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Biopharma stock under ₹500 plunges 4%; what should investors do?
At 02:00 PM, Biocon shares were trading at ₹350, down by 3.87 per cent on the BSE. In comparison, BSE Sensex was trading at 80,101.63 level, down by 521 points or 0.65 per cent. So far this calendar year, the shares of the company have remained largely flat, albeit in the red territory. The total market capitalisation of the company stood at ₹47,087.86 crore. At the time of writing this report, around 4.8 million shares had changed hands on the counter, cumulatively, on the NSE and BSE.
The selling at the counter came a day after the company released its earnings for the financial year 2025-2026 (Q1FY26).
Biocon Q1FY26 earnings
The biopharma company's revenue from operations for the quarter ended June 30, 2025, surged 15 per cent year-on-year (Y-o-Y) to ₹3,942 crore, as compared to ₹3,433 crore reported in the corresponding quarter of the last financial year. However, on a sequential basis, revenues were down by 11 per cent. Net profit for the quarter fell over 95 per cent in Q1FY26 to ₹31.4 crore as against ₹660 crore reported in the first quarter of financial year 2025-2026.
Segment-wise, generics revenue advanced 6 per cent Y-o-Y to ₹697 crore in Q1FY26 as against ₹659 crore reported in the same period of the previous fiscal. Meanwhile, Biosimilars witnessed a growth of 18 per cent Y-o-Y to ₹2,458 crore during the quarter under review. Biocon's contract research, development and manufacturing (CRDMO) segment's revenue rose 11 per cent. Core earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹1,003 crore in Q1FY26, up from ₹903 crore reported in the year-ago period.
"Key developments this quarter include the launch of Yesafili™ in Canada, our tenth biosimilar globally, and USFDA approval for Insulin Aspart, our second interchangeable biosimilar Insulin, further deepening our presence in the US insulin market," said Kiran Mazumdar-Shaw, chairperson, Biocon Group.
"With execution momentum across all businesses and expanded capacity through acquisitions in the U.S. by Syngene and Biocon Generics, we are well-positioned to drive long-term value creation in FY26 and beyond,' she added.
Brokerage View- Religare Broking
Ravi Singh, SVP-retail research at Religare Broking, has advised investors to avoid fresh buying for now. "Biocon raised ₹4,500 crore via a qualified institutions placement (QIP) in June to consolidate its stake in Biocon Biologics and facilitate investor exits. Investors are advised to exit their long position and ignore buying fresh for now. For upside, a clear move above 370 should sustain only then we can consider buying for the upside target of ₹400, while, on downside, 345 has immediate support for now, if it fails to hold this level then further selling could be expected," he said.
"On daily charts, Biocon has broken below an upward sloping trend line with a good volume spike, and a sustained move below the key support of ₹360 can trigger prices towards ₹338 and ₹330. Short-term moving average also signals pressure with prices trading below 21-day EMA," Ravi Singh added.
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