Biocon share price rises nearly 6% despite 52% dip in Q2 profit

Biocon reported a 52% dip in Q2 consolidated net profit at ₹41 crore, while revenue from operations grew by 2%. The stock recently hit a 52-week low of ₹318.40 on the NSE.

Biocon share price rallied 5.7 per cent to an intraday high of ₹364 on Thursday, a day after the pharma company reported its Q2 earnings. At 1:15 PM, the stock quoted 5.2 per cent higher at ₹362 with nearly 55 lakh shares traded at the counter on the NSE. Recently, on October 23 the stock hit a 52-week low of ₹318.40. The stock has gained over 14 per cent from its 52-week low. The stock, however, underperformed on a year-till-date basis, down nearly 7 per cent against a 21.3 per cent gain on the Nifty Pharma index. On a one-month time period, the stock was down 2 per cent, while the Pharma benchmark rose 5 per cent. 

Biocon Q2 earnings

 Biocon's Q2 consolidated net profit dipped 52 per cent year-on-year (YoY) to ₹41 crore in the quarter ended September 2026, compared with ₹85 crore reported in the year-ago period. In Q1FY27, the company posted a net profit of ₹141 crore. The company's revenue from operations, however, grew 2 per cent YoY to ₹4,389 crore in Q2FY27 from ₹4,296 crore in Q2FY26. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) declined by 7 per cent to ₹865 crore, and the EBITDA margin contracted by 200 percentage points to 20 per cent. The company in an exchange filing, said it secured over $100 million in new contracts and major payor wins for commercialized products across the US and witnessed strong demand for Insulin Glargine. It also secured regulatory approvals for the Yesintek autoinjector in the US and Canada during the quarter. Commenting on the Q2 results, Kiran Mazumdar-Shaw, Executive Chairperson said, "Biocon continued to achieve industry firsts in biosimilars, with our Pertuzumab becoming the first monoclonal antibody biosimilar recommended under the EMA's new tailored clinical development pathway. The operationalization of our second Insulin Glargine fill-finish line in Malaysia, with commercial supplies already underway, further reaffirms our global manufacturing excellence. Together with our continued investments in technology and innovation, these milestones reflect the progress of our strategic transformation and reinforce our confidence in Biocon's long-term growth trajectory."

Axis Securities retains 'Buy' rating on Biocon

 Analysts at Axis Securities retained a 'Buy' rating on Biocon with a target price of ₹485 per share post Q2 earnings. The brokerage reckons that Biocon's Biosimilars and Generics segment delivered healthy revenue growth of 3 per cent and 10 per cent, respectively, while the Services segment weighed. Axis Securities noted that working capital increased marginally due to higher inventory levels to support the expected scale-up in Biosimilars and Generics during H2FY27. Going forward, the management remains confident of delivering stronger revenue growth, improved cash flows, and better return ratios during the second half of FY27, backed by accelerating operational momentum. "Management expects Biosimilars growth to accelerate meaningfully during H2FY27, driven by the US launch of bAflibercept (Yesafili) and bDenosumab (Bosaya/Okelso). In the Generics business, growth in the GLP-1 portfolio is expected to be supported by the continued scale-up of generic Liraglutide across the US and other global markets, leveraging the company's established peptide and fermentation manufacturing capabilities," the brokerage said in a note. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.