Concord Biotech Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Concord Biotech Ltd filed with BSE on 05 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Concord Biotech reported a revenue decline for Q4 FY26 and full year FY26, citing industry headwinds including US tariff-related procurement delays, CDSCO written confirmation approval issues affecting European supplies, Middle East geopolitical disruptions, and a stalled US Veterans Affairs tender. EBITDA margin for FY26 stood at around 35%, or approximately 39% excluding costs from the new injectable facility and the US subsidiary Stellon Biotech. Management said it expects growth in FY27 to be in line with or slightly better than its historical rate, supported by new customer acquisitions, CDMO opportunities, and normalization of deferred supplies.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
API revenue: INR 264 crores (Q4 FY26)
p. 5
“The API revenues for the quarter 4 financial year '26 stood at INR 264 crores and INR 829 crores for financial year '26 with a degrowth of around 27% and 12%, respectively.”
Raviraj Karia, page 5 of the filed PDF · View the filing
API revenue: INR 829 crores (FY26)
p. 5
“The API revenues for the quarter 4 financial year '26 stood at INR 264 crores and INR 829 crores for financial year '26 with a degrowth of around 27% and 12%, respectively.”
Raviraj Karia, page 5 of the filed PDF · View the filing
Revenue degrowth: -24% (Q4 FY26)
p. 5
“Revenue degrowth for quarter 4 financial year '26 stood at -24% and for the full financial year, it stood at -12%.”
Raviraj Karia, page 5 of the filed PDF · View the filing
EBITDA: INR 367 crores (FY26)
p. 5
“Our reported EBITDA for the financial year '26 stood at INR 367 crores with an EBITDA margin of around 35%.”
Raviraj Karia, page 5 of the filed PDF · View the filing
EBITDA margin excluding new facility and Stellon expenses: around 40.4% for Q4, 39% for FY26 (Q4 FY26 and FY26)
p. 5
“However, if we exclude the impact of expenses related to our new formulation facility and expenses pertaining to our U.S. subsidiary, Stellon, our EBITDA would have been in the range of around 40.4% for the quarter 4 and 39% for the financial year '26.”
Raviraj Karia, page 5 of the filed PDF · View the filing
Profit after tax: INR 260 crores, down 30% (FY26)
p. 5
“On account of de toperating leverage with reduced sales, our profit after tax was down by 30% for the financial year '26, standing at INR 260 crores.”
Raviraj Karia, page 5 of the filed PDF · View the filing
Cash and cash equivalents: more than around INR 414 crores (as on 31st March 2026)
p. 5
“We are a zero-debt company with cash and cash equivalent of more than around INR 414 crores as on 31st March 2026.”
Raviraj Karia, page 5 of the filed PDF · View the filing
Capex: INR 65 crores (FY26)
p. 5
“Our capex for the year stood at INR 65 crores, and our cash flow from operations stood at INR 267 crores with a CFO to EBITDA conversion of around 73% with the manufacturing capacities”
Raviraj Karia, page 5 of the filed PDF · View the filing
Cash flow from operations: INR 267 crores (FY26)
p. 5
“Our capex for the year stood at INR 65 crores, and our cash flow from operations stood at INR 267 crores with a CFO to EBITDA conversion of around 73% with the manufacturing capacities”
Raviraj Karia, page 5 of the filed PDF · View the filing
Middle East tender impact: INR 25 crores (FY26)
p. 7
“So the tender impact, we had already captured that in quarter 3, and we had informed that the tender was to the tune of close to around INR 25 crores.”
Ankur Vaid, page 7 of the filed PDF · View the filing
Middle East total exposure: INR 50 crores
p. 8
“So I would say it would be close to around INR 50 crores.”
Ankur Vaid, page 8 of the filed PDF · View the filing
Injectable facility expenses: INR 10 crores quarterly, INR 38-39 crores full year (FY26)
p. 8
“So for injectable plants, we have previously also mentioned that the quarter-on-quarter expenses are around INR 10 crores, while the full year number would be around INR 38 crores to INR 39 crores.”
