Syngene International (SYNGENE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue from operations was INR 9,437 million, up 11% year-over-year, driven by growth in Research Services and CDMO, with biologics and pilot projects converting to long-term contracts supporting future growth.

• Operating EBITDA rose 23% to INR 2,840 million, with margin improving to 31.4% in Q3 FY25.

• Profit after tax (PAT) after exceptional items increased 18% year-over-year to INR 1,311 million.

• Acquisition and renovation of a biologics manufacturing facility (Unit 3) in Bangalore added significant capacity and capabilities, expected to be operational in April.

• Strategic priorities advanced, leveraging the China Plus One trend and converting pilot projects into long-term contracts.

Financial highlights

• Q3 FY25 EBITDA margin improved to 31.4% from 29.5% a year ago, benefiting from lower material costs and efficiency gains.

• Q3 FY25 PAT before exceptional items rose 14% YoY to INR 1,311 million; after exceptional items, PAT increased 18% YoY.

• Nine-month FY25 revenue from operations reached INR 26,244 million, up 2% YoY; EBITDA margin at 28.1% vs 29.2% in 9M FY24.

• Hedge gain of INR 2 crore in Q3 versus a hedge loss of INR 12.4 crore last year.

• Staff costs rose 14% year-over-year due to salary increments and recruitment in key skill areas.

Outlook and guidance

• Q3 marked a return to growth after three quarters of decline; market dynamics, especially in U.S. biotech, are stabilizing.

• Full-year guidance revised to single-digit revenue growth and flat EBITDA, with operating EBITDA margin expected to be in the high 20s.

• Conversion of pilot projects to full contracts in Discovery Services is expected to drive growth into the next year.

• CapEx for the year on track at $60 million, with continued investment in capacity and capabilities.