Syngene International has projected mid-single digit revenue growth this fiscal, tempering expectations amid macroeconomic uncertainties and a client inventory adjustment, even as underlying business momentum remains strong.
The contract research and manufacturing services pegs FY26 underlying revenue growth in "early teens", driven by broad-based performance across its research services and both small and large molecule manufacturing businesses, the company said in an earnings call. It expects reported revenue growth in the "mid single digit range" .
"Syngene performance in 2025 has been resilient, and we are exiting the year with both good revenue momentum and broad based improved pipeline visibility and potential," said managing director and CEO Peter Bains said, adding underlying growth is expected to be "broad based".
Despite the moderated reported revenue outlook, the company remains confident in its position.
"We remain confident that with Syngene diverse and well balanced portfolio across research, development and both large and small molecule manufacturing services, we are well positioned to navigate these dynamics and continue our growth story," Bains added.
Margins are expected to come under pressure. The company guided for EBITDA margins of "around the mid 20s for FY 26", a drop from the 28.6 percent in FY25.
The moderation is primarily due to the costs associated with bringing new facilities online, including a recently acquired biologics plant in Baltimore, US.
The company sees FY26 as a "transient year" due to factors like biotech funding recovery, pharmaceutical industry restructuring, and uncertainties surrounding the proposed US Biosecure Act and global tariffs.
Syngene reported a revenue growth of 4 percent at Rs 3,642 crore for FY25, meeting its revised guidance despite a "challenging year" marked by a downturn in US biotech funding in the first half. Net profit dropped 3 percent to Rs 496 crore.
The company highlighted the acquisition of the US biologics facility as a key strategic move, increasing its capacity and bringing it closer to the crucial market.
The company plans capex of around $55 million in FY26 to build capabilities, including upgrading the US site.
Despite the near-term margin pressure and inventory adjustments, Syngene remains focused on long-term growth across its diverse portfolio.
"We remain confident that with Syngene's diverse and well-balanced portfolio... we are well positioned to navigate these dynamics and continue our growth story," Bains added.
At 2.15 pm, the Syngene stock was trading at RS 619.10 on the National Stock Exchange, down 1.75 percent from the previous day.
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