Syngene FY26 profit falls 20%, revenue rises 3%

Syngene International's FY26 annual report showed profit after tax before exceptional items fell 20% to ₹379.9 crore, even as revenue from operations rose 3% to ₹3,738.7 crore, with the company citing destocking at its largest biologics manufacturing client.

In her message to shareholders, executive chairperson Kiran Mazumdar-Shaw pointed to the company's track record through a period of change in the business. "Syngene has built strong foundations over the past three decades," she said, adding that the company is well placed to capture the opportunities ahead. Outgoing CEO Peter Bains said in his message: "I am confident that Syngene is well positioned for its next phase of growth."

Operating EBITDA margin for the year stood at 25%. The company recognised exceptional items amounting to a net loss of ₹63.2 crore, tied to gratuity re-measurement following new Labour Codes and termination benefits. After this, profit after tax for FY26 was ₹316.7 crore. Syngene generated ₹520.7 crore in net cash during the year and closed with a net cash position of about ₹1,800.3 crore, Chief Financial Officer Deepak Jain said. The Board recommended a final dividend of ₹1.25 per share, amounting to a payout of ₹50.3 crore, subject to shareholder approval at the AGM on July 29.

Operationally, the Research Services division extended its partnership with Bristol Myers Squibb through 2035 and began a collaboration with Johns Hopkins University to advance early-stage drug discovery programs. The division also secured its first global Phase III clinical trial from a US-based biotech company. In Small Molecule, Syngene commissioned a new commercial-scale facility for liquid-filled hard gelatin capsules. In Large Molecule, Unit 3 in Bengaluru became operational for both drug substance and drug product manufacturing, and secured a manufacturing test license for sterile injectables following a regulatory inspection. The company also added a GMP bioconjugation suite for antibody-drug conjugate services from discovery through manufacturing.

The Bayview biologics facility in the United States progressed through site qualification and hiring during the year, with preparations underway toward operationalization in FY27, alongside its India operations.

Syngene USA Inc., the company's wholly owned US subsidiary set up in 2018, reported FY26 revenue of $12.25 million and a loss of $1.4 million.

As of the shareholding pattern disclosed in the report, promoters and promoter group held 52.68% of Syngene, foreign institutional investors held 13.90%, and mutual funds, banks, NBFCs, AIFs, QIBs and clearing members together held 26.44%. The Board also appointed S.R. Batliboi & Associates LLP as statutory auditor for a five-year term, from the AGM for FY26 to the AGM for FY31.

(The writer is an intern with businessline)