Syngene returns to profit in second quarter with earnings of 32 crore rupees after quarterly loss
Key Facts
Syngene International returned to profitability in the second quarter of fiscal 2027, posting profit after exceptional items of 32 crore rupees, following a net loss of 9 crore rupees in the first quarter. That marked a sequential improvement, but did not end the ongoing year-on-year pressure, as revenue and operating margins remained below year-earlier levels. Comparisons between quarters show an operating recovery after the previous quarter, while annual results still reflect a decline in activity and profitability. EquityBulls reported the figures from the company’s announcement. Syngene said revenue from operations fell 9% year on year, by its rounded calculation.
Operating profit before interest, taxes, depreciation and amortization was 147 crore rupees in the second quarter, with a margin of 18%. This was an improvement from the first quarter, when profit was 91 crore rupees and the margin was 12%. But performance remained weaker than in the year-earlier period, when the company reported 200 crore rupees and a margin of 22%. The figures thus showed a sequential improvement in both profit and margin, while both remained below the second quarter of fiscal 2026. The chief executive said the revenue decline and margin pressure were mainly linked to lower Zoetis revenue and foreign-currency hedging losses.
Management said revenue from operations in the first half of fiscal 2027 was 1,569 crore rupees, compared with 1,785 crore rupees in the corresponding half of the previous year. Operating profit before interest, taxes, depreciation and amortization for the first half was 238 crore rupees, with a margin of 15%. These figures put the six-month total in the context of the annual decline also seen in the second-quarter results. The company also recorded an exceptional expense of 6 crore rupees after tax in the second quarter, related to employee termination benefits. The company included the expense among the period’s exceptional items.
On expansion, Syngene said it had signed its first manufacturing agreement for the Bayview biologics facility in the United States. It said process development would begin in India during the current fiscal year, with manufacturing at the Bayview facility set to start the following year. The agreement marks a step in developing the company’s biomanufacturing business in the United States, while the facility’s operational contribution is expected at a later stage, according to the schedule announced by the company. The published information did not specify the agreement’s value or its expected financial impact. The company’s return to profit in the second quarter coincided with continued declines in revenue and operating performance compared with the previous year.