Syngene International Ltd. reported a subdued performance for the first quarter of FY27, with revenue and profitability impacted by lower offtake from a major biologics client and foreign exchange hedge losses. 

The company, however, remains optimistic about improved business momentum in the second half of the fiscal year, supported by its CDMO business, AI-enabled scientific platforms and continued investments in advanced capabilities.

For the quarter ended June 30, 2026, revenue from operations declined 16 per cent year-on-year to Rs. 736 crore, compared with Rs. 875 crore in the corresponding quarter last year. Operating EBITDA fell 56 per cent to Rs. 91 crore from Rs. 206 crore, with the operating EBITDA margin contracting to 12 per cent from 24 per cent.

Profit after tax (PAT) before exceptional items dropped to Rs. 11 crore from Rs. 87 crore in Q1 FY26. After accounting for exceptional expenses related to employee termination benefits, the company reported a net loss of Rs. 9 crore, compared with a profit of Rs. 87 crore in the year-ago quarter.

Kiran Mazumdar-Shaw, who has assumed the role of Executive Chairperson, said, "I have accepted to take on the role of Executive Chairperson of Syngene as we reshape the Company's next phase of growth. Syngene has built an outstanding reputation over more than three decades, underpinned by scientific excellence, customer trust, and a culture of innovation.”

“I look forward to working with Siddharth and his leadership team as we reposition the Company for sustainable growth, driven primarily by CDMO and AI-led advanced services. The Board has every confidence in the management's ability to execute with focus and discipline, while continuing to create value for all stakeholders,” added Shaw.

In his first statement as Managing Director and CEO, Siddharth Mittal said, "As I take charge of Syngene, amid headwinds that the Company is currently navigating, I look forward to working closely with the Board and our leadership team to sharpen our focus and translate our priorities into tangible business outcomes that will provide a strong foundation for long-term growth.”

“My immediate priorities are to sharpen our commercial execution, strengthen delivery across our businesses, and build a more agile, cost-competitive organization. At the same time, we will continue to invest in CDMO, AI, innovation and differentiated scientific capabilities that will strengthen our competitive position,” added Mittal.

Explaining the quarterly performance and outlook, Deepak Jain, Chief Financial Officer, said, "Our performance during the quarter was primarily impacted by the lack of offtake from a major biologics client and forex hedge loss, partially offset by our ongoing cost optimization initiatives. Consequently, the operating EBITDA margin came in at 12%.”

“We continue to maintain a strong balance sheet and financial discipline, which provides the flexibility to invest in our strategic priorities, including infrastructure, technology platforms, automation, and emerging modalities. While we expect a degrowth in the first half of the fiscal year, business momentum is expected to improve in the second half, resulting in single-digit revenue degrowth in rupee terms for the full year and EBITDA margins in the mid-20s."

On the governance front, the company has appointed Dr. Vijaya Chandru, an expert in artificial intelligence, computational biology and genomics, and Dr. Arun Chandavarkar, former CEO and Joint Managing Director of Biocon Ltd., as Independent Directors.