Stock Crash: Pharma stock extends losses after Q2 results; down 27% in 11 sessions

Shares of Cohance Lifesciences Ltd. declined as much as 10% on Thursday, November 13, marking the 11th straight session of losses for the stock.

The counter has gained in only four of the last 20 sessions and has now dropped 27% in the past 11 trading days.

Trading volumes spiked, with nearly 19 lakh shares changing hands, which is well above the 20-day average of 2.5 lakh shares. The stock has fallen below all key moving averages and has now declined for four consecutive months.

In its September quarter results, net profit dropped 52% year-on-year to ₹66.4 crore, while revenue fell 8% to ₹555 crore.

The company attributed the revenue decline to deferred shipments at CDMO and FDF sites, as well as de-stocking of key molecules and delayed project starts at NJ Bio. Adjusted for de-stocking, revenue growth would have been 14% year-on-year, it said.

EBITDA declined 41% to ₹121.2 crore, with margins contracting to 21.8% from 34% a year ago.

Cohance remains confident of achieving its $1 billion or ₹8,500 crore revenue target by 2030, with mid-30s EBITDA margins.

The company recently saw an innovator partner, supplied with four intermediates for a Phase III drug, secure USFDA approval for that drug.

It also reported successful execution of a large Phase II order for a leading global innovator, with talks underway for long-term partnerships.

Demand remains strong across Agrochemicals and OLED/Performance segments, reflecting a gradual macro recovery.

However, near-term growth has been weighed down by pharma destocking, project delays of 2-3 quarters at NJ Bio due to slower biotech funding, and extended CMC timelines from partners.

The company expects performance in the second half of FY26 to improve over the first half, aided by deferred shipments, new commercial project wins, and recent audit clearances.

With inputs from Hormaz Fatakia