Syngene International has accepted the resignation of Kush Parmar as an Independent Director on its Board, effective from the close of business hours on July 29, 2026. The change follows Parmar’s decision to step down due to increasing commitments in the United States and his inability to devote sufficient time to the company while residing outside India. Consequently, Parmar will also cease to be a member of the Risk Management Committee and the Science and Technology Committee.

The Board placed the resignation on record pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Para A of Part A of Schedule III. The disclosure was made to both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). The company confirmed that there are no other material reasons for the resignation beyond those stated in Parmar’s letter.

Resignation Details

Kush Parmar, identified by DIN 09212020, tendered his resignation citing personal professional constraints. His address is listed as 230 Dudley Rd., Newton, MA 02459, USA. The resignation was accepted by the Board on July 29, 2026.

Regulatory Compliance

The disclosure aligns with SEBI Master Circular no. SEBI/HO/49/14/14(7)2025-CFD-PoD2/I/3762/2026 dated January 30, 2026. Under Para A(7B) of Part A of Schedule III of the SEBI Listing Regulations, Parmar confirmed that he holds no directorships in other listed entities at the time of his resignation. He further affirmed that there are no undisclosed material reasons for his departure.

The Board expressed appreciation for Parmar’s contributions, independent judgment, and commitment during his tenure. The full details of the resignation, including the letter of resignation, have been made available on the company’s website.

Syngene International reported a 56% year-on-year decline in consolidated operating EBITDA to ₹91 crore for the quarter ended June 30, 2026, as severe foreign exchange losses and weak biologics demand weighed on performance. Revenue from operations contracted 16% to ₹736 crore, while profit after tax (PAT) before exceptional items plummeted 99% to ₹1 crore. The company’s net loss widened to ₹90 crore after accounting for ₹100 million in exceptional termination benefits. Executive Chairperson Kiran Mazumdar-Shaw and new Managing Director Siddharth Mittal outlined a strategic pivot toward CDMO and AI-led services to restore growth momentum.

The Board of Directors approved the unaudited financial results on July 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared under Indian Accounting Standards (Ind AS) and subjected to a limited review by statutory auditor B S R & Co. LLP. The audit committee reviewed the statements on July 28, 2026.

Financial Performance Overview

Consolidated revenue from operations declined to ₹7,360 million from ₹8,745 million in Q1FY26. Total income decreased to ₹7,613 million from ₹8,922 million. Operating EBITDA margin compressed sharply to 12.34% from 23.60% in the prior year period. The following table details the key financial metrics:

Standalone revenue fell 17% to ₹6,630 million. Standalone net loss widened to ₹21 million from a profit of ₹740 million in Q1FY26. Total expenses decreased to ₹7,670 million from ₹7,909 million, driven by a 20% drop in material costs to ₹1,734 million and a 4% reduction in staff costs to ₹2,814 million. However, these savings were insufficient to offset the revenue decline and currency headwinds.

Key Loss Drivers and Exceptional Items

The primary drag on profitability was a foreign exchange fluctuation loss of ₹501 million, compared to a loss of just ₹48 million in Q1FY26. Chief Financial Officer Deepak Jain attributed the performance impact to the "lack of offtake from a major biologics client" alongside the forex hedge loss. Additionally, the company recognized ₹100 million (net of tax) as an exceptional item related to termination benefits extended to employees in accordance with approved policy. This follows earlier adjustments for gratuity obligations linked to the new Labour Codes notified by the Government of India in November 2025.

Other income increased 43% to ₹253 million from ₹177 million in the previous year’s quarter. The company capitalized ₹293 million under capital work in progress during the quarter, relating to pre-operating costs for its biologics manufacturing facility acquired from Emergent Manufacturing Operations Baltimore, LLC. This facility is expected to increase single-use bioreactor capacity to 50,000L.

Leadership Changes and Strategic Outlook

Kiran Mazumdar-Shaw accepted the role of Executive Chairperson, emphasizing a focus on CDMO and AI-led advanced services. Siddharth Mittal, appointed as Managing Director and CEO, stated his immediate priorities are sharpening commercial execution and building a cost-competitive organization. The Board also appointed Dr. Vijaya Chandru and Dr. Arun Chandavarkar as Independent Directors, while Dr. Kush Parmar stepped down.

Syngene signed a Memorandum of Understanding with BRIC-Translational Health Science and Technology Institute (THSTI) for early and late-phase clinical development. The company also advanced its Syn.AI platform, developing gigascale virtual screening capabilities. Management expects business momentum to improve in the second half of FY27, targeting single-digit revenue degrowth and mid-20s EBITDA margins for the full year.

What the Numbers Show

The divergence between operational cost discipline and bottom-line erosion highlights Syngene’s acute sensitivity to currency volatility and client concentration. While material and staff costs declined by 20% and 4% respectively, the ₹501 million forex loss alone exceeded the entire PAT from Q1FY26. The compression of EBITDA margins from 23.60% to 12.34% underscores the challenge of maintaining profitability amid headwinds in the biologics segment. The strategic pivot toward AI and CDMO services aims to diversify revenue streams, but near-term results remain constrained by the delayed offtake from key clients.