Suven Pharma's merger (all stock deal) with Cohance Lifesciences was effective from May 01, 2025 post which on May 19, 2025 the company was renamed to Cohance Lifesciences. The Q4 and FY25 proforma revenue includes revenue of Suven, Cohance, Sapala (67.5% stake acquired on 12th July 2024) and NJ Bio (56% stake acquired on 20th Dec 2024).
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ICICI Securities Report
Cohance Lifesciences Ltd.'s Q4 FY25 pro forma financial performance was below our expectation. Momentum across its pharma CDMO (+31% YoY) was strong, while specialty chemical CDMO business growth (+75%) is beginning to recover.
Pharma CDMO business could benefit from the commercialisation of one new molecule (supplying four intermediates), while a recovery in specialty chemical segment may continue in FY26.
Management has guided for double-digit revenue growth driven by traction in all the three verticals. However, change in business mix may restrict Ebitda margin between 30-32% in FY26 (adjusted margin in Q4 FY25 at 31.3%) and a recovery could flow in thereafter. Maintain Buy with a DCF-based revised target price of Rs 1,365.
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