Syngene International reported a 20% decline in FY26 profit despite a 3% rise in revenue, as business from a single large biologics client weighed on performance, with margins also impacted by additional operating costs.
Revenue from operations rose to Rs. 3,739 crore in FY26 from Rs. 3,642 crore a year earlier, but operating EBITDA fell 12% to Rs. 918 crore, pulling margins down to 25% from 29%. Profit after tax (before exceptional items) declined to Rs. 380 crore, while reported profit after exceptional items stood at Rs. 317 crore.
The fourth quarter reflected similar pressures, even as sequential momentum improved. Revenue rose 2% year-on-year to Rs. 1,037 crore and 13% quarter-on-quarter. Operating EBITDA declined 12% to Rs. 303 crore, with margins at 29% compared to 34% a year earlier. Profit after tax (before exceptional items) dropped 16% to Rs. 153 crore, while reported profit after exceptional items was Rs. 148 crore.
The company attributed the performance to the impact of its largest biologics customer.
“Syngene’s full-year revenue from operations grew 3%, and with an EBITDA margin of 25%, performance was in line with our revised full-year guidance. The overall numbers reflect the specific impact from a single large-molecule biologics client, with the underlying business showing steady momentum,” said Peter Bains, Managing Director and CEO.
Chief Financial Officer Deepak Jain said the pressure on margins also reflects “additional operating costs as we bring the new biologics manufacturing facility in India into operations.”
The company generated Rs. 521 crore in net cash during the year after capital expenditure.
Exceptional items during the year included the impact of revised labour codes leading to higher gratuity liabilities, expenses related to employee termination benefits, and an insurance settlement.
Operationally, the company expanded capabilities in antibody-drug conjugates (ADCs), commissioning an ADC discovery laboratory during the quarter, and continued investments in emerging modalities such as peptides and ADCs.
It completed 85 client and regulatory audits during the year and secured GCP-NABL accreditation.
The board has recommended a final dividend of Rs. 1.25 per share for FY26.
