Concall AI

Dishman Carbogen Amcis Limited — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Dishman Carbogen reported a mixed Q3 FY26, with revenue growth of 5.5% but a net loss, partly due to delayed shipments expected in Q4 and higher commercial supply costs. However, the nine-month performance showed robust EBITDA growth and margin expansion. Management expressed strong confidence in future growth, driven by strategic integration, capacity ramp-up across global sites, and a strong pipeline in CDMO and Marketable Molecules, with clear targets for revenue and profitability improvement.

Highlights

Q3 FY26 Revenue stood at INR 720 crores, marking a 5.5% YoY growth.
Q3 FY26 EBITDA was INR 113 crores, with a margin of 15.7%.
The company reported a Net Loss of INR 12.97 crores for Q3 FY26.
9M FY26 Revenue showed a 4.3% YoY growth.
9M FY26 EBITDA reached INR 403 crores, with a margin of 19.4%, representing a 27.3% growth in margin YoY.
CDMO segment Q3 FY26 Revenue grew 6.7% to INR 630 crores.
Marketable Molecules segment 9M FY26 Revenue increased by 21.5% to INR 330 crores.
India business is targeted to achieve INR 500 crores revenue in the next 12-18 months, scaling to INR 800 crores thereafter.

Key financials

2 periods

Headline

Revenue
₹720 Cr
YoY +5.5%
EBITDA
₹113 Cr
EBITDA Margin
15.7%
Profit After Tax
₹-12.97 Cr

9M

Revenue Growth
4.3%
EBITDA
₹403 Cr
YoY +27.5%
EBITDA Margin
19.4%
YoY +22%
Profit After Tax
₹75.7 Cr

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	789	682	716	708	653 −17%	720 +6%	851 +19%	678 −4%
Expenses	642	542	564	567	504	607	688	618
EBITDA	147	140	153	141	149 +1%	113 −19%	163 +7%	60 −57%
Margin	19%	21%	21%	20%	23%	16%	19%	9%
Other income	4	8	-4	22	8	7	15	16
Interest	37	49	42	43	42	46	43	37
Depreciation	72	72	79	81	84	84	89	91
Profit before tax	42	27	28	39	31 −26%	-10 −137%	46 +64%	-51 −231%
Tax rate	21%	83%	-56%	39%	-114%	24%	53%	13%
Net profit	33	5	43	23	65 +97%	-13 −360%	22 −49%	-58 −352%
EPS	2.11	0.30	2.75	1.49	4.16	-0.83	1.39	-3.69

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 Q3 FY26 Revenue

₹720 Cr Total

CDMO Business ₹630 Cr 87.5%
Marketable Molecules ₹90 Cr 12.5%

Guidance & targets

Revenue

Q4 FY26 Revenue Revenue · Q4 FY26 · High confidence Higher by INR 20 crores than expected

However, not to be disappointed, we do expect that the revenues in the current quarter should be higher by that amount than as expected.

— Harshil Dalal, Global CFO
India Business Revenue Revenue · Next 12-18 months · High confidence INR 500 crores

So overall, our first target is to get to INR 500 crores of revenue, which should happen in the next 12 to 18 months is what our expectation is.

— Harshil Dalal, Global CFO
India Business Revenue Revenue · Next 3-5 years · High confidence INR 800 crores

And then the next target is to get to INR 800 crores of revenue coming out of India's side. So that we have a clear path as far as the next three to five years are concerned, where we want to take the India business to.

— Harshil Dalal, Global CFO
Bavla Site Revenue Revenue · FY26 · Medium confidence Closer to INR 250 crores

But yeah, it should be closer to about INR 250 crores by the by the end of the financial year.

— Harshil Dalal, Global CFO
ADC Molecule Revenue (Japanese customer) Revenue · FY26 · High confidence CHF 30 million

This year we expect it will be about CHF 30 million

— Harshil Dalal, Global CFO
ADC Molecule Revenue (Japanese customer) Revenue · Next year (FY27) · High confidence Closer to CHF 40 million

and for the next year it could be closer to about CHF 40 million

— Harshil Dalal, Global CFO
Incremental Revenue from 2nd ADC Co-investment Revenue · After 1.5 years · High confidence CHF 30 million

So that should contribute close to about CHF 30 million of incremental revenue.

— Harshil Dalal, Global CFO
French Subsidiary Revenue Revenue · FY26 · High confidence EUR 9.5 million to EUR 10 million

For the current financial year in the first nine months, we did a revenue of about EUR 7 million and we should end the year with close to about EUR 9.5 million to EUR 10 million of revenue

— Harshil Dalal, Global CFO
French Subsidiary Revenue Revenue · FY27 · High confidence About EUR 18 million

So that should be closer to about 18 million.

