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Concord Biotech Ltd
NSE: CONCORDBIO BSE: 543960 INE338H01029 Healthcare Pharma 🔎 Screen
NIFTY 500 Smallcap 250
₹14,280 Cr
Market Cap
47.1
P/E
13.90
PEG
17.4%
ROCE
12.6%
ROE
0.00
D/E
36.3%
OPM
-23.3%
% from 52W High
64
α RS
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📈 Price History
Ratio Health
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About

Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company and manufacturer of fermentation-based APIs across immunosuppressants and oncology.

✓ Strengths 3
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 28.2%
! Concerns 3
  • Stock is trading at 7.08 times its book value
  • The company has delivered a poor sales growth of 11.3% over past five years.
  • Company has high debtors of 159 days.
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Weak quarter — revenue down 24% YoY, PAT down 37%, as customer procurement delays, tariff uncertainty, and geopolitical disruptions hit sales; management asserts these are timing-led, not structural. quarter Investor Presentation One-Pager? Jun 2026
Revenue
326.1 Cr
Down 24% YoY (vs 429.9 Cr)
EBITDA Margin
36.4%
Down 794 bps YoY (44.3% in Q4FY25)
PAT
88.5 Cr
Down 37% YoY (vs 140.4 Cr)
Gross Profit Margin
73.7%
Up 358 bps YoY (70.1% in Q4FY25), driven by product mix
What Went Right
  • Gross margin improved 358 bps to 73.7% in Q4FY26, reflecting favorable product mix despite revenue decline.
  • Successfully completed USFDA, EU GMP, WHO-GMP, Russian GMP, and NAFDAC inspections across multiple facilities, reinforcing global compliance.
  • Commercialized injectable facility and soft gel facility, adding new revenue streams.
  • Commenced API supplies to two innovator companies and launched Fusidic acid, expanding CDMO and second-source opportunities.
  • Established Stellon Biotech Inc. in the US for direct marketing; invested in Cell & Gene Therapy platform via Cellimune Biotech.
What to Watch
  • Revenue fell 24% YoY in Q4 and 12% for FY26 due to multiple headwinds: EU supply delayed ~3 months from CDSCO written confirmation, US customers shifted to staggered procurement, global tariff uncertainty, Middle East disruptions from US-Iran conflict, and US Veterans Affairs tender not finalized.
  • EBITDA margin contracted 794 bps to 36.4% in Q4, and PAT margin dropped 552 bps to 27.1%, as fixed costs could not be fully absorbed on lower revenue.
  • FY26 EBITDA margin (34.8%) missed PY level of 42.2% by 736 bps; excluding new subsidiaries, it was 38.8% — still well below prior year.
  • Capacity utilization at new injectable and soft gel facilities remains low, reflected in drag on margins (management cited start-up costs).
  • Customer concentration remained high: top 10 customers contributed 37.6% of revenue in FY26, only a minor improvement from 37.8% in FY25.
Investor Lens
This was a weak quarter driven by external shocks — tariff uncertainty, geopolitical tensions, procurement shifts, and regulatory delays — that compressed revenue and margins sharply. While management frames these as timing-led, the lack of specific numeric guidance for FY27 is concerning. Positives include improving gross margins, regulatory approvals, and new commercial platforms (injectables, CDMO, US subsidiary). However, the market will need to see tangible order conversion tangible in H1FY27 to restore confidence. The thesis remains intact but near-term earnings visibility is poor. Watch for revenue recovery trends, EBITDA margin trajectory back towards 40%+, and progress on USVA tender resolution.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong YoY: PAT up 42% to ₹61 Cr, OPM at 33%.
Revenue
Revenue grew 27.9% YoY to ₹261.0 Cr, driven by healthy demand. However, it declined 19.9% QoQ from the March quarter, indicating some seasonality.
Profitability
Net Profit rose 41.9% YoY to ₹61.0 Cr, with EPS improving to ₹5.85 from ₹4.07. Sequentially, PAT fell 32.2% due to lower revenue, though tax rate was steady at 26%.
Margins
Operating margin expanded to 33% from 30% YoY, reflecting better cost control and product mix. OPM dipped from 38% in Mar 2026, driven by the QoQ revenue drop.
Cash Flow
No cash flow data provided in the release; hence, cash flow quality versus reported PAT could not be assessed.
Balance Sheet
Company is debt-free with D/E ratio of 0, indicating a strong balance sheet. No additional reserves or asset details were shared.
Key Risks
Sharp 19.9% QoQ revenue decline signals potential volatility. OPM contracted 500 bps sequentially. PE of 57.4 appears elevated, leaving little room for earnings misses.
Outlook
Strong YoY growth suggests sustained business momentum. However, margin and revenue trends need to stabilise sequentially to justify current valuation.
Generated by AI · Jun 2026 results · Not investment advice
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