Cohance Lifesciences Limited (formerly Suven Pharmaceuticals Limited), has reported a subdued first quarter of FY27, with revenue and profitability impacted by order phasing, lower CDMO contribution and operational pressures. 

 

The company, however, expects a recovery in the second half of the year, driven by secured orders, scheduled deliveries and progress across its late-stage pipeline.

 

For Q1FY27 ended June 30, 2026, Cohance reported revenue from operations of Rs. 4,223 million, down 23.1% year-on-year. Gross margins declined to 71.5% from 73.0% in Q1FY26, primarily due to product mix changes and a lower contribution from the CDMO business, which accounted for 38% of revenue during the quarter.

 

Adjusted EBITDA stood at Rs. 92 million, impacted by the lower revenue base, negative operating leverage and the consolidation of subsidiaries. The standalone business recorded revenue of Rs. 3,599 million and adjusted EBITDA of Rs. 332 million, translating into a margin of 9.2%.

 

Subsidiary Sapala contributed revenue of approximately Rs. 274 million, while NJ Bio reported revenue of Rs. 350 million along with an adjusted EBITDA loss. The company invested approximately Rs. 598 million in capital expenditure during the quarter, with consolidated net cash at around Rs. 2,512 million as of June 30, 2026.

 

Cohance Executive Chairman and Group CEO Umang Vohra said the first quarter performance was in line with earlier guidance and marked the company’s weakest period, with expectations of improvement ahead.

 

“As we had guided, Q1 has been weak on both revenue and EBITDA and would be our lowest quarter ever. The quarter has played out accordingly. From here, we expect improvement in Q2 and a return to year-on-year growth from the second half, supported by secured orders, scheduled deliveries and progress across our late-stage pipeline. 

 

"We have also acted on two immediate priorities: building one integrated nucleic-acid business with a clear path to full ownership of Sapala, and repositioning Agrochemicals towards an innovator-product-led portfolio. Underpinning these actions is the One Cohance culture bringing our scientific capabilities, teams and operating practices together around common standards of safety, quality, accountability and customer focus”.

 

The company said it has accelerated two key strategic initiatives: building an integrated nucleic-acid business with a clear roadmap towards full ownership of Sapala, and repositioning its agrochemicals business towards an innovator-product-led portfolio.

 

In Pharma CDMO, two recently commercialised molecules are scheduled for deliveries across Q2 and Q3. Cohance also secured a significant restocking order for a commercial molecule impacted by inventory destocking in FY26, providing visibility for deliveries in Q4 FY27 and FY28.

 

The company’s late-stage pipeline strengthened during the quarter, with one product advancing into a Phase III programme and expanded participation in an existing fast-track Phase III programme. The RFQ pipeline also improved, particularly across ADC payload-linker segments and oligonucleotide opportunities.

 

Cohance said execution progressed across its ADC platform, including payload, payload-linker and bioconjugation programmes. A customised payload order remains on track for Q2 delivery, while growing customer interest in MMAE and Exatecan portfolios reflects increased efforts by innovators to diversify supply chains.

 

The nucleic-acid business also recorded progress, with shipments beginning under a specialised building-block programme supporting an orphan-drug candidate. The company is aligning R&D, business development, manufacturing and commercial teams around an integrated nucleic-acid offering anchored by Sapala, while advancing GMP operationalisation and validation of priority amidites.

 

The API business continued to demonstrate resilience, supported by pricing and product mix improvements. Cohance received validation orders for additional product grades, secured two CEP approvals and filed two Korean DMFs.

 

The company said formulation performance remained softer, while remediation and operational normalisation at its Nacharam facility continued as planned.

 

In specialty chemicals, Performance Materials progressed in line with expectations, while agrochemicals followed the anticipated H2-weighted delivery cycle. An active-ingredient programme advanced into registration, and qualification campaigns with Japanese innovators moved forward.