Raviraj Karia, page 8 of the filed PDF · View the filing
US Veterans Affairs tender impact: INR 25 crores
p. 9
“So as I mentioned earlier, this was a challenge that we faced in quarter 3, and the exposure to that was to the tune of around INR 25 crores.”
Ankur Vaid, page 9 of the filed PDF · View the filing
Capacity utilization Unit 1: 77%
p. 8
“Yes. Yes. So the capacity utilization for the Unit 1 was 77%, Unit 2 was 30% and Unit 3 is around 53%.”
Raviraj Karia, page 8 of the filed PDF · View the filing
Peak revenue potential from current capacity: approximately INR 3,000 crores
p. 5
“with the manufacturing capacities across all 4 units supporting a peak revenue potential of approximately INR 3,000 crores, along with a strong cash surplus position and limited capex requirements, we are well positioned to capitalize on future growth opportunities and drive sustainable growth.”
Raviraj Karia, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — slightly better than historical ~18% growth · FY27
stated conditionally by Ankur Vaid
p. 6
“Yes. As I said that our historical growth has been around 18%. So we expect it to be slightly better off is how we are looking at this financial year.”
Ankur Vaid, page 6 of the filed PDF · View the filing
Capex — INR 20 crores to INR 30 crores · FY27
stated firmly by Ankur Vaid
p. 10
“General capex is around to the tune of INR 20 crores, INR 30 crores. And as of now, there is no particular requirements per se.”
Ankur Vaid, page 10 of the filed PDF · View the filing
EBITDA margin impact from power savings — 1% to 1.5% positive impact
stated conditionally by Ankur Vaid
p. 11
“Yes. So those savings have started and we expect around 1% to 1.5% positive impact on the EBITDA.”
Ankur Vaid, page 11 of the filed PDF · View the filing
Operating leverage from injectables and Stellon breakeven — next financial year
stated as an aspiration by Ankur Vaid
p. 13
“So full breakeven, I would say, will take time. I would say probably in the next financial year is what I would look at.”
Ankur Vaid, page 13 of the filed PDF · View the filing
Gross margin — in line with historical gross margins · FY27
stated conditionally by Ankur Vaid
p. 7
“So I don't expect it to be significantly different, but my sense would be that for a full year basis, it should be pretty much in line with what our historical gross margins have been.”
Ankur Vaid, page 7 of the filed PDF · View the filing
API to formulation mix — 80:20 plus/minus 2-3% · FY27
stated conditionally by Ankur Vaid
p. 12
“I mean, overall API to formulations, as you saw last year and last to last year and also last year, we were in and around that 80-20. So plus/minus 2%, 3% here and there is what we expect also in this year.”
Ankur Vaid, page 12 of the filed PDF · View the filing
Large capacity addition — INR 50-100 crores in 2-3 years, beyond INR 100 crores in 4-5 years · 2 to 5 years
stated as an aspiration by Ankur Vaid
p. 14
“Anything above I mean, INR 50 crores to INR 100 crores, probably 2 to 3 years could be a good estimation. But beyond INR 100 crores, I think it will be probably 4 to 5 years down the line.”
Ankur Vaid, page 14 of the filed PDF · View the filing
EBITDA margin guidance — FY27
stated as an aspiration by Ankur Vaid
p. 16
“So we have not given any guidance on the EBITDA. But what we have mentioned is that there are certain positive impacts that are there.”
Ankur Vaid, page 16 of the filed PDF · View the filing
Working capital intensity — in line with historical numbers · next 3 years
stated conditionally by Ankur Vaid
p. 18
“I would expect to be in line with our historical numbers. because majority of the business is API.”
Ankur Vaid, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said there is good visibility in H1 and expects growth slightly better than the historical ~18%, starting from Q1 and Q2.
Answered by Ankur Vaid
Asked by Ankur Kumar: Does the company have visibility into FY27 growth starting from H1, and what growth rate can be expected?
p. 6
“So we have a very good amount of visibility in the first half. And basis on that, we have been pretty confident that the coming financial year, we should expect the growth, which should be better off than our historical growth, which has been there.”
