Summary
Dishman Carbogen Amcis Limited - Q3 FY26 Earnings Call Summary Wednesday, February 4, 2026, 15:00 HRS
Event Participants
Executives 3 Harshil Dalal (Global CFO), Paolo Armanino (COO), Stephan Fritschi (CEO - Carbogen Amcis)
Analysts 6 Ankit Gupta, Gunit Singh, Harshit R, Ramanuj Chandak, Smit Shah, Yash Tanna
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹720 crores | +5.5% YoY; ₹20 cr shortfall due to shipment delays and European holidays. |
| Reported EBITDA | ₹113 crores | 15.7% margin; impacted by higher commercial mix and employee severance packages. |
| 9M FY26 Revenue | ₹2,080 crores | +4.3% YoY; growth expected to accelerate in Q4 FY26. |
| 9M FY26 EBITDA | ₹403 crores | 19.4% margin; +27.3% YoY growth driven by high-margin development revenue. |
| Finance Cost (Q3) | ₹45.7 crores | Includes ₹11 cr one-time refinancing expense for new Swiss credit facilities. |
| PAT (Q3) | (₹12.97 crores) | Negative due to non-recurring employee costs and one-time finance charges. |
| Net Debt | CHF 150 million | Net debt primarily Swiss-denominated; India-specific debt stands at ₹750 cr. |
| Effective Interest Cost | 3.0% - 3.5% | Reflects Swiss SARON rates at 0%; India debt remains costlier at ~10-11%. |
Geographic & Segment Commentary
- CDMO (Contract Development and Manufacturing): Reported Q3 revenue of ₹630 crores (+6.7% YoY) with 17% EBITDA margins. Performance was driven by steady development work in Switzerland, though margins were lower than 9M averages (19.7%) due to a higher proportion of non-late phase III molecules.
- Marketable Molecules: Revenue stood at ₹90 crores for Q3, led by strong Vitamin D analogues and cholesterol sales. 9M margins improved significantly to 17.5% (+920 bps YoY) as the company focused on higher-margin specialty products.
- India Operations (Bavla/Naroda): Current revenue run rate is ~₹150 crores for 9M FY26, with a target of ₹250 crores by year-end. Management is aggressively bidding via ₹1,200 crores in active RFPs to fill underutilized capacity (currently 20-25%).
- France Subsidiary (Drug Product): Generated €7 million revenue in 9M FY26; FY27 revenue is targeted at €18 million to reach EBITDA breakeven. The site recently cleared ANSM approval, leading to a surge in fill-finish inquiries for injectable products.
Company-Specific & Strategic Commentary
- ADC Partnership & Expansion: Current ADC supply to a Japanese blockbuster drug reached CHF 30 million this year; a second CHF 25 million co-investment is on track to add CHF 30 million in incremental annual revenue within 1.5 years.
- SPRINT Initiative: Launched a new branding strategy for early-phase projects (Smart, Proactive, Regulatory, Innovative, No-compromise, Trusted) to capture the beginning of the value chain.
- Strategic Integration: Consolidated the global sales team under a single Chief Business Officer to bridge Swiss development with Indian large-scale manufacturing.
- Celonic Collaboration: Established an end-to-end ADC solution (Antibody + Linker/Payload + Conjugation) to compete for small biotech projects that require simplified supply chains.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 EBITDA Margin | 19.5% - 20.0% | Based on higher development revenue mix for the full year. |
| India Revenue Target | ₹500 crores | To be achieved in 12-18 months by converting current active RFPs. |
| Long-term Margin | 25.0% - 26.0% | Target to return to pre-2020 levels within 24 months through India ramp-up. |
| India Debt | Zero | Planned payout over the next 3 years using internal accruals. |
Risks & Constraints
| Risk | Context |
|---|---|
| Operating Leverage | Current India utilization is only 20-25%, causing significant margin pressure when volumes fluctuate. |
| Concentration Risk | ADC revenues are heavily tied to a single Japanese customer’s blockbuster indications and forecast accuracy. |
| Geopolitical Factors | While benefiting from “China+1” trends, the Biosecure Act and global trade regimes create a complex landscape for large pharma sourcing. |
Q&A Highlights
India Ramp-up & RFP Conversion
- Question: What is the visibility on the ₹1,200 crores worth of RFPs submitted for India? (Yash Tanna)
- Answer: Management expects a 30-35% conversion rate; while major revenue impact will be in FY28, some commercial-direct orders could contribute in late FY27 (Harshil Dalal, Paolo Armanino).
ADC Value Chain
- Question: Why is the revenue share so low compared to the end-customer’s $4 billion sales? (Yash Tanna)
- Answer: The linker-payload component accounts for ~1.5% of the final product price. DCAL currently shares this supply 60/40 with another Swiss CDMO (Harshil Dalal).
Financial Volatility
- Question: Why does the company struggle with quarterly linearity from red to green? (Vivian Joshi)
- Answer: B2B business timing, European holiday shutdowns, and the specific mix of development vs. commercial batches in any given 90-day window cause non-linearity (Harshil Dalal).
Key Takeaway
Dishman Carbogen Amcis delivered a mixed Q3 FY26, where a 5.5% revenue growth was offset by a net loss of ₹12.97 crores due to non-recurring severance costs and one-time financing charges. Strategically, the company is pivoting toward a “one-stop-shop” model, integrating its high-end Swiss development capabilities with its large-scale Indian manufacturing assets, which currently sit underutilized at 20-25%. Management highlighted a robust ₹1,200 crore RFP pipeline for India and a successful second round of ADC co-investment with a Japanese partner, which is expected to drive revenues from CHF 30 million to CHF 40 million next year. While near-term performance remains volatile due to shipment timings and product mix, the company maintains its 19.5-20% FY26 EBITDA margin guidance. The primary focus remains on scaling the India business to ₹500 crores in 12-18 months and utilizing free cash flows to eliminate the ₹750 crore high-cost domestic debt.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: