Syngene’s Profit Up by 14.5% in June Quarter

Bengaluru, July 23, 2025 – Syngene International Ltd’s (NSE: SYNGENE, BSE: 539268) consolidated net profit rose 14.5% year-on-year to ₹867 million, compared to ₹757 million in Q1FY25. This was driven by higher operating leverage and efficient cost management, according to the company.

Revenue from operations increased 28.9% YoY to ₹874.5 crore, up from ₹678.5 crore in the year-ago period, fueled by continued momentum across contract research, development, and manufacturing services. The company also highlighted strong client demand in the discovery and development segments, along with a healthy order pipeline for its biologics and API manufacturing platforms.

Financial Highlights – Consolidated (₹ in million)

For the quarter ended June 30, 2025 (Q1FY26), Syngene International Ltd reported revenue from operations of ₹8,745 crore, marking a 28.9% year-on-year increase but a 14.1% sequential decline from Q4FY25. Total income stood at ₹8,922 crore, up 10.4% YoY but down 13.9% QoQ. Profit before tax remained flat on a YoY basis at ₹1,013 crore, but declined sharply by 57.9% QoQ. Net profit came in at ₹867 crore, reflecting a 14.5% YoY growth but a 52.7% drop compared to the previous quarter. Basic earnings per share (EPS) for the quarter was ₹2.16, up from ₹1.89 in Q1FY25.

Note: Q4FY25 profit includes an exceptional insurance gain of ₹320 million which is absent in Q1FY26.

Stock Performance

As of the market close on July 23, 2025, shares of Syngene International Ltd (NSE: SYNGENE) settled at ₹667.00, down ₹9.00 or 1.33% from the previous trading session. The stock opened the day at ₹674.00 and saw intraday volatility, hitting a high of ₹690.00 and a low of ₹664.45. Earlier in the session, around 10:40 AM, the stock was trading higher at ₹679.20, but later succumbed to selling pressure, likely due to profit booking after its Q1FY26 earnings announcement.

Segment and Operational Update

Syngene operates as an integrated provider of Contract Research and Manufacturing Services (CRAMS). The company maintained momentum in biologics, chemical synthesis, and integrated development programs, reflecting in improved revenue and margin performance.

Strategic Developments

• Biologics Facility Expansion:
  Syngene continued to build capacity at its recently acquired biologics site in the US (from Emergent BioSolutions), investing an additional ₹55 million in pre-operating costs during the quarter. This facility adds up to 50,000L of single-use bioreactor capacity to its global network.
• India Facility Licensing:
  The company received operational licenses for one drug substance production line and a bonded warehouse at the Bengaluru biologics facility (previously acquired from Stelis Biopharma). A total of ₹3,438 million was capitalized as property, plant, and equipment, contributing to a ₹36 million rise in quarterly depreciation.
• Employee Incentive Plan:
  On April 23, 2025, the Board approved the allotment of 402,439 equity shares at face value to the Syngene Employees Welfare Trust under the Long-Term Incentive Performance Share Plan 2023.

Dividend Update

The Board had recommended a final dividend of ₹1.25 per equity share for FY25. The proposal is pending shareholder approval at the upcoming AGM.

Management Commentary

Chairperson Kiran Mazumdar-Shaw stated:

“We have entered FY26 with strong operational momentum. The licensing of our new biologics capacities in both the US and India, combined with healthy revenue growth, puts us in a favourable position to scale. These strategic expansions reinforce Syngene’s commitment to serving global customers with end-to-end, high-quality solutions.”

About Syngene International Ltd

Syngene International Ltd is a listed CRAMS company offering integrated discovery, development, and manufacturing services across sectors such as pharmaceuticals, biotechnology, animal health, and nutrition. Headquartered in Bengaluru, it is part of the Biocon Group and is listed on both NSE and BSE.

REF:https://nsearchives.nseindia.com/corporate/SYNGENE2_23072025150027_OutcomeandquickesultsCoveringletter.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations