Syngene International reported a 13% sequential rise in revenue from operations to Rs 833 crore in the second quarter of FY27, while its operating EBITDA margin improved by six percentage points to 18%, signalling a recovery from the previous quarter.

 

The biopharmaceutical research, development and manufacturing services company had posted revenue of Rs 736 crore and an operating EBITDA margin of 12% in Q1 FY27. However, its Q2 performance remained below the year-ago period, when revenue stood at Rs 911 crore and the operating EBITDA margin was 22%.

 

Operating EBITDA rose to Rs 147 crore in Q2 FY27 from Rs 91 crore in the preceding quarter, but remained lower than Rs 200 crore reported in Q2 FY26.

 

Profit after tax (PAT), before exceptional items, stood at Rs 38 crore in Q2 FY27, compared with Rs 1 crore in Q1 and Rs 67 crore in the corresponding quarter last year. After exceptional items, the company reported a profit of Rs 32 crore, against a loss of Rs 9 crore in the preceding quarter and a profit of Rs 67 crore a year earlier.

 

For the first half of FY27, Syngene's revenue from operations fell 12% year-on-year to Rs 1,569 crore from Rs 1,785 crore. Operating EBITDA declined to Rs 238 crore from Rs 406 crore, while the operating EBITDA margin contracted to 15% from 23%.

 

PAT before exceptional items for the first half stood at Rs 39 crore, compared with Rs 154 crore a year earlier. PAT after exceptional items came in at Rs 23 crore, against Rs 154 crore in H1 FY26.

 

The company recognised exceptional expenses, net of tax, of Rs 6 crore in Q2 and Rs 16 crore in H1, relating to employee termination benefits under its approved policy.

 

Executive Chairperson Kiran Mazumdar-Shaw said the company remained focused on strengthening its position as an integrated research, development and manufacturing partner to the global life sciences industry, with an increased emphasis on high-value services and contract development and manufacturing organisation (CDMO) capabilities.

 

“Syngene’s strategic priority remains to strengthen its position as an integrated research, development and manufacturing partner to the global life sciences industry, with a renewed emphasis on differentiated, high-value services and CDMO capabilities as key drivers of long-term growth.

 

"It is encouraging to see early signs of progress in this direction, with improved performance in our CDMO business and growing customer engagement across our development and manufacturing services. This reinforces our confidence in the long-term potential of our investments in global manufacturing infrastructure, advanced capabilities and emerging modalities.”

 

Managing Director and CEO Siddharth Mittal highlighted the sequential improvement in revenue and operating profitability, attributing the growth to stronger traction in the CDMO business.

 

“Our second quarter saw sequential revenue growth of 13%, supported by positive traction in our CDMO business. Operating EBITDA margin improved by 6 percentage points, while PAT stood at Rs.32 crore, compared with a loss of Rs.9 crore in the preceding quarter.”

 

The Q2 results point to a sequential improvement in Syngene's operating performance, even as the company continues to face pressure on revenue, earnings and margins compared with the year-ago period. The performance of its CDMO business and the returns from investments in manufacturing infrastructure and advanced capabilities will be key factors to watch in the coming quarters.