COHANCE LIFESCIENCES SHARES CRASH: 11 Days of Losses & 27% Plunge! What's Driving the Bloodbath?

Healthcare/Biotech

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Updated on 13 Nov 2025, 06:30 am

Cohance Lifesciences Limited experienced a significant downturn as its shares declined as much as 10% on Thursday, November 13, marking the 11th consecutive session of losses. Over the past 11 trading days, the stock has dropped by 27%. Trading volumes were exceptionally high, with nearly 19 lakh shares changing hands, far exceeding the 20-day average of 2.5 lakh shares. The stock has fallen below all key moving averages and has been in a decline for four consecutive months.

In its September quarter results, the company reported a 52% year-on-year drop in net profit to ₹66.4 crore and an 8% fall in revenue to ₹555 crore. Cohance Lifesciences stated that the revenue decline was due to deferred shipments at its Contract Development and Manufacturing Organization (CDMO) and Finished Dosage Form (FDF) sites, alongside de-stocking of key molecules and delayed project starts at NJ Bio. The company noted that adjusted for de-stocking, revenue growth would have been 14% year-on-year.

EBITDA declined by 41% to ₹121.2 crore, with operating margins contracting to 21.8% from 34% in the same period last year.

Despite these near-term challenges, Cohance Lifesciences remains confident in achieving its revenue target of $1 billion (₹8,500 crore) by 2030, with projected mid-30s EBITDA margins. Positive developments include an innovator partner securing USFDA approval for a Phase III drug, for which Cohance supplied intermediates, and the successful execution of a large Phase II order for another global innovator. Demand in the Agrochemicals and OLED/Performance segments is reported to be strong.

However, near-term growth is being impacted by pharma destocking, project delays of 2-3 quarters at NJ Bio due to slower biotech funding, and extended Chemistry, Manufacturing, and Controls (CMC) timelines from partners. The company anticipates improved performance in the second half of FY26 compared to the first half, driven by deferred shipments, new commercial project wins, and recent audit clearances.

Impact This news has a significant negative impact on Cohance Lifesciences Limited's stock price and investor sentiment. For the broader Indian stock market, it may contribute to sector-specific concerns within healthcare/biotech if the issues indicate wider industry trends, but currently appears to be company-specific. Rating: 6/10.

Difficult Terms * **CDMO (Contract Development and Manufacturing Organization)**: A company that provides drug development and manufacturing services to pharmaceutical companies on a contract basis. * **FDF (Finished Dosage Form)**: The final form of a drug product ready for patient use, such as tablets, capsules, or injections. * **De-stocking**: The process of reducing inventory levels, often by holding back on new orders or selling existing stock. * **OLED (Organic Light-Emitting Diode)**: A display technology used in electronic devices. * **USFDA (United States Food and Drug Administration)**: The U.S. agency responsible for ensuring the safety, efficacy, and security of drugs and medical products. * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)**: A measure of a company's financial performance before accounting for interest, taxes, depreciation, and amortization. * **CMC (Chemistry, Manufacturing, and Controls)**: Refers to the comprehensive documentation and information related to the quality of a drug substance and drug product development and manufacturing processes.