis, aiming to offer a wider portfolio including large quantities from India. They have submitted RFPs worth approximately INR 1,200 crores from the India site, expecting 30-35% conversion into orders. Management targets India business revenue to reach INR 500 crores in the next 12-18 months, and further to INR 800 crores in the subsequent 3-5 years. The Bavla site is expected to contribute closer to INR 250 crores by FY26 end.
ADC Business Outlook and Capacity Expansion
Dishman Carbogen is a primary supplier of payload and linker for a blockbuster ADC molecule for a Japanese customer. Revenue from this molecule is projected to be CHF 30 million in FY26, increasing to CHF 40 million in FY27. A second round of co-investment for CHF 25 million is expected to generate an incremental CHF 30 million in revenue after 1.5 years. The partnership with Celonic for antibodies enables an end-to-end solution (antibodies, conjugation, payload, linker, and drug product formulation), attracting new customers, especially small biotechs.
French Subsidiary Performance and Outlook
The French subsidiary, which commenced operations last year, is gaining significant interest and booking orders, especially after receiving ANSM approval. For FY26, the French facility is expected to generate EUR 9.5 million to EUR 10 million in revenue. Management anticipates the facility to reach breakeven in FY27, with revenues projected to be around EUR 18 million for that year, driven by increased activity and the synergy between drug substance and drug product offerings.
Capacity Utilization, Margin Targets, and Debt Reduction
Current capacity utilization across sites includes Swiss at 75%, French at 20%, Netherlands at 60%, Manchester at 75%, Shanghai at 50%, and India at 20-25%. The company aims to significantly increase utilization, targeting a 2.5x increase in India's production capacity utilization and similar growth for the French facility in the next 2-3 years. Consolidated EBITDA margin targets are 25-26% in the next two years, escalating to 30% by the end of 2030. India's debt, currently around INR 750 crores, is targeted to be reduced to zero within the next three years, primarily through operational cash flow generation.