Quarterly Financial Performance (Q2 FY27 vs Q1 FY27 vs Q2 FY26)

Revenue from Operations: ₹833 Cr in Q2 FY27, representing 13% sequential growth from ₹736 Cr in Q1 FY27, but declined 9% year-on-year from ₹911 Cr in Q2 FY26.

Operating EBITDA: ₹147 Cr in Q2 FY27, significantly improved from ₹91 Cr in Q1 FY27, but declined from ₹200 Cr in Q2 FY26.

Operating EBITDA Margin: 18% in Q2 FY27, improved by 6 percentage points from 12% in Q1 FY27, but declined from 22% in Q2 FY26. Management noted that adjusted for forex hedge loss, the margin would be in the mid-20s range.

PAT before exceptional item: ₹381 Cr in Q2 FY27, dramatically improved from ₹1 Cr in Q1 FY27, but declined from ₹67 Cr in Q2 FY26.

PAT Margin before exceptional item: 4% in Q2 FY27, improved from 0% in Q1 FY27, but declined from 7% in Q2 FY26.

PAT after exceptional item: ₹32 Cr in Q2 FY27, showing significant improvement from loss of ₹9 Cr in Q1 FY27, but declined from ₹67 Cr in Q2 FY26. Exceptional items of ₹6 Cr (net of tax) were related to termination benefits.

Half-Year Financial Performance (H1 FY27 vs H1 FY26)

Revenue from Operations: ₹1,569 Cr in H1 FY27, declined 12.1% from ₹1,785 Cr in H1 FY26.

Operating EBITDA: ₹238 Cr in H1 FY27, declined 41.3% from ₹406 Cr in H1 FY26.

Operating EBITDA Margin: 15% in H1 FY27, declined 755 basis points from 23% in H1 FY26.

PAT before exceptional item: ₹391 Cr in H1 FY27, increased from ₹154 Cr in H1 FY26.

PAT Margin before exceptional item: 2% in H1 FY27, declined 606 basis points from 8% in H1 FY26.

PAT after exceptional item: ₹23 Cr in H1 FY27, declined significantly from ₹154 Cr in H1 FY26. Exceptional items of ₹16 Cr (net of tax) were related to termination benefits.

Key Business Highlights and Strategic Initiatives

Integrated Drug Discovery (IDD): Syngene strengthened its integrated drug discovery offering by unifying Chemistry, Biology and Biotherapeutics capabilities under Chief Scientific Officer Dr. Jayashree Aiyar's leadership effective October 1, 2026. Subhendu Kumar (Head of Chemistry) and Priyaranjan Pattanaik (Head of Biology) will be departing in November and December 2026 respectively.

Bayview Biologics Facility: Signed first manufacturing agreement with a large pharmaceutical customer, marking a milestone in the company's large molecule manufacturing journey. Process development activities will begin in India this fiscal, with drug substance manufacturing at Bayview expected to begin next financial year.

Biologics Manufacturing: Secured additional manufacturing contracts, including an agreement for clinical supplies from its Bengaluru biologics manufacturing facility (Unit 3).

Emerging Modalities: Successfully completed a complex oligonucleotide manufacturing program for a leading global pharmaceutical company involving development and manufacture of a siRNA molecule.

Capability Enhancement: Commissioned a new Clinical Translational Sciences (CTS) Laboratory in Bengaluru integrating clinical biomarker development, biobanking, patient stratification, precision medicine and bioanalytical capabilities.

Artificial Intelligence and Automation: Implemented ChemVoyager, an AI-enabled synthesis planning platform, alongside automated analytical systems and end-to-end sample tracking solutions.

Cost Competitiveness: Completed manpower-related cost optimization initiatives, with non-manpower cost optimization initiatives continuing. Benefits expected to be realized over coming quarters.

Recognition: Central Compound Management team received Platinum Award at 12th CII National Kaizen Circle Competition 2026 for digital innovation enhancing automation and data integrity.

Leadership Transition: Deepak Jain, Chief Financial Officer, will be moving on for personal reasons but will continue until Q3 FY27 results to ensure smooth transition.

Balance Sheet Position (as of September 30, 2026)

Total Assets: ₹66,585 million (compared to ₹70,402 million as of March 31, 2026)

Property, plant and equipment: ₹24,475 million

Capital work-in-progress: ₹11,406 million

Right-of-use assets: ₹3,639 million

Cash and cash equivalents: ₹1,199 million

Trade receivables: ₹3,855 million

Total Equity: ₹48,588 million (compared to ₹48,391 million as of March 31, 2026)

Total Liabilities: ₹17,997 million (compared to ₹22,011 million as of March 31, 2026)

Management Commentary

Kiran Mazumdar-Shaw, Executive Chairperson: Emphasized strategic priority to strengthen position as integrated research, development and manufacturing partner with focus on differentiated, high-value services and CDMO capabilities as key long-term growth drivers. Noted early signs of progress with improved CDMO performance and growing customer engagement.

Siddharth Mittal, Managing Director and CEO: Highlighted sequential revenue growth of 13% supported by CDMO business traction and 6 percentage points EBITDA margin improvement. Noted year-on-year decline primarily reflected lower Zoetis revenues and forex hedge losses. Expressed focus on enhancing integrated drug discovery offering, commercial execution, asset utilization, and cost competitiveness.

Earnings Call Information

Syngene will host Q2 FY27 results conference call on October 28, 2026 at 9:00 am IST via Zoom. Audio recording and transcript will be available on company website.

Company Overview

Syngene International Ltd. is an integrated research, development, and manufacturing services company serving global pharmaceutical, biotechnology, nutrition, animal health, consumer goods, and specialty chemical sectors. Employs over 8,300 employees including 5,700+ scientists. Operates over 3 million sq. ft of specialized facilities across India and U.S. Works with approximately 400 global customers including BMS, GSK, Zoetis, and Merck KGaA.