Syngene International’s shares slide 13% amid cautious FY26 outlook

The revenue during the period, however, grew with Syngene crossing the ₹1,000-crore mark, touching ₹1,018 crore, up by 8 per cent sequentially and 11 per cent increase on a y-o-y basis

Syngene International, the contract-manufacturing arm of Biocon stock’s has slumped 12.83 per cent to ₹653.85 on the BSE on Thursday. The company has recorded a 3 per cent year-on-year dip in quarterly profit to ₹183 crore for the March quarter. The company also flagged near-term pressures on margins, citing a fluid macroeconomic environment and the integration of recent investments.

The revenue during the period, however, grew with Syngene crossing the ₹1,000-crore mark, touching ₹1,018 crore, up 8 per cent sequentially and 11 per cent increase on a y-o-y basis.

In line with its cautious approach, the company has provided revenue growth guidance in the early teens for FY26. This follows an earlier revision in Q3, where the company lowered its expectations from high-single-digit growth to single-digit growth. Deepak Jain, Chief Financial Officer, told businessline that the company remains cautious as it enters FY26, citing ongoing “fluidity in the global macro environment.”

However, due to a one-off inventory adjustment for a key client, reported growth is likely to be in the mid-single digits. “We observed early signs of recovery in biotech funding, but the structure and trajectory of that recovery have not unfolded as we expected. This is why we revised our guidance in January,” he explained.

However, due to a one-off inventory adjustment for a key client, reported growth is expected to be in the mid-single-digits.

Transient year ahead

Jain called FY26 a “transient year” as the company integrates the US-based manufacturing assets, including the Baltimore facility, into its ecosystem. These assets, acquired last year, are still being operationalised and are yet to contribute to revenue, he said.

He explained, “We didn’t acquire a running business. We acquired assets, and there’s a gestation period before these start generating revenue. In the meantime, we have to bear the costs, which includes both operational and depreciation, which puts pressure on margins.”

He added that while this would weigh on near-term profitability, the move positions Syngene in the fastest-growing segment of the CRDMO market— large molecule manufacturing.

Despite short-term challenges, Jain highlighted that Syngene’s diversified offerings across the drug development value chain allow it to navigate sectoral volatility. “Our broad-based structure builds confidence with clients and positions us to benefit as the sector grows, particularly in India,” he added.

Published on April 24, 2025