Dishman Carbogen Amcis Ltd. Mar '28 Corporate Bonds - INE385W07083

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The rating agency for this Bond is IND-RA.

About

Dishman Carbogen Amcis Limited (DCAL) is an integrated Contract Research and Manufacturing Services (CRAMS) and marketable molecules player incorporated in 1983. The company provides drug development and commercialization services to pharmaceutical and biopharmaceutical companies across all stages of drug development. DCAL operates 23 multipurpose manufacturing facilities and 32 dedicated R&D laboratories across six countries, including India, Switzerland, France, the UK, the Netherlands, and China. The CRAMS business (which generates ~84% of 9MFY26 revenue) operates under two units: Carbogen Amcis and Dishman India, specializing in process R&D, active pharmaceutical ingredients (APIs), intermediates, and form-fill-finish injectables formulations. The Marketable Molecules (MM) segment (~16% of 9MFY26 revenue) manufactures specialty chemicals, vitamins, cholesterol/lanolin products, and generic APIs. The company focuses heavily on high-value therapy areas such as oncology, which accounts for over 50% of its revenue.;

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Diversified Business and Geographic Profile: DCAL maintains a highly diversified operating structure across two key segments—CRAMS (84% of 9MFY26 revenue) and Marketable Molecules (16%)—supported by 23 multi-purpose facilities across six countries (India, UK, Switzerland, Netherlands, China, and France) with approvals from global regulatory agencies like the US FDA, PMDA, and Swissmedic.

Resolution of Regulatory Inspections and Strong Order Book: The company successfully resolved prior regulatory issues at its Bavla (India) facility with final approvals from the US FDA, EDQM, and PMDA, supporting a solid order book of CHF 114 million for new product development and CHF 85 million for commercial projects at end-December 2025.

Long-term Customer Partnerships and Revenue Visibility: CRAMS operations benefit from strategic co-investment agreements, such as a second agreement valued at over CHF 25 million (~INR 2,385 million) with a longstanding Japanese customer to expand manufacturing capabilities in Switzerland.

Adequate Consolidated Liquidity Supported by Refinancing and Customer Advances: Consolidated liquidity remains adequate, supported by unrestricted cash and cash equivalents of INR 6,157 million (at 1HFYE26), positive net cash flow from operations, significant short-term customer advances (INR 3,818 million in FY25), and the successful six-year refinancing of a CHF 150 million foreign currency loan.

Expected Capital Infusion Plan to Lower Debt: Management plans to raise up to INR 10 billion (INR 10,000 million) via a Qualified Institutional Placement (QIP) or preferential shares—with INR 7 billion targeted in 1HFY27—which is intended to repay high-cost debt and reduce consolidated net adjusted leverage below 2.5x.

Dishman Carbogen Amcis Ltd. Mar '28

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