Cohance Life Q2 FY27 Results (NSE: COHANCE)
Signal: Revenue declined
The read
The key inflection is sequential rather than structural: consolidated revenue rose 12.9% QoQ and derived EBITDA rose to ₹47.79 Cr from ₹13.41 Cr, but revenue remained down 14.2% YoY, gross margin compressed 380bps to 70.8%, EBITDA margin was still 14.6pp below last year, and non-controlling-interest losses reduced group PAT to ₹2.27 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹476.65 Cr | -14.2% | +12.9% |
| EBIT | ₹-2.38 Cr | -102.6% | |
| Net profit | ₹2.27 Cr | -96.6% | |
| EPS | ₹0.4 | -79.4% | |
| EBIT margin | 10.0% |
P&L walk
Consolidated revenue recovered to ₹476.65 Cr, +12.9% QoQ but -14.2% YoY; gross margin compressed to 70.8% from 74.6% YoY as raw material cost rose to 49.7% of revenue from 34.5%, while EBITDA margin improved sequentially to 10.0% but remained sharply below 24.6% last year.
Segments
The filing reports one operating segment, CDMO; the material divergence is between standalone PAT of ₹13.27 Cr and consolidated PAT of ₹2.27 Cr, with ₹12.95 Cr of consolidated loss attributable to non-controlling interests dragging group earnings.
Key positives
- Consolidated revenue recovered 12.9% QoQ to ₹476.65 Cr from ₹422.26 Cr, and derived EBITDA improved to ₹47.79 Cr from ₹13.41 Cr QoQ.
- Standalone PAT improved to ₹13.27 Cr from ₹1.41 Cr QoQ, supported by a negative net tax expense of ₹13.53 Cr.
- Operating cash flow remained positive at ₹188.06 Cr in H1FY27 despite declining 28.0% YoY.
Key concerns
- Revenue remained down 14.2% YoY at ₹476.65 Cr and H1FY27 revenue fell 18.6% YoY to ₹898.91 Cr.
- Gross margin compressed 380bps YoY to 70.8% as raw material cost rose to 49.7% of revenue from 34.5%; the filing does not disclose the driver.
- Derived EBITDA margin was 10.0%, down 1460bps YoY from 24.6%, while employee plus other expenses increased 3.0% YoY despite lower revenue.
- Consolidated PAT of ₹2.27 Cr was dragged by ₹12.95 Cr of loss attributable to non-controlling interests, despite standalone PAT of ₹13.27 Cr.
- Inventory increased to ₹734.34 Cr from ₹562.23 Cr at March 2026, while H1 operating cash flow fell to ₹188.06 Cr from ₹261.14 Cr.
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