Shares of Cohance Lifesciences tumbled 6.91% to Rs 450 in Wednesday’s trading session after the company reported a sharp deterioration in its March-quarter earnings, prompting global brokerage Jefferies to downgrade the stock from “Hold” to “Underperform.” However, Goldman Sachs retained its “Buy” rating on the company.
The pharma and specialty chemicals player posted a steep 84% year-on-year drop in Q4FY26 net profit at Rs 20 crore, compared with Rs 120.4 crore in the same quarter last year. Revenue from operations also fell sharply by 26.3% YoY to Rs 619.1 crore against Rs 840.4 crore a year ago. For the full FY26, revenue stood at Rs 2,269 crore.
The disappointing earnings, coupled with concerns around management instability and weak near-term visibility, pushed investors to the sidelines.
Jefferies turns bearish, sees more pain ahead
Global brokerage Jefferies downgraded Cohance Lifesciences from “Hold” to “Underperform” and slashed its target price to Rs 300, implying further downside from current levels.
According to Jefferies, the company’s March-quarter performance came in significantly below expectations, with weakness visible across all business segments. The sharpest decline was seen in the specialty chemicals business.
The brokerage also flagged continued leadership churn as a key concern, noting that Umang Vohra became the company’s third chief executive in just the last 12 months.
Jefferies believes the near-term outlook remains challenging, with meaningful growth recovery expected only in the second half of FY27 despite a softer base in FY26. The brokerage cut its FY27 and FY28 EPS estimates by 14–17%, citing margin pressure from higher operating costs, geopolitical tensions in the Middle East, and investments aimed at reviving growth.
The firm further highlighted that Cohance’s FY27 earnings estimates have already been cut by nearly 63% since August 2025, underscoring persistent earnings downgrades and weak visibility.
Goldman Sachs stays bullish despite weak quarter
In contrast, Goldman Sachs maintained its “Buy” rating on Cohance Lifesciences and raised its target price to Rs 525 from Rs 475 earlier.
Goldman noted that Q4 revenue came in ahead of estimates, supported by stronger traction in the CDMO development business. However, EBITDA margin at 16% missed estimates by nearly 400 basis points.
The brokerage acknowledged management commentary that FY27 recovery would be “back-end loaded,” with Q1FY27 likely to remain weak before improvement becomes visible in the second half of the fiscal year.
While Goldman Sachs trimmed its FY27–FY29 EBITDA estimates by up to 8%, it said management remains confident about long-term opportunities in high-growth segments such as ADCs, oligonucleotides, and complex chemistries.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
