Dishman Carbogen Amcis: Navigating Growth with Strategic Focus and Strong Margins in H1 FY26

Dishman Carbogen Amcis Ltd, a prominent player in the Contract Development and Manufacturing Organisation (CDMO) space, has reported a robust financial performance for the first half of fiscal year 2026 (H1 FY26), despite some quarterly fluctuations. The company achieved a consolidated revenue of 1,360.7 Crore for H1 FY26, marking a 3.6% year-on-year increase. The highlight of the period was a significant surge in profitability, with EBITDA soaring by 64.4% to 289.5 Crore, translating into an impressive EBITDA margin of 21.3% for the half-year. This strong margin performance underscores the company's strategic shift towards higher-value projects and efficient operational management.

While the second quarter (Q2 FY26) saw a consolidated revenue of 652.6 Crore, a 17.3% decline compared to Q2 FY25, management clarified that Q2 FY25 was exceptionally high due to the deferment of shipments from Q1 FY25. The core driver of the improved profitability in Q2 FY26 was the business mix, heavily weighted towards late Phase III molecules, including a significant supply to a Japanese innovator. These projects typically command higher margins due to lower material costs, which is reflected in the substantially reduced Cost of Goods Sold (COGS) for the quarter.

Segmental Performance and Strategic Initiatives

The company's revenue split for H1 FY26 shows CDMO contributing 1,120.6 Crore (82.4%) and Marketable Molecules contributing 240.1 Crore (17.6%). While CDMO revenue marginally declined by 1.1% year-on-year in H1 FY26 due to lower commercial supplies, its EBITDA margin significantly improved from 14.0% to 21.3% year-on-year, driven by higher revenue contribution from late Phase III molecules. The Marketable Molecules segment demonstrated strong growth, with revenue increasing by 33.7% year-on-year in H1 FY26, primarily fueled by increased supplies of cholesterol and Vitamin D analogues.

Dishman Carbogen Amcis is actively pursuing several strategic initiatives to bolster future growth. The French subsidiary recently secured its GMP certificate, leading to an increase in RFPs for both early and late-phase projects. In Shanghai, the company obtained a drug manufacturing license and expanded its sales force to penetrate the Chinese domestic market. Swiss operations are witnessing significant interest in high-potent compounds and Antibody Drug Conjugates (ADCs), prompting investments in increased capacities. A key development is the strategic collaboration with a Swiss company to offer a fully integrated ADC platform, which addresses a critical gap in antibody development and positions the company as a comprehensive solution provider.

Outlook and Management Confidence

Management expressed confidence in achieving its full-year FY26 guidance, projecting an 8% to 10% revenue growth and an EBITDA margin of around 20%. Looking further ahead, the company targets INR 3,000 Crore in CDMO revenue by FY27. The French facility is expected to reach EBITDA breakeven at EUR 18 million in the next financial year, and the Bavla site aims to achieve INR 800 Crore in revenue over the next three years. The net debt, excluding lease liabilities, has also seen a positive trend, declining to CHF 141 million as of September 30, 2025, from CHF 157 million as of March 31, 2025. This reduction, coupled with the formal FDA approval for the Naroda facility, highlights disciplined capital allocation and operational excellence.

The company's focus on high-margin products, strategic expansions, and integrated service offerings, particularly in the growing oncology and ADC segments, positions it for sustained long-term growth. The management's emphasis on operational efficiency, coupled with a strong pipeline and increasing customer interest, reinforces a positive outlook for Dishman Carbogen Amcis.