Syngene International CEO Confident Of Maintaining Mid-Teens Revenue Growth In FY26 After Strong Q1 Results

Syngene International has made a robust start to the financial year 2025-26, with a strong growth in revenue from operations and the net profit in the first quarter.

The company's Managing Director and CEO, Peter Bains, described the Q1 performance as a "very positive start to the year" and expressed confidence in maintaining the full-year guidance.

The leading global contract development and manufacturing organisation (CDMO) has guided for revenue growth to be in early teens in FY26.

“The quarter has been very pleasing, a very solid start with all indicators very much in line with expectations and consistent, so that we're very confident in maintaining guidance for the full year,” Bains said during a conversation with NDTV Profit.

“Adjusted for inventory balancing in large molecule commercial manufacturing at client level, the reported revenue growth is likely to be at mid-single digit,” Bains added. 

The company’s revenue from operations rose 11% YoY to Rs 875 crore in Q1FY26 from Rs 790 crore in Q1FY25. Ebitda increased 19% YoY to Rs 224 crore in Q1FY26 while the Ebitda margin stood at 25%, compared to 23% in the year-ago period. Profit after tax surged 59% YoY to Rs 87 crore in Q1FY26 from Rs 54 crore in Q1FY25.

Bains clarified that the figure for profit growth was slightly inflated by a one-off item related to a gratuity fund and will not affect results for the remainder of the year.

The Q1FY26 performance was driven by strong momentum in its research services division. The contract research firm has seen continued success in converting pilot projects into larger, more significant programmes.

"In our manufacturing services, we've made good operational progress. The highlight being that we've now operationalised the Unit 3 biologics facility in Bengaluru with the first clinical batch to a customer provided there,” the CEO said.

He also noted that its Bayview facility, the company's first foothold in the US market, is on track to become operational in the second half of the current fiscal year.

Addressing the broader industry landscape, Bains acknowledged that biotech funding from venture capital has not yet fully recovered to pre-pandemic levels.

However, the company continues to attract strong interest from multinational biopharma companies, both large and mid-sized, through requests for proposals (RFPs) and pilot studies, which have shown a high conversion rate into larger programmes.

“That underpins our confidence in maintaining the guidance for the full year,” the top executive underlined.

Shares of Syngene International ended 1.47% lower on the NSE at Rs 670.75 apiece, while the benchmark Nifty50 closed at 25,062.1, down 0.63%.