— Harshil Dalal, Global CFO
Swiss Entity Development Revenue Revenue · Next five years · High confidence Double

So, the target is that in the next five years, we should be able to double the development revenue from what it is right now

— Harshil Dalal, Global CFO

Profitability

FY26 EBITDA Margin Profitability · FY26 · High confidence 19.5% to 20%

So yes, so the target for the full year still stands. So, we could be ending the year with anywhere between 19.5% to 20%.

— Harshil Dalal, Global CFO
French Subsidiary Breakeven Profitability · Next financial year (FY27) · High confidence Breakeven

So, what we are expecting is that in the next financial year, we should be breakeven in that particular facility with both the manufacturing lines.

— Harshil Dalal, Global CFO
Consolidated EBITDA Margin Profitability · Next two years · High confidence 25-26%

So that's the first target to be achieved over the next two years

— Harshil Dalal, Global CFO
Consolidated EBITDA Margin Profitability · By end of 2030 · High confidence 30%

and then get to the 30% EBITDA margin mark by the end of 2030.

— Harshil Dalal, Global CFO

Capacity

India Production Capacity Utilization Capacity · 2-3 years · High confidence 2.5x of today

So India should be able to easily make a 2.5x of what it is doing today as far as the production capacity utilization is concerned.

— Harshil Dalal, Global CFO
French Facility Utilization Capacity · 2-3 years · High confidence Similar increase

And as far as the French facility is concerned, it should be a similar kind of number that we will be targeting in the next three years' time.

— Harshil Dalal, Global CFO
Shanghai Facility Utilization Capacity · Not specified · High confidence From 50% to 75%

we do expect that the utilization should go up from the current 50% to around 75%.

— Harshil Dalal, Global CFO

Debt

India Debt Debt · Next three years · High confidence Zero

So ideally speaking, we would want to make the India debt zero.

— Harshil Dalal, Global CFO

Risks & concerns

Geopolitical factors influencing customer preference for manufacturing locations (China vs. India).
medium

Management noted a trend of customers moving manufacturing from China to India due to Biosecure Act concerns, but also acknowledged diverse customer expectations and the presence of subsidiaries in China.

Both acknowledged
Delay in product shipment impacting quarterly revenue recognition.
low

Q3 FY26 revenue was lower by ~INR 20 crores due to delays in key intermediate supply and European holiday season, but expected to be realized in Q4 FY26.

Management acknowledged
Quarterly margin volatility due to changing revenue mix (commercial vs. development).
low

Q3 margins were lower due to a higher proportion of commercial supply (lower margin) compared to development revenue (higher margin) in the first half, but full-year targets remain intact.

Management acknowledged
Historical underperformance and regulatory issues at the India site.
low

The India site's performance was subdued for 4-5 years following eDQM observations in March 2020, but management states all regulatory hurdles (EDQM, FDA, Japanese PMDA) are now resolved, and ramp-up is visible.

Management acknowledged

Q&A highlights

3 direct

Progress of integration between Carbogen and Dishman entities, client visits, and commercialization outlook for India facilities. Direct

We already had the several visits in the last six months. We are working very closely with the Carbogen sales people... in the last month we had four site clients already coming, and we are seeing we already have the clients, the other clients coming in the next in the next quarter.

This question sought tangible evidence of the strategic integration's impact on client engagement and future commercial projects for the Indian sites, which management addressed with specific client visit numbers and positive trends.

Asked by Smit Shah

Revenue contribution and future potential of a blockbuster ADC molecule for a Japanese customer, especially with new indication approvals. Direct

So, we being the primary supplier, I mean, if you talk about the ADC, that would be close to about, say, maybe 1.5% at max of the final product price that the customer is realizing. So of the 4 billion, if you take 1.5%, that's roughly about 60 million... And of that, roughly about 60% is what is supplied by us and 40% by the other CDMO company.

The analyst questioned the seemingly low revenue share despite the drug's blockbuster status, prompting a detailed explanation of the company's specific role (linker and payload) in the ADC value chain and its proportional value capture, along with current and projected revenue figures.

Asked by Yash Tanna

Reasons for weak asset utilization and Return on Capital Employed (ROCE) over the past 6 years despite heavy investments, and what structural changes are expected to improve this. Direct

So first of all the right way to look at our assets would be after taking out the multiyear depreciation of the rupee against the foreign currency... Number two is that there is a huge amount of goodwill... Thirdly, if you see the capacity additions which have been done, one is the French facility... And second was in India, which was close to about 300 odd crores... the India site obviously had issues because of the eDQM observations that came in March of 2020.

This critical question challenged management on historical underperformance relative to investments, leading to a comprehensive explanation covering asset valuation complexities, recent capacity additions, and past regulatory hurdles in India, while outlining current strategies for ramp-up and improved returns.

Asked by Gunit Singh

4 min read 8 chapters

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.

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

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