Biocon Q1 results: Net profit down 95%, revenue rises 15% to ₹4,022 cr

Business Standard

4 days ago

Bengaluru-based biopharma company Biocon on Thursday reported a 95.2 per cent year-on-year (Y-o-Y) decline in consolidated net profit at Rs 31 crore in the first quarter of FY26, compared to Rs 660 crore in the same period last year. The Q1 FY25 profit included a one-time divestment gain, impacting this year's base.
The company posted profit before tax (PBT) of Rs 97 crore, down 91.3 per cent Y-o-Y in Q1 FY26.
Consolidated revenue rose 15 per cent to Rs 4,022 crore on a like-for-like basis after adjusting for the one-time gain in the base quarter. Operating revenue increased 15 per cent to Rs 3,942 crore in Q1 FY26, up from Rs 3,433 crore in Q1 FY25. EBITDA stood at Rs 829 crore, up 19 per cent, with a maintained margin of 21 per cent.
'Biocon opened FY26 with a strong performance, driven by continued gains in biosimilars and CRDMO, and a steady showing in generics. The recent QIP has strengthened our balance sheet and enables us to increase our ownership in Biocon Biologics by facilitating the exit of structured equity investors, aligning capital structure with long-term strategic priorities,' said Kiran Mazumdar-Shaw, chairperson, Biocon Group.
During the quarter, key developments included the launch of Yesafili in Canada and US Food and Drug Administration (FDA) approval for Insulin Aspart—marking Biocon's second interchangeable biosimilar insulin.
The generics business reported revenue of Rs 697 crore, a 6 per cent Y-o-Y increase, supported by new launches such as Liraglutide in the EU and Dasatinib and Lenalidomide in the US, along with higher volumes in the API segment.
'The sequential financial performance reflects the one-time positive impact of Lenalidomide launch quantities in Q4 FY25. Capitalisation of new manufacturing facilities in the previous fiscal impacted margins. We remain focused on launching new products, including the commercialisation of Liraglutide across key strategic markets,' said Siddharth Mittal, chief executive officer and managing director, Biocon Limited.
Biocon Biologics, the group's biosimilars business, reported revenue of Rs 2,458 crore, up 18 per cent Y-o-Y. EBITDA rose 36 per cent on a like-for-like basis to Rs 645 crore, with a 300-basis-point sequential margin improvement, driven by improved operating leverage.
With regulatory approvals for its Denosumab products—Vevzuo and Efraxy—in Europe and the UK, Biocon Biologics now has a global portfolio of 12 approved biosimilar molecules.
'The US FDA approval of Kirsty™ (bAspart) builds on the strong foundation established with Semglee (bInsulin Glargine), enabling us to offer patients the full range of affordable short- and long-acting insulin therapies. The launch of Yesafili (bAflibercept) in Canada marked our entry into ophthalmology and the successful commercialisation of our 10th biosimilar globally. As we enter the 'Accelerate' phase, we are confident in our ability to scale, deepen market presence, and deliver sustained growth,' said Shreehas Tambe, chief executive officer and managing director, Biocon Biologics Limited.
The CRDMO business, Syngene, reported revenue of Rs 875 crore, up 11 per cent Y-o-Y, driven by continued momentum in research services as pilot programmes transitioned into long-term contracts.
'In biologics manufacturing, operations have commenced at our Unit III facility in Bengaluru, and preparations are advancing for the Bayview facility in the US, scheduled to launch later this year. With a positive first quarter start and strategic investments in scientific capabilities, we remain confident in our ability to deliver on our guidance for the year,' said Peter Bains, CEO and managing director, Syngene International.
In the US, Biocon launched Micafungin, an injectable echinocandin anti-fungal for treating and preventing a range of fungal and yeast infections, along with Everolimus (Zortress) tablets, indicated for the prevention of kidney and liver transplant rejection. Final approval was also received for Rivaroxaban tablets, used in treating deep vein thrombosis in adults.
Domestically, Biocon received approval for Liraglutide (gVictoza) under the Government of India's newly introduced 'Reliance on Recognised Regulatory Authorities' framework, which acknowledges approvals granted by established global regulators. This marks Biocon's first Indian approval for its vertically integrated GLP-1 drug product. Preparations for launch are underway with commercialisation partners.
In Bengaluru, the oral solid dosage facility underwent an EU-GMP inspection by the Malta Medicines Authority, which issued one major observation. A response has been submitted, according to the company.
Biocon highlighted that its emerging markets business remained robust, driven by a sharper focus on eight high-impact, self-led markets, which delivered a notable increase in revenue contribution in Q1 FY26.
The company executed 12 product launches from its existing portfolio across the region and secured several strategic regulatory approvals. It also continued to file new product applications, laying the foundation for future growth.