Cohance Lifesciences Reports Q1 Loss as Revenue Declines

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

reported a weak performance for the first quarter of FY27, posting a consolidated net loss of ₹45.2 crore, compared with a net profit of ₹46.4 crore in the corresponding quarter last year. Revenue from operations declined 23.1% year-on-year to ₹422.3 crore, primarily due to lower revenues from its Pharma CDMO and specialty chemicals businesses. The company's operating performance also weakened significantly. Reported EBITDA declined to ₹2.1 crore from ₹112 crore a year earlier, while the EBITDA margin contracted sharply to 0.5% from 20.4%. On an adjusted basis, EBITDA stood at ₹9.2 crore, with an adjusted EBITDA margin of 2.2%. The decline was attributed to shipment phasing in the Pharma CDMO business, weaker agrochemical demand, and lower formulation revenues. Despite the challenging quarter, the company maintained a net cash position of around ₹251 crore and indicated that order execution is expected to improve in the coming quarters. Industry & Economic Impact: The results reflect the near-term challenges facing the pharmaceutical CDMO and specialty chemicals sectors, where order timing, customer shipment schedules, and demand fluctuations can significantly affect quarterly performance. Lower operating leverage also impacted margins during the quarter. From an economic perspective, the pharmaceutical manufacturing sector remains an important contributor to India's exports, high-value manufacturing, and employment. Continued investments in manufacturing capabilities and contract development services are expected to support long-term growth despite temporary fluctuations in quarterly earnings. Source: The Hindu No Recommendations