Syngene International (SYNGENE) Q3 25/26 earnings summary

Executive summary

• Q3 revenue from operations declined 3% year-on-year to INR 917 crore, mainly due to ongoing impact from a single large molecule biologics product.

• Nine-month revenue grew 3% year-on-year to INR 2,702 crore, with steady underlying business performance outside the impacted product.

• Strategic 10-year extension of the Bristol-Myers Squibb partnership through 2035, supporting over 700 scientists and expanding integrated services.

• Investments continued in scientific capabilities, manufacturing technologies, facility expansions, and new commercial-scale facilities for liquid-filled capsules.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Q3 operating EBITDA was INR 209 crore (23% margin), profit after tax before exceptional items at INR 73 crore; Q3 PAT margin at 7.8% (vs 13.6% in Q3 FY25).

• Nine-month operating EBITDA was INR 615 crore (23% margin), profit after tax before exceptional items at INR 227 crore; 9M PAT margin at 8.2% (vs 10.9% in 9M FY25).

• Q3 reported PAT was INR 15 crore, down 89% year-on-year, impacted by an exceptional item related to labor code changes.

• Exceptional items in Q3 FY26 included a non-recurring expense of Rs. 706 million (consolidated) and Rs. 658 million (standalone) due to changes in labour laws.

• Basic EPS (consolidated) for Q3 FY26 was Rs. 0.37, compared to Rs. 1.67 in the previous quarter and Rs. 3.27 in Q3 FY25.

Outlook and guidance

• Full-year revenue expected to decline 3%-5% in constant currency, with operating EBITDA margin of 22%-23%.

• CapEx for the year estimated at $45 million.

• Impact from the single large molecule product expected to continue into FY 2027.

• Continued investment in new technologies, AI, and advanced processes to drive future growth.

• The company continues to monitor regulatory changes and will adjust compliance and accounting as new labour codes are finalized.