Syngene International Ltd. shares declined more than 8% on Thursday after the company reported a consolidated net loss for the June quarter as revenue and operating profit fell from a year earlier, prompting brokerages to review the results.
The stock dropped as much as 8.06% to Rs 380.85 in early trade.
The quarterly performance fell short of expectations on both revenue and profitability, although management maintained its FY27 EBITDA margin guidance, according to Macquarie.
For the quarter ended June, Syngene reported a consolidated net loss of Rs 9 crore, compared with a net profit of Rs 86.8 crore in the same period last year.
Revenue declined 15.9% year-on-year to Rs 736 crore from Rs 875 crore. EBITDA fell 33.4% to Rs 141 crore from Rs 211 crore, while EBITDA margin narrowed to 19.1% from 24.2% a year earlier. The company also recorded a one-time cost of Rs 14 crore during the quarter.
Reviewing the results, Macquarie retained its 'Outperform' rating on the stock with a target price of Rs 735.
The brokerage said the June-quarter performance was "an all-round miss", but noted that management had "retained FY27 EBITDA margin guidance in the mid-20% range."
According to data compiled by Bloomberg, five of the nine analysts covering the stock have a 'Buy' recommendation. Two analysts each have 'Hold' and 'Sell' ratings.
The Bloomberg consensus target price stands at Rs 547.22, implying a potential upside of about 43% from the last regular traded price.
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