Biocon reports 95% YoY decline in net profit, operating revenue up 15%

Time of India

4 days ago

Biocon
posted a 95% year-on-year decline in reported net profit in the first quarter ended-June. However, the company claims to have on a like-for-like basis booked a 65% increase in profit after tax, after adjusting for the one-time divestment gains it made in the same quarter a year ago from the sale of metabolic, oncology and critical care portfolio of its Branded Formulations India (BFI) business to
Eris Lifesciences
.
The company's operating revenue for Q1FY26 grew 15% year-on-year to Rs 3,942 crore, while EBITDA for the quarter was at Rs 829 crore, up by 19% with an EBITDA margin of 21% on a like-for-like basis, the company said in a statement.
'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.
'With execution momentum across all businesses and expanded capacity through acquisitions in the US by Syngene and Biocon Generics, we are well-positioned to drive long-term value creation in FY26 and beyond,' said Shaw.
Biocon concluded its first equity fundraise since the 2004 IPO, raising Rs 4,500 crores through a
Qualified Institutions Placement
(QIP) in June. The funds will be used to increase Biocon's holding in Biocon Biologics and provide an exit to the private equity investors in Biocon Biologics, the company said.
The company's API & generic formulations business reported 6% growth in revenue from operations to Rs 697 crore.
'Growth in the quarter was primarily driven by revenues from recent drug product launches, including liraglutide in the EU, and dasatinib and lenalidomide in the US, supported by higher volumes in our API business,' said Siddharth Mittal, CEO & Managing Director, Biocon.
'We remain focused on launching new products, including the commercialisation of liraglutide across key strategic markets,' he added.
Biocon Biologics posted 18% year-on-year revenue growth, driven by robust demand across key markets.
The company's CRDMO business Syngene's revenue from operations grew 11% year-on-year to Rs 875 crore and EBITDA was at Rs 224 crore, reporting a growth of 19%.
'Growth was driven by continued momentum in research services, as pilot programs transitioned into long-term contracts,' said Peter Bains, CEO & Managing Director,
Syngene International
.