Syngene International (SYNGENE) Q2 26/27 earnings summary

Executive summary

• FY27 positioned as a transition year focused on commercial execution, CDMO-led growth, differentiated discovery services and operating efficiency.

• Q2 operating revenue was Rs 8,327 million, up 13% QoQ and down 9% YoY; reported PAT was Rs 322 million, below the prior-year quarter.

• Sequential improvement was described as early progress; sustained growth, stronger profitability and better returns on capital remain key tests of recovery.

Financial highlights

• Q2 operating EBITDA was Rs 147 crore, down 26% YoY; margin was 18%, up 6 percentage points QoQ.

• A Rs 61 crore FX hedge loss weighed on Q2 EBITDA; excluding it, operating EBITDA margin was in the mid-20s.

• Q2 PAT before exceptional items was Rs 38 crore; a Rs 6 crore after-tax termination-benefit charge brought reported PAT to Rs 32 crore, versus a Rs 9 crore loss in Q1.

• H1 FY27 revenue was Rs 15,687 million, down from Rs 17,851 million; PAT was Rs 232 million versus Rs 1,538 million.

• Consolidated Q2 net FX fluctuation loss was Rs 614 million versus Rs 118 million a year earlier; H1 loss was Rs 1,115 million versus Rs 166 million.

Outlook and guidance

• FY27 EBITDA margin guidance was maintained at mid-20s excluding FX hedge losses; similar hedge losses are expected in H2 under existing forward contracts.

• Manpower-cost optimization is complete, with benefits from other cost actions expected to build over coming quarters.

• Bayview process development is planned in India during FY27, followed by drug-substance manufacturing in Baltimore in FY28, subject to regulatory approval for commercial supply.

• H2 priorities include converting pipeline opportunities, quality and timely delivery, capacity utilization and cost discipline; one quarter does not establish sustained recovery.