BIOCON · Healthcare · filed 4 Nov 2026
Biocon Ltd. reported revenue of ₹4,389 cr for July to September 2026, +2.2% on the year and +1.2% on the quarter. That is slower than this quarter has grown in recent years (+11.7% on average). Over the last four quarters revenue comes to ₹17,415 cr, +5.7% on the four before.
Operating profit (EBITDA) was ₹831 cr, a margin of 18.9%, −52 bps on the year and −61 bps on the quarter. It is the narrowest margin of the last 8 quarters (range 18.9% to 24.4%). Operating costs grew +2.8%, faster than revenue at +2.2%, so operating profit grew less than sales.
Net profit was ₹56.7 cr, −57.3% on the year and −58.6% on the quarter, with earnings per share of ₹0.25. Profit before other income, one-offs and tax fell 70.1%, so 13 points of the headline growth came from outside the core business. The tax rate was −3% against an average of 21% over the previous 5 quarters, which lifted profit this quarter. Profit over the last four quarters totals ₹341 cr, −55.3% on the four before.
Of the 13 companies in Pharmaceuticals that have reported Q2 FY27 so far, Biocon Ltd. ranks 11th on revenue growth; the sector median is +12.9%. Its margin moved −52 bps on the year against a sector median of +4 bps.
Pharma quarters swing with US generic launches and price erosion, while India formulations grow more steadily. Currency gains and other income can be material, so headline profit needs a check against operating profit.
On earnings per share of ₹2.98 over the last four quarters, the stock at ₹368.50 trades at 123.7 times trailing earnings.
Half or more of pre-tax profit came from other income. What is it, and does it repeat?
Source: Results filing
A tax credit added to profit this quarter. Deferred tax recognised, or a reversal?
Source: Results filing
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Could not run on this quarter: Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹6,059 cr | ₹5,987 cr | ▲ 1.2% |
| Inventory | ₹7,145 cr | ₹6,086 cr | ▲ 17.4% |
| Cash | ₹2,204 cr | ₹2,417 cr | ▼ 8.8% |
| Bank balances | ₹219 cr | ₹375 cr | ▼ 41.7% |
| Long-term borrowings | ₹11,027 cr | ₹10,746 cr | ▲ 2.6% |
| Short-term borrowings | ₹4,083 cr | ₹4,078 cr | ▲ 0.1% |
| Trade payables | ₹7,871 cr | ₹6,706 cr | ▲ 17.4% |
| Net block | ₹9,766 cr | ₹9,473 cr | ▲ 3.1% |
| Capital work in progress | ₹4,568 cr | ₹4,613 cr | ▼ 1.0% |
| Equity | ₹34,843 cr | ₹34,032 cr | ▲ 2.4% |
| Total assets | ₹65,280 cr | ₹63,636 cr | ▲ 2.6% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹769 cr | ₹803 cr |
| Capital expenditure | −₹839 cr | −₹920 cr |
| Investing cash flow | −₹286 cr | −₹1,276 cr |
| Financing cash flow | −₹755 cr | ₹1,403 cr |
| Dividends paid | −₹106 cr | −₹90.8 cr |
Operating cash flow was 3.97× profit. Receivables at 127 days of sales (−2 days against the last year end). Inventory at 149 days of sales (+18 days).
Other matter: “The accompanying Statement includes the unaudited interim financial results/statements and other financial information, in respect of a subsidiary, whose unaudited interim financial results (before consolidation adjustments) include total assets of Rs. 57,569 million as at September 30, 2026, total revenues… Read in full
The accompanying Statement includes the unaudited interim financial results/statements and other financial information, in respect of a subsidiary, whose unaudited interim financial results (before consolidation adjustments) include total assets of Rs. 57,569 million as at September 30, 2026, total revenues of Rs. 5,609 million and Rs. 11,748 million, total net profit after tax of Rs. 855 million and Rs. 2,079 million, total comprehensive income of Rs. 855 million and Rs. 2,079 million, for the quarter ended September 30, 2026 and the half year ended on that date, respectively and net cash outflows of Rs. 90 million for the period from April 01, 2026 to September 30, 2026, as considered in the Statement which have been reviewed by its independent auditor.
Filing p. limited review report
₹0.0 cr still unused. “Raised ₹4,150.00 crore via QIP in Q4 FY26 to acquire BBL equity shares from Mylan Inc., acquire CCDs from Edelweiss and general corporate purposes, fully utilised with nil deviation.”
