Biocon Falls On Profit Plunge In Q1: SEBI RA Believes Structural Story Is Intact Amid Generics Drag

Revenue grew 15% on strong biosimilars and CRDMO performance, while profit dropped sharply due to the absence of a one-time gain in the prior year.

Biocon shares fell nearly 4% on Friday after the company posted its first-quarter (Q1) results for FY26, showing revenue growth but a sharp drop in profit.

The company’s revenue from operations rose 15% year-on-year to ₹3,942 crore, driven by solid traction in biosimilars and CRDMO (Syngene). 

Net profit slumped 91% to ₹31 crore, mainly due to the absence of last year’s one-time ₹1,057 crore gain from a divestment.

SEBI-registered analyst Saurabh Sahu said the real story lies in execution strength, citing approvals for Kirsty (Insulin Aspart) in the U.S., the Yesafili launch in Canada, and multiple tender wins in Europe as signs that Biocon Biologics is scaling efficiently. 

The Contract Research, Development, and Manufacturing Organization (CRDMO) continues its growth path with capacity expansion and a solid client pipeline.

On the other hand, Sahu said generics remain a drag, with a sharp quarter-on-quarter decline in revenue and EBITDA erosion due to cost pressures from new facilities and R&D spending. 

He called the company’s ₹4,500 crore Qualified Institutional Placement (QIP) a clear structural positive, strengthening the balance sheet, reducing debt, and enhancing strategic flexibility.

Sahu’s investor takeaway was that biosimilars and CRDMO are bright spots; the profit drop is not a concern due to last year’s exceptional gain. Generics need margin recovery, and the QIP is a long-term positive. 

He said investors should view Q1 as a transition quarter — not blockbuster, but directionally positive.

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Biocon’s stock has declined 5.2% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<