Biologics headwind weighs on quarterly margins

Syngene International Limited reported its financial results for the third quarter of FY26, with nine-month revenue from operations rising 3 per cent year-on-year to Rs 2,702 crore, underscoring the resilience of its diversified research and development services business despite short-term pressure from a single biologics program.

For the third quarter, revenue from operations stood at Rs 917 crore, down 3 per cent year-on-year, reflecting the continued impact of a large-molecule biologics client-specific issue. Reported EBITDA declined to Rs 225 crore, with margins compressing to 24 per cent, while reported profit after tax (before exceptional items) stood at Rs 73 crore. Excluding this isolated factor, management highlighted steady underlying demand, particularly within Research Services.

Over the nine-month period, reported revenue increased 3 per cent to Rs 2,751 crore, while EBITDA declined 12 per cent to Rs 664 crore, with margins at 24 per cent. Profitability was impacted by operating leverage and mix, with reported PAT (before exceptional items) at Rs 227 crore.

“Our Q3 performance reflects the ongoing impact related to a single product from one of our large-molecule biologics clients,” said Peter Bains, Managing Director and CEO, Syngene International Limited. “Outside of this factor, the underlying business has shown steady progress, with Research Services securing new programs. A major highlight was the extension of our collaboration with Bristol Myers Squibb through to 2035, providing a clear ten-year strategic horizon to expand this long-standing partnership.”

Deepak Jain, Chief Financial Officer, added, “Despite the ongoing impact of a single customer, revenue remained flat quarter-on-quarter, reflecting the underlying positive momentum of the business. Our strong balance sheet continues to provide financial flexibility to invest in new capabilities and capacity expansion.”

Strategic and Operational Highlights

Bristol Myers Squibb (BMS) extended its integrated strategic partnership with Syngene through 2035, expanding collaboration across discovery, translational sciences, pharmaceutical development, manufacturing, and clinical trials.

Commissioning of a new commercial-scale liquid-filled hard gelatin capsule facility, strengthening Syngene’s oral solid dosage platform and enabling complex drug development.

Expansion of advanced chemistry capabilities in Hyderabad, including catalytic screening and flow chemistry labs to accelerate synthesis, improve safety, and enhance scalability.

Awarded the 5S Certification by JUSE and QCFI for its Translational & Clinical Research unit — making Syngene the only pharma and biotech company in India to receive this recognition.

Recognised by TIME magazine and Statista among the “World’s Best Companies in Sustainable Growth 2026”, ranking in the global top three and #1 in India in the Pharma and Biotech category.

As Syngene continues to invest in AI, novel modalities, and advanced manufacturing platforms, the company remains positioned to capture long-term growth opportunities across the global drug development value chain, while navigating near-term client-specific volatility.