Syngene FY26 Revenue Up 3%, PAT Falls 20%
For the full year FY26, Syngene reported revenue from operations of ₹3,739 crore, up 3% from Rs 3,642 crore in FY25. Operating EBITDA declined 12% to ₹918 crore from ₹1,042 crore in the previous year. As a result, the operating EBITDA margin fell to 25% from 29%.
Profit after tax before exceptional items was ₹80 crore, down 20% from ₹475 crore in FY25. PAT margin before exceptional items reduced to 10% from 13%. Reported PAT after exceptional items stood at ₹317 crore for FY26, compared with ₹496 crore in FY25.
The exceptional items for FY26 included the impact of ₹38 crore, net of tax, relating to the net increase in gratuity liabilities on account of newly implemented labour codes, and ₹25 crore, net of tax, related to termination benefits. In FY25, the company had recorded an exceptional gain of ₹21 crore, net of tax, related to the final settlement of an insurance claim.
Cost Pressure Weighs on Margins
The detailed financial information shows that margin pressure was visible across the year. For FY26, staff costs rose to ₹1,229.7 crore from ₹1,079.2 crore in FY25, an increase of 13.9%. As a percentage of revenue from operations, staff costs rose to 32.9% from 29.6%.
Foreign exchange fluctuation loss also increased sharply to ₹60.9 crore in FY26 from ₹1.9 crore in FY25. Other expenses rose 5.9% to ₹508.1 crore, while depreciation and amortisation expenses increased 4.7% to ₹452.9 crore.
At the operating level, EBIT from operations declined 23.6% to ₹465.6 crore, with EBIT margin reducing to 12.5% from 16.7%. This indicates that the pressure was not limited to one line item, but reflected a combination of client-specific impact, higher employee costs, depreciation and other operating expenses.
Management Flags Biologics Impact, Underlying Momentum
Kiran Mazumdar-Shaw, Executive Chairperson of Syngene International, said the company is at a “pivotal moment” in its growth journey. She highlighted rising global demand for outsourcing across the life sciences sector, while also noting that biotech funding remains selective and largely concentrated on late-stage assets.
She added that Syngene’s diversified business model, spanning discovery, development and manufacturing, gives it resilience and flexibility in the current market environment. The company is also focusing on new business lines, differentiated service offerings, and investments in AI and digital capabilities.
Peter Bains, Managing Director and CEO, said Syngene’s full-year revenue growth of 3% and EBITDA margin of 25% were in line with the company’s revised full-year guidance. He stated that the overall numbers reflected the specific impact from a single large-molecule biologics client, while the underlying business continued to show steady momentum.
Deepak Jain, Chief Financial Officer, said Q4 growth of 2 per cent year-on-year and 13 per cent sequentially reflected the continuing product impact from Syngene’s largest biologics customer. He added that the full-year EBITDA margin of 25 per cent reflected this impact as well as additional operating costs from bringing the new biologics manufacturing facility in India into operations. The company generated Rs 521 crore of cash during the year after capex investment, strengthening its balance sheet.
Syngene Business Updates: Antibody-Drug Conjugates
During the quarter, Syngene continued to build capabilities in Antibody-Drug Conjugates, or ADCs. After adding a GMP bioconjugation suite earlier in the year, the company commenced operations at its ADC discovery laboratory during the quarter. The facility is equipped to handle highly potent compounds and supports high-throughput experimentation, completing an integrated platform from discovery to manufacturing.
On the quality and regulatory front, Syngene completed 14 client and regulatory audits during the quarter, taking the full-year total to 85. The company also received Good Clinical Practice – National Accreditation Board for Testing and Calibration Laboratories accreditation during the quarter.
Syngene Dividend and Leadership Changes
For FY26, the Board of Directors has recommended a final dividend of ₹ 1.25 per share, subject to shareholder approval.
The company also announced several leadership and board-level changes. Kiran Mazumdar-Shaw transitioned from Non-Executive Chairperson to Executive Chairperson effective April 1, 2026, for a five-year term. Siddharth Mittal has been appointed Managing Director and CEO effective July 1, 2026, succeeding Peter Bains. The company also announced appointments and proposed board changes, including new independent directors and additions to the executive leadership team.
