Cohance Life Q1 FY27 Results (NSE: COHANCE)
Signal: Slipped to loss
The read
Q1FY27 was guided as the weakest quarter; revenue fell 23% YoY and consolidated net loss of ₹24 Cr was driven by subsidiary NJ Bio losses and negative operating leverage. Gross margin held relatively well (71.5% vs 73%), but EBITDA margin collapsed to 3.2% as fixed costs (employee, D&A) did not flex. Standalone business remained modestly profitable (₹1.4 Cr PAT) but relied entirely on other income. Management expects recovery from Q2 with year-on-year growth in H2, supported by secured orders and late-stage pipeline progress.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹422.26 Cr | -23.1% | -31.8% |
| EBIT | ₹-36.13 Cr | -154.0% | |
| Net profit | ₹-24.12 Cr | -149.4% | |
| EPS | ₹-0.63 | -149.2% | |
| EBIT margin | 3.2% |
P&L walk
Consolidated revenue fell 23% YoY, operating loss at EBIT level (-₹36 Cr) and net loss of ₹24 Cr, driven by fixed cost overhead and subsidiary NJ Bio losses; EBITDA margin 3.2%.
Key positives
- Gross margin only 150bps lower YoY at 71.5%, indicating pricing control despite lower revenue.
- Net cash position of ₹2,512 Mn provides balance sheet strength.
- Management expects Q2 improvement and year-on-year growth in H2, with secured orders for commercial molecules and two recently commercialised molecules scheduled for Q2/Q3 delivery.
- Late-stage pipeline advanced with one product to Phase III and expanded participation in fast-track Phase III; strong RFQ pipeline in ADC payload-linker and Oligo.
Key concerns
- Consolidated net loss of ₹24.1 Cr vs profit of ₹48.9 Cr a year ago; losses at subsidiary level (NJ Bio) persisting.
- EBITDA margin crashed to 3.2% from 20.4% YoY, reflecting negative operating leverage and fixed cost overhang.
- Revenue continued downward trajectory for consecutive quarters (Q3FY26 -19.5%, Q4FY26 -26.3%, Q1FY27 -23.1%), with no visible bottom yet.
- Standalone PAT of ₹1.4 Cr was entirely non-operational (other income 550% of PBT), raising earnings quality concerns.
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