Ankur Vaid, page 6 of the filed PDF · View the filing
Management said the tender impact was around INR 25 crores, with API impact of similar magnitude but only partial.
Answered by Ankur Vaid
Asked by Dhawal Khut: What was the Middle East tender size and country exposure?
p. 7
“So major was the tender impact, which was INR 25 crores. API impact was there, again, in and around similar to what the tender value was, but it was not like fully impacted.”
Ankur Vaid, page 7 of the filed PDF · View the filing
Management confirmed no price growth and that volumes declined for the full year.
Answered by Ankur Vaid
Asked by Aniket Singh: Was FY26 API growth driven by volume or pricing?
p. 8
“So as I said that there has been no price growth for us. So all the volumes, it has been primarily on the basis of volume.”
Ankur Vaid, page 8 of the filed PDF · View the filing
Management said yes, operating leverage should kick in this year with a possible 200 bps combined improvement from power savings and reduced losses.
Answered by Ankur Vaid
Asked by Gagan Thareja: Will operating leverage from injectables and Stellon lead to margin improvement, and by how much?
p. 13
“Possibly, yes, because as I said, 1% to 1.5% should be from the power and around 0.5%, 50 bps from the rest of the business, one can look at that, yes.”
Ankur Vaid, page 13 of the filed PDF · View the filing
Management attributed it to staggered procurement by customers shifting shipments to later quarters and longer fermentation cycles from higher utilization.
Answered by Ankur Vaid
Asked by Agraj Shah: Why did inventory days rise sharply to 480 from 286?
p. 15
“So it's a mix of two things. One is that as mentioned during the call earlier that certain of our customers made it more staggered procurement approach than the bulk approach.”
Ankur Vaid, page 15 of the filed PDF · View the filing
Management said the risk is low since Middle East inventory is primarily API rather than formulation, which does not face shelf-life obsolescence in the same way.
Answered by Ankur Vaid
Asked by Sajal Kapoor: Is there risk of inventory write-offs given elevated inventory levels?
p. 17
“That's correct. From a formulation standpoint, yes.”
Ankur Vaid, page 17 of the filed PDF · View the filing
Risks flagged
CDSCO written confirmation approval delays restricted European supplies for about 3 months
p. 3
“During the year, we also faced challenges related to obtaining written confirmation approvals from CDSCO, which restricted our supplies to the European region for nearly 3 months, representing approximately one-third of the financial year.”
Ankur Vaid, page 3 of the filed PDF · View the filing
Middle East tender remaining in abeyance amid war and geopolitical uncertainty
p. 4
“A major tender in the region remains in abeyance, which adversely impacted our revenues during the year.”
Ankur Vaid, page 4 of the filed PDF · View the filing
US Veterans Affairs tender not finalized and remaining on hold
p. 4
“Lastly, in Q4, our U.S. Veterans Affairs business was impacted as the related tender had not been finalized during the year and continues to remain on hold, resulting in lower sales during the second half of the year.”
Ankur Vaid, page 4 of the filed PDF · View the filing
US tariff measures and geopolitical uncertainty slowing customer procurement
p. 3
“In FY26, procurement activities by our customers, particularly for the U.S., slowed during the first half of the year, while prospective customers refrained from altering their existing supply chains amid uncertainties surrounding U.S. tariff measures and the broader complex geopolitical environment.”
Ankur Vaid, page 3 of the filed PDF · View the filing
Higher fuel costs from LPG and furnace oil eating into power savings benefits
p. 16
“And that is eating away, of course, into the benefits that we see from the power and fuel, and that's why we've given a range of around 1% to 1.5%.”
Ankur Vaid, page 16 of the filed PDF · View the filing
Government restrictions on industrial fuel usage causing higher costs in early weeks
p. 17
“Yes, in the first few weeks, of course, it was challenging because as you will know that many of the places, the government had restricted the use of fuel to the industry or there were higher charges to be paid for the higher usage of fuel.”
Ankur Vaid, page 17 of the filed PDF · View the filing
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