Biocon Reports 52% Drop in Net Profit to 41 Crore Rupees in Second Quarter
Key Facts
Biocon reported its consolidated financial results on November 4, 2026, for the second quarter ended September 30, posting reported net profit of 41 crore rupees, down 52% from 85 crore rupees in the corresponding period of the previous financial year. The results showed the profit decline came alongside limited growth in consolidated revenue, with revenue from operations rising 2% to 4,389 crore rupees from 4,296 crore rupees. EBITDA also fell to 865 crore rupees from 928 crore rupees, and its margin declined to 20% from 22%. The gap between revenue growth and profitability widened during the quarter. The results did not provide a verified figure for material costs or the stock's session performance, while the clearest drivers of the decline in the data were weaker operating earnings and uneven segment performance.
On a pre-exceptional-items basis, the company posted 44 crore rupees in the second quarter, against 92 crore rupees a year earlier, a decline of 52%. Profit before tax before exceptional items also fell 66% to 62 crore rupees, from 183 crore rupees in the comparable period. The figures indicate that earnings pressure was evident even before exceptional items were accounted for and was not limited to reported net profit. By contrast, finance costs fell 12% year on year to 240 crore rupees. This points to an improvement in financing costs that did not offset the decline in profit before tax or the fall in EBITDA.
Biosimilars was a growth area in the quarter's results, with revenue from the segment, which includes biosimilars and generics, rising 5% to 3,583 crore rupees from 3,422 crore rupees. Biosimilars revenue increased 3% to 2,809 crore rupees, compared with 2,721 crore rupees, while generics revenue rose 10% to 774 crore rupees from 701 crore rupees. By contrast, services revenue fell 9% to 833 crore rupees, against 911 crore rupees a year earlier. The divergence reflects the reliance of revenue growth on the biosimilars segment, while the decline in services added pressure to the operating total. Segment growth was not enough to prevent a drop in profit or a contraction in the EBITDA margin.
For the first half of financial year 2026-27, revenue from operations rose 6% to 8,725 crore rupees, from 8,237 crore rupees in the corresponding half. EBITDA was broadly stable at 1,767 crore rupees, compared with 1,774 crore rupees, with the table recording a change of 0%. The comparison shows that year-to-date revenue growth was not matched by a similar improvement in EBITDA, as was also seen in the second quarter. In the previous quarter, reported net profit was 141 crore rupees, and EBITDA was about 902 crore rupees, with a margin of 21%. These figures place the second-quarter results in the context of a profit decline compared with the first quarter, while revenue continued to grow on a first-half basis.
Explaining the performance of one of its services units, Biocon said Syngene revenue fell 9% year on year and its operating EBITDA margin was 18%. The company attributed the performance mainly to lower revenue from Zoetis and foreign-exchange hedging losses. This provides a specific explanation for weakness in services, whose revenue fell to 833 crore rupees during the quarter. As for earlier guidance, Chief Executive and Managing Director Shreehas Tambe said in August: "We expect growth momentum to accelerate during the year, driving stronger performance in the second half." The current results come at the midpoint of the financial year, while the company's calendar had listed November 5, 2026, as the expected date for the second-quarter results.
The quarter also saw commercial and manufacturing steps that the company said would strengthen its future presence. It announced the signing of its first manufacturing agreement for Syngene's Bayview biologics facility in the United States with a large pharmaceutical company. The quarterly results also cited a 10-year Pertuzumab partnership in Brazil, valued at about 400 million dollars. For the same product, Biocon said its patent settlement with Genentech enables the launch of Pebrilzo, a Pertuzumab biosimilar, in the first quarter of 2027 in the European Union and the United Kingdom, followed by the third quarter of 2028 in the United States. These dates mark announced future stages in the company's commercial expansion, alongside quarterly results showing growth in biosimilars revenue and declines in profit and EBITDA margins.