Biocon Shares Rally Despite 60% Slump In Q4 Profit — Here's Why

Shares of Biocon are trading higher in trade on Friday after the company reported its fourth quarter earnings in the financial year ending March 2026. The stock is currently trading at Rs 390, accounting for gains of more than 2% compared to Thursday's closing price of Rs 382.25.

This follows a Q4 earnings that saw the company posting a a consolidated net profit of Rs 126 crore for Q4 FY26, down 63.5% from Rs 345 crore in the corresponding period last year. Revenue from operations rose 2.3% year-on-year to Rs 4,517 crore from Rs 4,417 crore.

Although the profitability dipped considerably, it was largely due to a high base effect, as Q4FY25 had benefitted from elevated generic lenalidomide sales. There was also one-time exceptional item impact in the current quarter, which hit profitability further.

Stripping out these distortions, the underlying performance was viewed as holding up better than the Street had braced for.

Biocon Q4 FY26 (Consolidated, YoY)

• Revenue up 2.3% at Rs 4,517 crore versus Rs 4,417 crore
• Ebitda down 5.4% at Rs 1,020 crore versus Rs 1,078 crore
• Ebitda margin at 22.6% versus 24.4%
• Net profit down 63.5% at Rs 126 crore versus Rs 345 crore

In the post-earning concall, the Biocon management admitted that external environment remains under pressure, with focus shifting to improving utilisation and expanding margins. Meanwhile, the integration of Biocon Biologics into Biocon is successfully completed. 

Currently trading with a relative strength index of 55, which suggests neutral market sentiment, shares of Biocon have given 16% returns in the past 12 months. However, on a year-to-date basis, the stock has remained flat, especially amid global disruptions.

ALSO READ: Biocon Q4 Results: Net Profit Plunges 63% On High Base, Exceptional Item

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