Cotec Healthcare Limited IPO

Out of the company's diversified product portfolio, approximately 36.79%-47.12% of its Revenue from Operations during the preceding three Fiscals was derived from the sale of tablets. Any reduction in demand for these products may adversely affect the company's business, financial condition, results of operations and cash flows.

While, the company served 154, 177 and 122 customers during the Fiscal 2025, 2024 and 2023, the company's top ten customers contributed to 67.34%, 61.64% and 70.37% of its Revenue from Operations during the said period, respectively. A decrease in the revenue derived from such customers, could have an adverse effect on the company's business, financial condition, results of operations and cash flows.

The company's CDMO agreements impose several contractual obligations upon the company. If the company is unable to meet these contractual obligations and/ or the company's customers perceive any deficiency in its offerings the company may faces legal liabilities and consequent damage to its reputation which may in-turn adversely impact the company's business, results of operations and financial condition.

The company derived about 79.37%-92.72% of our Revenue from Operations from repeat customers in the preceding three Fiscals, and any loss of or a significant reduction in the repeat customers or revenue generated from them could adversely affect its business, results of operations, financial condition and cash flows.

Majority of the company's key material purchases, being APIs, excipients and packing material, sourced from a diversified supplier base, is not under any long term purchase agreements. Any reduction of supplies or the company's discontinuation of supplies from its top suppliers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows. Any fluctuation in prices of its raw materials, may have a material adverse effect on the company's business, results of operations, prospects and financial condition.

While the company is the second-largest player in the CDMO industry in India in terms of number of dosage forms with capabilities across 24 distinct formulation types (among peers assessed by F&S) (Source: F&S Report), the company may be unable to successfully develop, obtain approvals for, and commercialise new formulations, which could adversely affect its growth prospects and competitive position.

Out of the company's Revenue from Operations from 24 states/union territories across India, about 58.97%-76.69% was attributed to the Northern region during the preceding three Fiscals. The company's Manufacturing Facility is concentrated in Roorkee, Uttarakhand, and any adverse developments affecting its operations in these regions could have an adverse impact on the company's revenue and results of operations.

The company's Manufacturing Units are subject to periodic inspections and audits by regulatory authorities and clients. The company may be subject to regulatory action leading to an adverse effect on its business, results of operations, financial condition and cash flows.

All the company's Manufacturing Units are equipped with quality control infrastructure. Despite its quality check and control processes, if there are any defects in the company's products, the company could be liable for claims against the company which may reduce demand for its products and damage to the company's reputation.

The Indian pharmaceutical market is subject to extensive regulation and the company's failures to comply with the existing and future regulatory requirements in the pharmaceutical market could adversely affect its business, results of operations and financial condition.