Cohance Lifesciences Q2 Net Profit Plunges 80% to ₹15.2 Crore on Product Mix Deterioration

Cohance Lifesciences Ltd saw net profit collapse 79.5% year-on-year to ₹15.2 crore in the second quarter of FY27, battered by shrinking topline receipts and an unfavourable product slate.

Revenue from operations slumped 14.2% to ₹477 crore, down from ₹556 crore in the corresponding period last fiscal, according to regulatory filings submitted to exchanges on Friday. The operational squeeze proved severe. Earnings before interest, tax, depreciation and amortisation (EBITDA) tumbled 93.2% to ₹35.7 crore from ₹521.4 crore a year earlier, dragging the quarterly EBITDA margin down to 7.5% compared to 93.8% in Q2 FY26. Gross margin shrank 380 basis points to 70.8% as product mix imbalances eroded pricing power across core portfolios.

Yet sequential operational traction showed early signs of stabilization. Revenue climbed 12.9% quarter-on-quarter, while adjusted EBITDA reached ₹45.8 crore, delivering a 10% margin—up sharply from the 2.2% recorded in the first quarter of FY27. For the first half of FY27, revenue dropped 18.6% year-on-year to ₹898.9 crore, with adjusted EBITDA standing at ₹55.1 crore at a 6.1% margin.

Commercial Pipeline and Order Reloads

The company’s Small Molecules division locked in expanded order visibility across the third and fourth quarters, booking multiple commercial reload mandates to shore up second-half delivery schedules. Cohance secured three major programmes with global pharmaceutical accounts—encompassing two commercial contracts and one Phase III clinical programme. Two molecules advanced into full commercial supply, while two more are slated for commercial production over the next 12 to 15 months, including one asset cleared by the US Food and Drug Administration (USFDA).

Specialised units logged operational milestones. NJ Bio completed two antibody-drug conjugate good manufacturing practice campaigns—including an end-to-end development mandate—while a custom payload programme entered pilot scale-up. Concurrently, the Nucleic Acid franchise recorded rising demand for specialised nucleosides and amidites across Cohance’s production footprint.

"Q2 reflects an improving business trajectory and the broader Cohance platform beginning to come together," said Umang Vohra, Executive Chairman and Group CEO, in the earnings filing. "We expect H2 to be materially stronger than H1, with year-on-year growth in both revenue and EBITDA, supported by improving visibility across our businesses. At the same time, we remain focused on progressing our regulatory commitments and maintaining the highest standards of quality and compliance across our facilities."

Traders dumped the stock following AirNews. Shares of Cohance Lifesciences closed down 3.49%, or ₹15.70, at ₹434.00 on the BSE, as investors weighed steep annual margin erosion against management’s projected second-half turnaround.