Cohance Lifesciences
Cohance Lifesciences
HealthcareKey Fundamentals
SmallcapPharmaceuticalsHealthcareTapetide Score
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Key Insights
Weaknesses
4- Though the company is reporting repeated profits, it is not paying out dividend
- Company has a low return on equity of 10.6% over last 3 years.
- Promoters have pledged 94.6% of their holding.
- Debtor days have increased from 88.0 to 110 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 5d agoCohance Lifesciences Ltd is a healthcare company with a market cap of ₹17,237 Cr that has delivered strong historical sales growth (5-year CAGR of 18%) but is currently experiencing a sharp downturn with TTM sales declining 20% and TTM profit declining 77%. The stock trades at an elevated PE of 293.7x, ROE has deteriorated from a 5-year average of 15% to just 5% last year, and promoters have pledged 94.6% of their holdings, signaling significant financial stress at the promoter level.
- Strong historical revenue growth with a 5-year compounded sales CAGR of 18%, indicating the business has demonstrated an ability to scale over medium-term horizons
- 3-year compounded sales CAGR of 19% suggests the company maintained solid top-line momentum through FY21-FY24 despite macro disruptions
- 5-year average ROE of 15% shows the business was historically capable of generating reasonable returns on shareholder equity before the recent downturn
- Market cap of ₹17,237 Cr reflects meaningful institutional and market recognition as a mid-to-large cap healthcare player
- Dividend yield of 1.33% provides some cash return to shareholders, though this contrasts with the noted lack of consistent dividend payout
- Price-to-book ratio of 4.4x, while not cheap, is not extreme for a healthcare company with a prior track record of double-digit sales growth
- Promoters have pledged 94.6% of their holdings, an extremely high level that creates risk of forced share sales and loss of management control if stock price falls further
- TTM profit has collapsed by 77%, pointing to severe earnings deterioration and raising questions about structural vs cyclical decline
- PE ratio of 293.7x is extremely elevated, implying the current earnings base is negligible relative to the company's market valuation
- TTM sales have declined 20%, reversing the multi-year growth trend and suggesting demand or execution headwinds in the core business
- ROE has fallen sharply from 15% (5-year average) to just 5% last year, indicating deteriorating capital efficiency and profitability
- Debtor days have increased from 88 to 110 days, suggesting worsening working capital management and potential collection difficulties with customers
- 3-year compounded profit CAGR of -23% shows that earnings erosion is not just a one-quarter blip but a sustained multi-year trend
- Stock price CAGR of -56% over the past 1 year reflects significant market repricing of the company's risk profile and growth outlook
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- USFDA Form 483 observations Sep 7
Cohance received four Form 483 observations at its formulation plant following a USFDA inspection. While not a final regulatory action, corrective responses are required and any escalation could impact US market operations.
- Weak Q1 FY27 revenue and margins Aug 31
Q1 FY27 revenue came in at ₹422.26 crore, declining 23.1% YoY, with an adjusted EBITDA margin of just 2.2% — significantly lagging peer Anthem Biosciences at 39.6%.
- $18M ADC strategy expansion Aug 31
Cohance is investing $13M to raise its NJ Bio stake to 67.3% and $5M to take 65% ownership in Aruka Bio, separating ADC operations into a CRDMO services arm and a proprietary drug development subsidiary. Transactions expected to close by end of September 2026.
- Aruka Bio becomes direct subsidiary Aug 31
Post-transaction, Aruka Bio with its proprietary ADC platform and preclinical lead programme becomes a direct Cohance subsidiary, opening co-development, licensing and partnership opportunities with pharma companies.
- Deep CRDMO pipeline Aug 31
Cohance's established platform spans over 100 early-stage programmes and 10 late-phase molecules, positioning it to offer end-to-end services from development through commercial manufacturing.
- Investor meet at Elara Dialogue Aug 27
Management participated in group and one-on-one sessions with analysts at the Ashwamedh - Elara India Dialogue 2026 in Mumbai on September 1.
- FY26 BRSR report filed Aug 26
Cohance submitted its FY26 Business Responsibility and Sustainability Report, reporting 14% renewable energy share and zero safety incidents.
- 8th AGM scheduled Sep 17 Aug 26
Virtual AGM set for September 17, 2026 covering adoption of FY26 financials and reappointment of director Shweta Jalan.
