Dishman Carbogen

Dishman Carbogen Amcis delivered a strong Q4 FY25, with revenue growing 9.4% year-on-year. For the full fiscal year 2025, revenue increased by 3.7% to INR 2,711 crores. The company achieved an EBITDA of INR 472 crores for FY25, translating to a 17.4% margin, significantly higher than the reported INR 296 crores in FY24. Q4 FY25 saw an EBITDA of INR 153 crores and a robust margin of 21.4%, driven by effective cost control measures. Profit Before Tax for Q4 FY25 was INR 27.7 crores, and for the full year, it stood at INR 19.3 crores.

The Carbogen Amcis CRAMS segment was a key driver, with Q4 FY25 revenue growing 9% to INR 489 crores and achieving a strong 25% EBITDA margin. For the full year, this segment contributed INR 2,003 crores in revenue with a 19.7% EBITDA margin. The India CRAMS business demonstrated significant turnaround, growing 35% in FY25 to INR 290 crores, and achieving a 17.3% EBITDA margin in Q4 FY25, a substantial improvement from 5.2% in Q4 FY24. The Cholesterol and Vitamin D analogues business recorded INR 305 crores in FY25, with Q4 revenue at INR 121 crores, and management expects margin improvement in FY26. The Quats and Generics business remained stable at INR 113 crores for FY25 with a 7% margin.

The company achieved several strategic milestones, including the full operationalization of its French facility, which now has two filling lines for high-quality compounds and high-potent API solutions, backed by a GMP certificate. The Chinese site in Shanghai also received its drug manufacturing license from the Chinese FDA, opening avenues for future GMP production in the Chinese market. A significant co-investment of over CHF 25 million with a Japanese customer in Switzerland for complex molecule capabilities and capacity expansion was highlighted, with the client covering 50% of the investment. These initiatives are expected to drive future growth and enhance capabilities.

Management emphasized strong focus on cost control, particularly in raw material procurement. Successful negotiation of lower prices for wool grease, a key raw material for the Dutch subsidiary, is expected to lead to higher profitability. The company aims to improve margins across segments, targeting 20-25% for India CRAMS and 15-20% for the Cholesterol and Vitamin D business in FY26. Overall, the company targets a 20% EBITDA margin for FY26, reflecting the benefits of these cost management strategies.

The company's net debt reduced to INR 157 million as of March 31, 2025, from INR 163 million a year prior. Management aims to reduce net debt by INR 100-200 crores (or CHF 10-20 million) annually. Finance costs are projected to decrease by 10-15% in FY26 compared to FY25. CAPEX for FY26 is guided at INR 250-300 crores, with INR 170-180 crores allocated for maintenance and the remainder for growth and digital transformation. The company is focused on generating free cash flow and ensuring CAPEX is tied to strong business cases and customer commitments.

Dishman Carbogen Amcis projects a 12-15% CAGR over the next 3-5 years, with a target EBITDA of INR 550-570 crores and an overall EBITDA margin of 20% for FY26. The French entity's revenue is expected to double in FY26, with a breakeven point at EUR 18 million. India CRAMS is anticipated to grow 15-20%, and the India assets have a peak revenue potential of INR 800 crores within 2-3 years. The company is focused on expanding its development pipeline, acquiring more projects from early to late-phase clinical cases, and leveraging synergies between its Carbogen Amcis and Indian operations to drive growth and profitability.