Cohance Lifesciences Q2 FY27 Revenue Falls 14.2% to Rs 476.7 Crore

Cohance Lifesciences Limited reported Q2 FY27 revenue of Rs 476.7 crore, a 14.2% year-on-year decline, while revenue increased 12.9% sequentially and adjusted EBITDA margin improved to 10% from 2% in Q1 FY27. The figures show a quarterly recovery, although weaker Pharma CDMO and AgChem contributions continued to weigh on annual comparison.

How did Cohance Lifesciences perform in Q2 FY27?

Cohance Lifesciences Limited reported a sequential improvement in its second-quarter operating performance, but its revenue and profitability remained below the corresponding period of the prior year. The company disclosed the figures in its revised investor presentation for Q2 and H1 FY27, filed with stock exchanges on 7 November 2026.

Revenue for Q2 FY27 stood at Rs 476.7 crore, compared with the level achieved in Q2 FY26, resulting in a 14.2% year-on-year decline. On a quarter-on-quarter basis, revenue rose 12.9%, which the company described as a sequential recovery gaining traction.

Adjusted EBITDA was Rs 45.8 crore during the quarter, translating into a 10% margin. The presentation separately cited an EBITDA margin of 9.6%, while noting that adjusted EBITDA margin improved from 2% in Q1 FY27. These disclosures indicate that operating profitability improved materially from the immediately preceding quarter.

The company said its revised presentation updated certain items from the investor presentation submitted on 6 November 2026. The stated purpose of the revision was to make corrections and alignments for consistency and clarity.

Why did Cohance revenue decline from a year earlier?

Cohance attributed the year-on-year revenue decline mainly to lower contributions from its Pharma CDMO and AgChem businesses, along with an unfavourable business and product mix. The company did not provide a segment-wise revenue breakdown in the information available.

The company also reported that gross margin fell 378 basis points year-on-year to 70.8%. It linked the contraction to the unfavourable mix, lower AgChem contribution, weaker small-molecule revenue conversion and API-plus raw-material inflation.

Some of these pressures were partly offset by Sapala and the formulations business, according to the presentation. Sapala Organics Private Limited is identified in the company's directors' report as an Indian subsidiary.

For investors, the contrast between the annual decline and the sequential increase is relevant. The second-quarter numbers show that revenue improved from Q1 FY27, but they do not remove the factors that caused performance to trail the previous year's comparable quarter.

What supported the sequential recovery in Q2 FY27?

Cohance said its integrated capabilities were strengthening its growth platform, while the quarter recorded a clear improvement in revenue and margin from Q1 FY27. Revenue rose 12.9% sequentially and adjusted EBITDA margin moved to 10% from 2% in the preceding quarter.

The presentation highlighted continued expansion of the India-based antibody-drug conjugate, or ADC, business. Its stated capability expansion covers customised payloads, linkers and highly potent intermediates. This information describes the company's operating focus but does not include a revenue contribution or order figure for the ADC platform.

The improvement in profitability is notable because the company still reported pressure from raw-material costs and product mix during the quarter. Higher revenue conversion and a better quarterly operating outcome supported the recovery, although gross margin remained lower than the year-earlier level.

Cohance is listed on the BSE under scrip code 543064 and trades on the NSE under the symbol COHANCE. The disclosures also identify the company as formerly known as Suven Pharmaceuticals Limited.

What is the status of the USFDA matter at Cohance?

Cohance has disclosed the completion of a USFDA inspection, while a January 2026 FDA warning letter had identified significant CGMP violations at its Nacharam finished-drug-product facility. The available exchange announcement dated 5 September 2026 states that the company informed the exchange about completion of a USFDA inspection, without providing inspection observations or a final regulatory outcome.

The FDA warning letter, dated 30 January 2026, related to an inspection conducted from 4 August to 12 August 2025 at the facility with FEI number 3008768274 in Nacharam, Telangana. The letter stated that the facility's methods, facilities or controls did not conform to current good manufacturing practice requirements for finished pharmaceuticals.

The FDA acknowledged the company's commitment to temporarily suspend manufacturing and release of drug products from the facility from 16 August 2025. The source material does not state whether the suspension was lifted, whether a warning letter closeout was issued, or what conclusions resulted from the later inspection.

Regulatory matters are important for pharmaceutical companies because manufacturing-site compliance can affect production, customer supply and qualification processes. However, the available disclosures do not quantify any Q2 FY27 financial impact from the Nacharam site matter.

How do the disclosures affect investors and operations?

The disclosures present two operating signals for investors: Q2 FY27 brought a quarter-on-quarter recovery, while the annual comparison remained weak due to lower Pharma CDMO and AgChem contributions. The improvement in adjusted EBITDA margin from 2% in Q1 FY27 to 10% in Q2 FY27 is the clearest measure of the sequential change.

At the same time, the 378-basis-point decline in gross margin to 70.8% shows that product mix and input-cost issues continued to affect profitability compared with the prior year. The company identified API-plus raw-material inflation and weaker small-molecule revenue conversion among the relevant factors.

The status of the USFDA-related matter remains a separate consideration. Cohance has reported completion of an inspection, but the cited materials do not disclose the inspection classification, observations, remediation closure or a timeline for any operational change at the Nacharam facility.

No transaction size, buyer, seller, quantity or price has been provided in the supplied material regarding the reference to a block-deal session. Separately, the disclosures mention shareholding-related filings under SEBI SAST regulations, including filings involving DSP Trustee Pvt Ltd and promoter encumbrance disclosures involving Jusmiral Holdings Ltd and others.

Conclusion

Cohance's Q2 FY27 results show a sequential operating recovery, with revenue rising 12.9% from Q1 and adjusted EBITDA margin improving to 10%. Yet revenue of Rs 476.7 crore was 14.2% below the year-earlier quarter, and gross margin declined to 70.8%, reflecting continued pressure from mix, AgChem contribution, small-molecule conversion and input costs.

Investors will watch whether Pharma CDMO and AgChem contributions improve, whether gross-margin pressures ease, and whether the company provides a more detailed update on the completed USFDA inspection and the Nacharam facility's regulatory position. The available disclosures do not state a target date or final outcome for that matter.