Noted the resignation of Dr. Mandar Shrikant Ghatnekar as Chief Technology Officer w.e.f. December 31, 2026, and approved the appointment of Mr. Mukesh Rathi as Chief Technology Officer w.e.f. January 01, 2027. (p. release p.1, outcome letter p.1)
Board of Directors of Syngene International Limited approved the voluntary liquidation of its wholly owned subsidiary, Syngene Manufacturing Limited (SMSL). (p. note 15)
Tax: Consolidated tax credit of ₹1.90 crore (current tax charge ₹30.80 crore offset by deferred tax credit ₹32.70 crore) on Profit before tax of ₹54.80 crore
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| R&D, % of sales | 5.4% | — | 5.84% |
| Gross margin | 65.34% | 66.08% | 63.98% |
| Biopharma Segment Revenue (₹ crore) | 3,583 | 3,615 | 3,422 |
| Biosimilars Segment Revenue (₹ crore) | 2,809 | 2,856 | 2,721 |
| Generics Segment Revenue (₹ crore) | 774.4 | 759.7 | 701.3 |
| Services Segment Revenue (Syngene) (₹ crore) | 832.7 | 736 | 910.6 |
Worked out from filed numbers. Biopharma Segment Revenue: Combined Biosimilars (₹2,808.60 crore) and Generics (₹774.40 crore) revenue · Biosimilars Segment Revenue: Consolidated Biosimilars revenue (Rs. 28,086 million converted to ₹ crore) · Generics Segment Revenue: Consolidated Generics revenue (Rs. 7,744 million converted to ₹ crore) · Services Segment Revenue (Syngene): Consolidated Services revenue (Rs. 8,327 million converted to ₹ crore)
Received MHRA (UK) approval in addition to EMA approval for second drug product fill-finish line for Insulin Glargine at Malaysia facility; commercial supplies underway.
Regulatory approvals expand operational fill-finish capacity to support global demand.
Interest cost declined 12% YoY to ₹240 crore while Biopharma revenue increased 5% YoY to ₹3,583 crore, helping offset competitive price erosion in select product markets.
Revenue growth across biosimilars and generics mitigates ongoing generic pricing pressure.
Portfolio is well-diversified across 12 commercialized biosimilars, 30+ generic formulations, and research services across multiple therapeutic areas.
No single-product concentration risk across Biopharma and Services segments.
Read using the Pharmaceuticals framework (named in the filing read). Primary valuation lens: P/E excluding one-time exclusivity gains.
Read more closely in this sector: Status of each US-filed plant · Price erosion stated · One-product dependence.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Pertuzumab PDP Partnership Value in Brazil | 400.00 | 10-year contract | unchanged or first given |
| Biosimilar Research and Development Pipeline | 20 | Pipeline target | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Biosimilars | ₹2,809 cr | ▲ 3.2% | ₹32.5 cr | ▼ 80.6% |
| Generics | ₹774 cr | ▲ 10.4% | −₹30.4 cr | — |
| Services | ₹833 cr | ▼ 8.6% | ₹53.7 cr | ▼ 37.0% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹3,954 cr | ₹3,917 cr | ₹3,433 cr | ₹3,590 cr | ₹3,821 cr | ₹4,417 cr | ₹3,942 cr | ₹4,296 cr | ₹4,173 cr | ₹4,517 cr | ₹4,336 cr | ₹4,389 cr |
| YoY | — | — | +0% | +4% | −3% | +13% | +15% | +20% | +9% | +2% | +10% | +2% |
| EBITDA margin | 22.8% | 23.3% | 18.1% | 19.1% | 19.7% | 24.4% | 19.4% | 19.4% | 20.0% | 22.6% | 19.5% | 18.9% |
| Other income, % of PBT | 73% | 13% | 102% | 59% | 34% | 12% | 64% | 54% | — | −11% | 43% | 63% |
| Exceptional items | — | — | — | — | — | — | — | −₹11.9 cr | — | — | −₹13.5 cr | −₹6.7 cr |
| Tax rate | 7% | 30% | 25% | 72% | 48% | 6% | 8% | 22% | — | 20% | −7% | −3% |
| Net profit | ₹753 cr | ₹223 cr | ₹862 cr | ₹27.0 cr | ₹81.0 cr | ₹459 cr | ₹89.0 cr | ₹133 cr | −₹52.0 cr | ₹199 cr | ₹137 cr | ₹56.7 cr |
| YoY | — | — | +479% | −84% | −89% | +106% | −90% | +392% | −164% | −57% | +54% | −57% |
| Core profit YoY | — | — | −122% | −50% | −53% | +54% | — | +126% | +5% | −36% | +147% | −70% |
| EPS | ₹5.50 | ₹1.13 | ₹5.49 | −₹0.13 | ₹0.21 | ₹2.87 | ₹0.23 | ₹0.66 | ₹1.08 | ₹0.78 | ₹0.87 | ₹0.25 |
| Flags | 2 | · | 2 | 1 | 1 | 2 | 2 | 3 | 1 | ✓ | 1 | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Biocon Ltd. reported revenue of ₹4,389 cr (+2.2% on the year) and net profit of ₹56.7 cr (−57.3% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −70.1% on the year, against −57.3% for reported profit.
2 checks raised a question: Half or more of pre-tax profit came from other income. What is it, and does it repeat?
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