Syngene International soars on rebounding to profit in Q2
Revenue from operations increased 13% quarter on quarter to Rs 833 crore from Rs 736 crore. However, revenue declined 9% year on year from Rs 911 crore in Q2 FY26.
EBITDA rose 51% sequentially to Rs 175 crore from Rs 116 crore, while falling 18% year on year from Rs 215 crore. The EBITDA margin improved to 20% from 15% in the previous quarter but remained below 23% a year earlier.
Operating EBITDA, excluding other income, increased 63% quarter on quarter to Rs 147 crore from Rs 91 crore. It declined 26% year on year from Rs 200 crore. The operating EBITDA margin improved to 18% from 12% in Q1 FY27, compared with 22% in Q2 FY26.
Profit before tax stood at Rs 54 crore, compared with a loss of Rs 6 crore in Q1 FY27. Year on year, it declined 37% from Rs 85 crore in Q2 FY26.
Material costs declined 17% year on year to Rs 199 crore from Rs 239 crore, while staff costs fell 9% to Rs 280 crore from Rs 307 crore. Other expenses decreased 10% to Rs 116 crore from Rs 128 crore. Net foreign exchange loss rose to Rs 61 crore from Rs 12 crore a year earlier.
Syngene said the year-on-year performance was affected primarily by lower Zoetis revenue and foreign exchange hedge losses. It added that the operating EBITDA margin would have been in the mid-20% range after adjusting for the foreign exchange hedge loss.
During the quarter, the company signed its first manufacturing agreement for its Bayview biologics facility in the US. Process development is scheduled to begin in India during the current fiscal year, with drug substance manufacturing at Bayview expected to start in the next financial year. Syngene also secured additional biologics manufacturing contracts and completed an siRNA manufacturing programme for a global pharmaceutical company.
The company strengthened its integrated drug discovery services, commissioned a Clinical Translational Sciences laboratory in Bengaluru and expanded the use of artificial intelligence and automation in research workflows. It also continued cost-optimisation initiatives, with further benefits expected over the coming quarters.
Executive chairperson Kiran Mazumdar-Shaw said the company remained focused on strengthening its position as an integrated research, development and manufacturing partner for the global life sciences industry.
Managing director and CEO Siddharth Mittal highlighted improving CDMO performance and customer engagement across development and manufacturing services.
Syngene International said chief financial officer Deepak Jain has decided to resign for personal reasons to pursue an opportunity outside the company. He will continue in his role at least until the announcement of the third-quarter financial results to ensure a smooth transition.
Syngene International is an integrated research, development and manufacturing services company serving the pharmaceutical, biotechnology, nutrition, animal health, consumer goods and specialty chemicals industries. It employs over 8,300 people, including more than 5,700 scientists, and operates specialised facilities spanning over 3 million square feet across India and the US. The company serves approximately 400 global customers, including biotechnology firms and multinational pharmaceutical companies.
Powered by Capital Market - Live News