Cohance Lifesciences Q2 Review — ICICI Securities Slashes Target Price By 49%; Downgrades Stock To 'Reduce'

Cohance’s Q2 FY26 performance was in line with brokerage's expectations, though the cut in FY26 guidance was disappointing. While pharma CDMO growth continues to be impacted by inventory destocking for two products, dip in sales of NJ Bio and API+ (-4% YoY) division was a surprise..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Cohance Lifesciences Ltd.’s operating performance continues to be weak with revenue growing by mere ~1.2% while Ebitda/ PAT fell 29.6%/41.7% YoY in H1 FY26. Revenue growth has been impacted due to a shipment delay in NJ Bio by two-three quarters. This coupled with inventory destocking of pharma contract development manufacturing organisation projects and pressure in API segment along with cost over runs have impacted its overall financial performance. The company is also going through a management transition with the exit of the CEO. Cohance has hired a new COO and has made changes to the management structure with Chairman Mr Vivek Sharma taking complete control. New order wins along with resumption of supplies for a couple of pharma CDMO projects is critical for a turnaround. With elevated cost structure, we believe the company may take at least five-six quarters to restore its Ebitda margin back to FY25 levels. We cut FY26/27E earnings by ~37–41% to factor in slower growth and lower margins. We now expect Cohance to register 11.3%/12.2%/7.8% revenue/Ebitda/PAT growth over FY25–28E. At current market price, the stock trades at 57.5x FY27E and 39.2x FY28E earnings. We downgrade to Reduce (earlier Buy) with DCF-based lower target price of Rs 640 (Rs 1,250 earlier). Key upside risks: Improvement in biotech funding environment, new order wins for commercial projects and M&As..Click on the attachment to read the full report:.Fujiyama Power Systems (UTL Solar) IPO GMP Remains Flat As Mainboard Offer Opens; Check Details.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cohance Lifesciences Q2 Review — ICICI Securities Slashes Target Price By 49%; Downgrades Stock To 'Reduce'

ICICI Securities downgraded Cohance from Buy to Reduce and slashes target price, citing weak outlook and margin pressure.

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