Syngene International Limited , a leading contract research and manufacturing services company, has reported mixed financial results for the second quarter of fiscal year 2026. The company saw a modest increase in revenue but experienced a significant decline in profitability.

Revenue Growth

For Q2 FY26, Syngene reported revenue from operations of 9.11 billion rupees, representing a 2% year-on-year increase from 8.91 billion rupees in Q2 FY25. This growth, albeit modest, indicates the company's ability to maintain its business momentum in a challenging environment.

Profit Decline

Despite the revenue growth, Syngene's profitability took a substantial hit:

• Consolidated net profit declined to 671.00 million rupees from 1.06 billion rupees in the same period last year, marking a 36.7% decrease.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell to 2.15 billion rupees compared to 2.61 billion rupees year-over-year.
• EBITDA margin compressed to 23.2% from 28.8% in the previous year's corresponding quarter.

Financial Highlights

All financial figures are in billion rupees, except for Net Profit which is in million rupees

Half-Year Performance

For the first half of FY26, Syngene's performance showed some resilience:

• Revenue from operations increased by 6% to 17.85 billion rupees.
• Reported revenue grew by 6% to 18.18 billion rupees.
• However, EBITDA decreased by 2% to 4.39 billion rupees.
• Net profit (before exceptional items) declined by 4% to 1.54 billion rupees.

Management Commentary

Peter Bains, Managing Director and CEO of Syngene International Limited, commented on the results: "Our Q2 performance was driven by underlying revenue growth from research services which compensated for the anticipated inventory correction in biologics manufacturing. We are maintaining our annual guidance for revenue for FY26."

Bains also highlighted a significant new contract win: "This quarter, we won our first contract for a global phase III clinical trial from a U.S.-based biotech company which will recruit patients across clinical sites in U.S. and India."

Strategic Developments

Syngene announced several strategic initiatives:

1. Expansion of clinical trials footprint to Australia, New Zealand, the UK, Sri Lanka, and Eastern Europe.
2. Plans to expand its biologics facility in Bengaluru with a GMP bioconjugation suite for end-to-end manufacturing of Antibody Drug Conjugates (ADCs).
3. Progress on the Bayview biologics manufacturing facility in the U.S., which is on track for operationalization in the second half of the year.

Sustainability Achievements

The company also reported significant strides in sustainability:

• Syngene's laboratories received the highest level 'Green Certification' from My Green Lab (MGL) with a score exceeding 94%.
• The company's EcoVadis 2025 score rose to 74/100, placing it in the 91st percentile globally for sustainability practices.

Deepak Jain, Chief Financial Officer, emphasized the company's strong financial position: "Our strong balance sheet and net cash position provide the financial flexibility to invest in key strategic priorities to support our growth."

While Syngene faces challenges in maintaining profitability, its continued revenue growth and strategic investments suggest a focus on long-term expansion and capabilities enhancement in the competitive contract research and manufacturing services sector.

Syngene International Limited , a prominent player in the Contract Research and Manufacturing Services sector, has released its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's Board of Directors has approved both standalone and consolidated financial statements prepared under Indian Accounting Standards.

Key Highlights

• Significant Write-off: During the quarter, Syngene wrote off Rs. 277.00 million (Rs. 202.00 million after tax) as unrecoverable receivables due to foreign exchange rate fluctuations.

• Segment Focus: The company continues to operate in a single segment, providing Contract Research and Manufacturing Services.

• US Biologics Facility: For the six months ended September 30, 2025, additional pre-operating costs of Rs. 165.00 million were accumulated under capital work in progress, related to their US biologics facility acquisition.

Financial Results Overview

Corporate Governance

The Board meeting for the approval of these results was held on November 5, 2025. The financial statements have undergone a limited review by statutory auditors, who have issued unqualified reports.

Outlook

The write-off due to foreign exchange rate changes may impact the quarter's profitability. However, the continued investment in the US biologics facility suggests Syngene International's commitment to expanding its capabilities and global presence in the Contract Research and Manufacturing Services space.

Investors and stakeholders should note that these results are unaudited and subject to further review. The impact of the write-off and the ongoing investments in new facilities may influence the company's short-term financial performance but could potentially contribute to long-term growth strategies.