Syngene International Q3 net profit plunges 89%, revenue slips 3%

Librela inventory correction and one-time labour code costs weigh on earnings

Syngene International’s profits declined 89 per cent year on year to Rs 15 crore on a consolidated basis for the third quarter of the financial year 2026 (Q3 FY26). Revenue from operations also fell 3 per cent to Rs 917 crore.

 

Both profits and revenue declined due to the ongoing inventory correction for the drug Librela (bedinvetmab), a first-in-class monoclonal antibody used to treat osteoarthritis in dogs.

 

The company also incurred a one-time exceptional expense following the new labour codes, which consolidate 29 existing labour laws and revise wage definitions. It reported additional gratuity costs of Rs 65.8 crore on a standalone basis and Rs 70.6 crore on a consolidated basis.

 

On a quarter-on-quarter basis, profit declined 77 per cent, while revenue from operations fell marginally by 0.7 per cent.

 

Peter Bains, managing director and chief executive officer, Syngene International, said: “Our Q3 performance reflects the ongoing impact related to a single product from one of our large-molecule biologics clients. Outside of this factor, the underlying business has shown steady progress, with Research Services securing new programmes and delivering continued growth.”

 

Deepak Jain, chief financial officer, Syngene International, said: “Despite the ongoing impact of a single customer, revenue has been flat quarter on quarter, reflecting the underlying positive trend of the business. Our strong balance sheet provides financial flexibility for continued investments in enhancing our capabilities and capacities to better serve our clients.”

 

The company said the highlight of the quarter was the extension of its collaboration with Bristol Myers Squibb through to 2035, giving both partners a strategic 10-year horizon to further develop and expand the long-standing and unique partnership.

 

The results were announced after market hours. Syngene’s shares fell 1.4 per cent on Thursday, ending the day’s trade at Rs 592.15 apiece on the BSE.