Syngene International , a leading contract research, development, and manufacturing organization, has reported robust financial results for the fourth quarter and full fiscal year 2025, demonstrating resilience in a challenging market environment.

Q4 FY25 Highlights

Syngene's fourth quarter performance was particularly noteworthy:

• Revenue from operations crossed the Rs. 1,000 crore mark for the first time
• 11% year-on-year growth in Q4 revenue, reaching Rs. 1,018.00 crore
• Operating EBITDA increased by 8% compared to the same period last year
• Operating EBITDA margin of 34%

Full-Year FY25 Performance

For the full fiscal year 2025, Syngene reported:

• Revenue from operations of Rs. 3,642.00 crore, up 4% from the previous year
• Operating EBITDA growth of 3% year-on-year, maintaining a margin of 29%
• Reported profit after tax, before exceptional items, of Rs. 475.00 crore, down 8% from FY24

Strategic Expansion

A significant highlight of the year was Syngene's acquisition of a state-of-the-art biologics manufacturing facility in the United States. This strategic move:

• Increased the company's total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services
• Provided Syngene with a foothold in the US market
• Enhanced capabilities in the fast-growing biologics CDMO sector

Business Segment Performance

• Robust growth in biologics CDMO business, supported by commercial manufacturing and new development projects
• High conversion rates of pilot projects into full programs in discovery services

Management Commentary

Peter Bains, Managing Director and CEO of Syngene International Limited, commented:

"Syngene reported revenue growth of 11% year-on-year, and 8% sequentially crossing the Rs. 1,000 Cr in a quarter threshold for the first time. At the EBITDA level growth was 9% year-on-year reflecting good underlying fundamentals."

Bains added:

"Looking at the year ahead, while the wider global market dynamics remain uncertain, we expect the business momentum to continue with pipeline build in both small and large molecules, supported by new pilot programs and conversion of existing pilots in discovery services."

Financial Outlook for FY26

Syngene expects:

• Revenue growth in the early teens on an underlying basis
• Reported revenue growth likely to be at mid-single digit, adjusted for inventory balancing in large molecule commercial manufacturing at client level
• EBITDA margin to moderate from current levels to the mid-twenties due to additional operating costs and depreciation from new biologics manufacturing facilities

Dividend Announcement

The Board of Directors has recommended a final dividend of Rs. 1.25 per share for fiscal year 2025, subject to shareholders' approval.

Syngene's strong Q4 performance and strategic expansion efforts position the company well for continued growth in the evolving CRDMO sector, despite ongoing market uncertainties.

Syngene International Limited , a leading contract research, development, and manufacturing organization, has reported its financial results for the fourth quarter and full year ended March 31, 2025, with mixed performance and a disappointing outlook causing a significant drop in share price.

Q4 FY25 Performance and Share Price Impact

Syngene's shares fell 10% following the announcement of its Q4 results, which missed revenue estimates and provided a weaker-than-expected guidance for FY26. The company reported Q4 revenue growth of 11% to Rs. 1,018.00 crore, falling short of analyst expectations. This underperformance, coupled with a disappointing outlook for FY26, led to the sharp decline in share price.

FY26 Outlook and Analyst Disappointment

For fiscal year 2026, Syngene has projected single-digit growth, significantly lower than the 15% growth analysts had anticipated. This conservative outlook has raised concerns among investors about the company's near-term growth prospects.

Margin Pressure

The company's EBITDA margins declined year-over-year to 33.70% in Q4 FY25, primarily due to higher employee costs. This margin compression adds to the challenges faced by Syngene in maintaining profitability amid slower growth expectations.

Full-Year FY25 Performance

Despite the Q4 disappointment, Syngene's full-year FY25 revenue from operations grew by 4% to Rs. 3,642.00 crore, up from Rs. 3,489.00 crore in FY24. This growth aligns with the company's January guidance, reflecting a resilient performance in a challenging year.

Strategic Expansion

A significant highlight of the quarter was Syngene's acquisition of a state-of-the-art biologics manufacturing facility in the US. This strategic move strengthens the company's position in the fast-growing biologics CDMO sector and provides a foothold in the US market. The acquisition increases Syngene's total single-use bioreactor capacity to 50,000L for large molecule discovery, development, and manufacturing services.

Management Commentary

Peter Bains, Managing Director and CEO of Syngene International Limited, commented on the results: "We are encouraged to see a return to growth in the second half of the year after a muted first half, driven by a sectoral downturn in US biotech funding. Looking ahead, while the wider global market dynamics remain uncertain, we expect the business momentum to continue with pipeline build in both small and large molecules."

Deepak Jain, Chief Financial Officer, addressed the FY26 outlook, stating that the company expects reported revenue growth at the mid-single digit level. He also noted that as new biologics manufacturing facilities come into operation, additional operating costs and depreciation will impact margins.

Financial Summary

Conclusion

Syngene's Q4 FY25 results and FY26 outlook have raised concerns among investors, leading to a significant drop in share price. While the company continues to invest in strategic growth initiatives, such as the US biologics facility acquisition, the near-term challenges of revenue growth and margin pressure will be closely watched. As Syngene navigates these headwinds, its ability to leverage its expanded capabilities and adapt to evolving market conditions will be crucial for regaining investor confidence and driving long-term growth in the competitive CRDMO sector.