Syngene International drops after Q1 PAT swings to loss; revenue declines 16% YoY
Revenue from operations declined 15.9% YoY to Rs 736 crore in Q1 FY27 from Rs 875 crore in the corresponding quarter last year. Reported revenue fell 14.7% YoY to Rs 761 crore from Rs 892 crore.
The company reported a pre-tax loss of Rs 6 crore in Q1 FY27, compared with a pre-tax profit of Rs 101 crore in Q1 FY26.
EBITDA dropped 48.2% YoY to Rs 116 crore from Rs 224 crore, while EBITDA margin contracted to 15.2% from 25.1% a year ago. Operating EBITDA margin (excluding other income) narrowed to 12.3% from 23.6%.
Material costs declined 20.6% YoY to Rs 173 crore, staff costs fell 3.4% to Rs 281 crore and other expenses decreased 14.1% to Rs 110 crore. However, net foreign exchange loss increased to Rs 50 crore from Rs 5 crore in the year-ago quarter. Depreciation and finance costs rose marginally by 1% YoY to Rs 112 crore.
The company reported a tax credit of Rs 7 crore in Q1 FY27 compared with a tax expense of Rs 15 crore in Q1 FY26.
Management said the quarter was impacted by the lack of offtake from a major biologics client and forex hedge losses, partly offset by ongoing cost optimisation initiatives. The company expects revenue to decline in the first half of FY27 but anticipates business momentum to improve in the second half, resulting in a single-digit revenue decline in rupee terms for the full year and EBITDA margins in the mid-20% range.
During the quarter, Syngene signed a memorandum of understanding with BRIC-Translational Health Science and Technology Institute (THSTI) to collaborate on clinical development, translational research and bioanalytical sciences. The company also expanded its Syn.AI platform with gigascale virtual screening and AI-driven de novo drug design capabilities.
Kiran Mazumdar-Shaw assumed the role of executive chairperson, while Siddharth Mittal took charge as managing director and CEO during the quarter.
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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