Biocon Q2 Results: Profit Falls 84% But Beats Estimates

Biocon Ltd.'s consolidated net profit fell 84.3% in the second quarter of fiscal 2025, but managed to beat analysts' estimates.

The drugmaker's profit declined to Rs 27.1 crore in the September quarter, as compared to Rs 172.7 crore in the year-ago period, according to an exchange filing on Wednesday. That compares with the Rs 24-crore consensus estimate of analysts tracked by Bloomberg.

Biocon Q2 FY25 Results Highlights (Consolidated, YoY)

• Revenue up 3.7% at Rs 3,590 crore (Bloomberg estimate: Rs 3,623 crore).

• Ebitda down 7.6% at Rs 685 crore (Bloomberg estimate: Rs 741 crore).

• Ebitda margin at 19.1% (Bloomberg estimate: 20.5%).

• Net profit down 84.3% at Rs 27.1 crore (Bloomberg estimate: Rs 24 crore).

Shares of Biocon closed 2.02% lower at Rs 320.4 apiece on the NSE, compared to 0.51% decline in the benchmark Nifty 50.

Eight of the 18 analysts tracking Biocon have a 'buy' rating on the stock and three recommends a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 6.8%.

Other Highlights (YoY)

The company's Biosimilars segment reported 59% total revenue, whereas Research Services contributed 24% and generics 17%.

"The company's generics business continued to face price and demand pressure that have impacted the performance, but key new formulation launches in Q3 and Q4 provide the basis of a turnaround before the year ends," said Siddharth Mittal, CEO and managing director, Biocon Ltd.

"With recent investments in research and CDMO businesses, the company is in a good position to leverage opportunities to drive medium- to long-term growth. The company remains on track to deliver within our guidance range for the full year,” said Jonathan Hunt, CEO and managing director, Syngene International Ltd.

“We maintain our outlook for a transition to accelerating growth in the second half of the year with Syngene returning to growth, building momentum in our Biosimilars business and a recovery in Generics in the latter part of H2, driven by the launch of our first GLP-1 generic in the UK. The highly successful Biocon Biologics bond issue was a standout achievement and has significantly strengthened its mid-term financial foundation,” said Peter Bains, group CEO, Biocon Ltd.