TL;DR: Cohance is making a bold strategic bet on the high-growth ADC space with $18M in investments to consolidate ownership of NJ Bio and Aruka Bio, creating distinct CRDMO and proprietary drug development units. However, the core business is under pressure with Q1 FY27 revenue down 23.1% YoY and razor-thin 2.2% EBITDA margins, while four fresh USFDA Form 483 observations add near-term regulatory risk. The ADC pivot could be transformative given the sector's 36% EBITDA growth trend, but execution on margins and a clean FDA response will be critical to rebuilding investor confidence.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 348 | 231 | 220 | 253 | 488 | 604 | 676 | 840 | 549 | 556 | 545 | 619 | 422 |
| Expenses | 181 | 133 | 154 | 180 | 363 | 398 | 439 | 611 | 437 | 435 | 449 | 520 | 421 |
| Operating Profit | 167 | 98 | 66 | 73 | 125 | 205 | 237 | 229 | 112 | 121 | 95 | 99 | 1 |
| OPM % | 48% | 42% | 30% | 29% | 26% | 34% | 35% | 27% | 20% | 22% | 18% | 16% | 0.3% |
| Other Income | 11 | 20 | 14 | 17 | 19 | 16 | 22 | -4 | 6 | 16 | 1 | -18 | 12 |
| Interest | 1 | 0 | 2 | 2 | 10 | 10 | 11 | 10 | 10 | 9 | 9 | 9 | 7 |
| Depreciation | 13 | 12 | 13 | 17 | 31 | 38 | 44 | 54 | 45 | 44 | 47 | 51 | 50 |
| PBT | 164 | 105 | 65 | 71 | 103 | 174 | 205 | 161 | 63 | 84 | 41 | 20 | -43 |
| Tax % | 26% | 25% | 29% | 25% | 27% | 21% | 25% | 27% | 26% | 21% | 29% | 58% | 5% |
| Net Profit | 121 | 80 | 47 | 53 | 75 | 138 | 153 | 117 | 46 | 66 | 29 | 8 | -45 |
| EPS in Rs | 4.74 | 3.13 | 1.84 | 2.1 | 2.96 | 5.44 | 6.01 | 4.73 | 1.28 | 1.94 | 0.96 | 0.51 | -0.63 |
Profit & Loss
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 378 | 834 | 1,010 | 1,320 | 1,340 | 1,051 | 2,608 | 2,269 | 2,142 |
| Expenses | 206 | 449 | 567 | 738 | 766 | 645 | 1,811 | 1,841 | 1,825 |
| Operating Profit | 172 | 385 | 443 | 582 | 574 | 406 | 797 | 427 | 316 |
| OPM % | 45% | 46% | 44% | 44% | 43% | 39% | 31% | 19% | 15% |
| Other Income | 1 | 66 | 68 | 133 | 46 | 62 | 53 | 4 | 11 |
| Interest | 3 | 23 | 12 | 9 | 13 | 7 | 41 | 37 | 34 |
| Depreciation | 12 | 24 | 32 | 39 | 48 | 55 | 167 | 187 | 192 |
| PBT | 158 | 405 | 468 | 668 | 560 | 406 | 643 | 207 | 101 |
| Tax % | 31% | 22% | 23% | 32% | 27% | 26% | 25% | 27% | — |
| Net Profit | 109 | 317 | 362 | 454 | 411 | 300 | 484 | 150 | 59 |
| EPS in Rs | — | 12.45 | 14.23 | 17.83 | 16.16 | 11.8 | 19.14 | 4.68 | 2.78 |
| Div. Payout % | 0% | 20% | 14% | 28% | 37% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 0 | 13 | 25 | 25 | 25 | 25 | 25 | 38 |
| Reserves | 578 | 832 | 1,155 | 1,502 | 1,710 | 2,025 | 3,623 | 3,873 |
| Borrowings | 83 | 186 | 143 | 97 | 70 | 65 | 486 | 400 |
| Other Liabilities | 123 | 142 | 151 | 205 | 160 | 138 | 1,346 | 1,415 |
| Total Liabilities | 783 | 1,173 | 1,474 | 1,830 | 1,966 | 2,254 | 5,480 | 5,727 |
| Fixed Assets | 271 | 357 | 441 | 534 | 663 | 670 | 3,107 | 3,369 |
| CWIP | 111 | 102 | 96 | 30 | 165 | 179 | 334 | 178 |
| Investments | 7 | 338 | 542 | 598 | 536 | 904 | 337 | 529 |
| Other Assets | 394 | 376 | 395 | 667 | 601 | 501 | 1,702 | 1,652 |
| Total Assets | 783 | 1,173 | 1,474 | 1,830 | 1,966 | 2,254 | 5,480 | 5,727 |
Cash Flow
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Operating | 50 | 407 | 383 | 330 | 457 | 358 | 673 | 368 |
| Investing | -65 | -413 | -311 | -136 | -195 | -362 | -388 | -251 |
| Financing | 26 | 7 | -76 | -156 | -242 | -14 | -327 | -165 |
| Net Cash Flow | 11 | 1 | -5 | 37 | 20 | -18 | -42 | -48 |
| Free Cash Flow | -6 | 304 | 272 | 255 | 171 | 307 | 357 | 169 |
| CFO/OP | 49 | 128 | 111 | 88 | 105 | 115 | 107 | 102 |
Ratios
| Particulars | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 142 | 51 | 37 | 65 | 30 | 46 | 108 | 110 |
| Inventory Days | 556 | 278 | 243 | 259 | 279 | 268 | 209 | 310 |
| Days Payable | 190 | 113 | 100 | 97 | 63 | 49 | 120 | 157 |
| Cash Conversion Cycle | 509 | 217 | 180 | 228 | 247 | 265 | 197 | 263 |
| Working Capital Days | 205 | 64 | 56 | 108 | 99 | 115 | 106 | 133 |
| ROCE % | — | 50% | 40% | 41% | 32% | 19% | 21% | 6% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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68 extracted metrics + investor summaries across FY18–FY26.
Documents
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Company Information
Cohance Lifesciences is a Hyderabad-based CDMO operating across pharmaceutical development, manufacturing, APIs, formulations and specialty chemicals. The company states that it features among the Top 20 CDMOs globally; its Pharma CDMO business works with 19 of the top 20 global innovators, while the API portfolio ranks among the top three suppliers in 8 of its top 10 molecules.[1][2]
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