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Concord Biotech Ltd
NSE: CONCORDBIO BSE: 543960 INE338H01029 Healthcare Pharma 🔎 Screen
NIFTY 500 Smallcap 250
₹13,455 Cr
Market Cap
51.9
P/E
15.32
PEG
18.5%
ROCE
13.9%
ROE
0.00
D/E
35.5%
OPM
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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
  • The company has delivered a poor sales growth of 11.3% over past five years.
  • Company has high debtors of 159 days.
  • Working capital days have increased from 243 days to 370 days
Key Ratios Snapshot
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Weak quarter: revenue and profitability declined sharply due to multiple headwinds including EU supply delays, US procurement shift, geopolitical tensions, and tariff uncertainty. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹326.1 Cr
-24% YoY (Q4FY25: 429.9)
EBITDA Margin
36.4%
-794 bps YoY (Q4FY25: 44.3%)
PAT
₹88.5 Cr
-37% YoY (Q4FY25: 140.4)
Export Revenue
₹157.4 Cr
-17% YoY (Q4FY25: 190.5)
What Went Right
  • Completed multiple global regulatory inspections – USFDA, EU GMP, Russian GMP, NAFDAC, WHO-GMP across facilities, reinforcing compliance.
  • Injectables facility commercialized; WHO-GMP certification enables entry into domestic and contract opportunities.
  • Commenced API supplies to two innovator companies; commercialized Fusidic acid with limited competition from European manufacturers.
  • Stellon Biotech (US subsidiary) obtained all requisite licenses; sales expected in H1 FY27.
  • Gross profit margin improved 358 bps YoY to 73.7% (Q4FY26) and full-year gross margin rose 217 bps to 76.7%.
What to Watch
  • Revenue declined 24% YoY to ₹326.1 Cr, driven by delays in EU written confirmation (3-month gap), US procurement shift to staggered buying, and Middle East geopolitical tensions.
  • EBITDA margin contracted 794 bps to 36.4% as employee costs (₹47.8 Cr, +23% YoY) and other expenses (₹74 Cr, +3% YoY) outpaced revenue.
  • PAT fell 37% YoY to ₹88.5 Cr; full-year PAT down 30% to ₹259.2 Cr.
  • Export revenue dropped 17% YoY to ₹157.4 Cr, impacted by US Veterans Affairs tender not finalised during the year and US-Iran conflict affecting Middle East supplies.
  • Formulation revenue declined 8% YoY to ₹62.3 Cr; API revenue fell 27% to ₹263.8 Cr despite new product launches.
Investor Lens
This was a weak quarter with most metrics deteriorating significantly. Management attributes the miss to timing and transition issues, not structural problems, pointing to current order enquiries and strong customer pipeline for FY27 outperformance. Positives include gross margin improvement, regulatory clearances, and new growth platforms (injectables, CDMO, US subsidiary). However, the drag from recent investments (Stellon, Cellimune, formulation facility) is evident in EBITDA margins (36.4% reported vs 40.4% excluding subsidiaries). Investors should watch for concrete revenue recovery in Q1FY27, resolution of the EU written confirmation delay, and whether the US procurement pattern normalizes. The company's thesis remains intact if these headwinds prove transient; failure to deliver double-digit revenue growth in FY27 would call that into question.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue down 24% YoY but QoQ rebound; margins compress.
Revenue
Revenue fell 24.2% YoY to ₹326 Cr, but recovered 17.3% sequentially from Dec 2025's ₹278 Cr. The steep YoY decline signals weak demand or pricing pressure, while the QoQ uptick offers near-term relief.
Profitability
Net profit dropped 36.6% YoY to ₹90 Cr, though it grew 32.4% QoQ. EPS fell from ₹13.57 to ₹8.60, reflecting lower earnings. Other income of ₹16 Cr and zero interest helped cushion the decline.
Margins
Operating margin contracted to 38% from 44% a year ago, indicating cost pressures or lower pricing. Sequentially, OPM improved slightly from 37% in Dec 2025, but remains below the year-ago level.
Cash Flow
Balance Sheet
The company is virtually debt-free (borrowings ₹1 Cr) with strong reserves of ₹2,009 Cr against total assets of ₹2,237 Cr. This provides a solid financial buffer and low leverage risk.
Key Risks
Sustained revenue decline of 24% YoY raises concerns about demand or market share loss. Margin compression from 44% to 38% YTD indicates potential pricing or cost headwinds. Reliance on QoQ recovery may not be sustainable.
Outlook
Continued QoQ improvement will be crucial to reverse the YoY downtrend. Investors should monitor revenue stabilization and margin recovery, especially given the high PE of 41.4x on depressed earnings.
Generated by AI · Mar 2026 results · Not investment advice
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