Syngene International (SYNGENE) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue from operations declined 3% year-on-year to INR 917 crore, mainly due to the impact from a single large molecule biologics product, while nine-month revenue grew 3% year-on-year to INR 2,702 crore.

• Operating EBITDA margin for Q3 and nine months stood at 23%, with profit after tax before exceptional items at INR 73 crore for Q3 and INR 227 crore for nine months.

• BMS extended its partnership through 2035, expanding integrated services and supporting over 700 scientists.

• New commercial-scale facility for liquid-filled capsules commissioned and advanced chemistry labs added in Hyderabad.

• Board approved unaudited financial results for Q3 and nine months ended December 31, 2025, with unqualified review reports.

Financial highlights

• Q3 operating EBITDA was INR 209 crore (23% margin), down from 30% margin last year; PAT before exceptional items was down 44% year-on-year.

• Q3 FY26 PAT before exceptional items: Rs 73 Cr, down 44% YoY; reported PAT for Q3 was INR 15 crore, down 89% YoY, impacted by an exceptional item of INR 58 crore due to new labor code-related gratuity liability.

• Consolidated revenue from operations for Q3 FY26 was Rs. 9,171 million, up from Rs. 9,106 million in the previous quarter and Rs. 9,437 million in Q3 FY25.

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

• Net cash balance as of December 31, 2025, was INR 902 crore.

Outlook and guidance

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

• CapEx for the year estimated at $45 million, with continued investment in new technologies, AI, and advanced processes.

• The impact from the single large molecule product is expected to continue into the coming quarters, beyond Q4.

• Management focus is on accelerating growth in other business areas and monitoring regulatory changes.