Syngene Shares Nosedive As Q4 Profit Shrinks, FY26 Outlook Disappoints

Syngene's stock price has fallen 24% since the start of the year, and the company indicated that its operational performance is expected to decline in the upcoming quarters, primarily due to the establishment of new manufacturing capabilities.

Syngene shares fell over 10% on Thursday following a weak earnings announcement and the management's conservative outlook for the year ahead. 

Biocon's contract research and manufacturing services arm posted a 3% year-on-year (YoY) decrease in consolidated net profit for the fourth quarter (Q4) at ₹183 crore. 

It clocked in an 11% revenue growth at ₹1,018 crore. However, margins declined slightly to 33.7% versus 34.5% a year earlier.

Investors were spooked by management's commentary. CEO Peter Bains anticipates revenue growth in the early teens across all service areas.

"Adjusted for inventory balancing in large molecule commercial manufacturing at client level, the reported revenue growth is likely to be in the mid-single digit," Bains said in an exchange filing.

Furthermore, management has indicated that the company's operational performance is expected to decline in the upcoming quarters, primarily due to the establishment of new manufacturing capabilities.

CFO Deepak Jain indicated that EBITDA margins might moderate to the mid-twenties, with a potential year-on-year decline in profit after tax.

Data from Stocktwits India shows that retail sentiment remains 'neutral' on the stock.

Syngene stock has lost 24% year-to-date (YTD). 

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