Syngene Q2 profit drops 37% as biologics correction offsets growth

Revenue up 2% YoY to Rs 926 crore as research services offset biologics inventory correction; company maintains FY26 guidance

Biocon arm Syngene International reported a 36.75 per cent year-on-year (Y-o-Y) decline in consolidated net profit to Rs 67.1 crore for the second quarter of financial year 2026 (Q2 FY26), ended September 30. Net revenue rose 2.03 per cent to Rs 926 crore against Rs 907.5 crore in Q2 FY25.

 

The company’s revenue from operations increased 2.19 per cent Y-o-Y to Rs 910.6 crore. Its Q2 performance was supported by robust research services revenue, which helped offset the impact of an anticipated inventory correction in the biologics segment, the company said in its BSE filing.

 

EBITDA down 18%; margin at 23.2%

 

 

Syngene’s reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 215 crore, an 18 per cent decline from the same period last year. The EBITDA margin was 23.2 per cent.

 

Research services offset biologics correction: CEO

 

“Our Q2 performance was driven by underlying revenue growth from research services, which compensated for the anticipated inventory correction in biologics manufacturing. We are maintaining our annual revenue guidance for FY26,” said Peter Bains, managing director and chief executive officer, Syngene International.

 

Company investing in new biologics capabilities

 

“In line with our plans to strengthen our capabilities in new modalities, we are building a new GMP bioconjugation suite in the biologics facility in Bengaluru. This will enable end-to-end manufacturing of Antibody Drug Conjugates (ADCs), placing us among a select group of CRDMOs with full-service ADC capabilities,” Bains added.

 

He also noted that the US biotech funding environment is showing early signs of improvement, and Syngene will continue to monitor trends closely while maintaining agile strategies as the funding landscape evolves.

 

Focus on peptides, ADCs to drive growth

 

Deepak Jain, chief financial officer of Syngene International, said the company is investing in dedicated facilities for peptides and ADCs to expand its platform in new biologics modalities. 

“We are maintaining our EBITDA and PAT margin guidance for the full year,” Jain added.