Syngene slides on tepid results and toned-down forecast

Syngene International dropped 12.83% to Rs 653.85 after its lacklustre Q4 performance and a cautious FY26 outlook spooked investors.

On a consolidated basis, net profit of Syngene International declined 2.81% to Rs 183.30 crore while net sales rose 11.03% to Rs 1018 crore in Q4 March 2025 over Q4 March 2024. Reported EBITDA rose 9% year-on-year to Rs 363 crore in Q4 March 2025. EBITDA margin (%) stood at 35% in Q4FY25, lower than 35.7% in Q4FY24.

For the full year, net profit declined 2.71% to Rs 496.20 crore while net sales rose 4.41% to Rs 3642.40 crore in the year ended March 2025 over the year ended March 2024. Reported EBITDA rose 1% year-on-year to Rs 1,114 crore in FY25. EBITDA margin (%) stood at 30% in FY25, lower than 30.9% in FY24.

In its outlook for FY26, the Syngene management anticipates the reported revenue growth will likely be in the mid-single digits. They also foresee the EBITDA margin moderating from current levels to the mid-twenties and a year-on-year decline in profit after tax.

Commenting on the results, Peter Bains, managing director and CEO, Syngene International, said, "Looking at the year ahead, while the wider global market dynamics remain uncertain, we expect the business momentum to continue with pipeline build in both small and large molecules, supported by new pilot programs and conversion of existing pilots in discovery services. On an underlying basis for fiscal year 2026, we expect revenue growth in the early teens reflecting a broad-based growth across research, development and manufacturing services. Adjusted for inventory balancing in large molecule commercial manufacturing at client level, the reported revenue growth is likely to be at mid-single digit."

Deepak Jain, chief financial officer, Syngene International, said, "Looking ahead into the next financial year, we expect the momentum to continue, with reported revenue growth at the mid-single digit level. As we bring the new biologics manufacturing facilities into operations, the additional operating costs and depreciation will impact margins. With this, we expect EBITDA margin to moderate from current levels to the mid-twenties and year-on-year decline in profit after tax."

The company's board recommended a final dividend of Re 1.25 per equity share for the financial year 2024-25.

Syngene International is an integrated research, development, and manufacturing services company serving the global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors.

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