Biocon reports a consolidated net loss of Rs 42 crore in Q3. Here’s what analysts say

Biocon: Biocon posts Q3 loss at Rs 41.8 crore on one-time loss. Overall numbers beat estimates. Revenue jumps 35%. The biopharmaceutical company has posted consolidated loss of Rs 41.8 crore for December FY23 quarter against profit of Rs 187.1 crore in corresponding period of last fiscal as there was one-time loss of Rs 271.4 crore during the quarter. Consolidated revenue grew by 35.3% YoY to Rs 2,941 crore driven by growth across key segments (generics, biosimilars and research services). At the operating level, EBITDA surged 32% YoY to Rs 644.3 crore but margin declined 55 bps on higher input cost for the quarter. Biocon has entered into a definitive agreement with Kotak Strategic Situations Fund for a structured funding upto Rs 1,200 crore.

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26 Aug, 2025 12:21

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Bengaluru-based biopharmaceutical company Biocon posted a consolidated net loss of Rs 42 crore in the quarter ended December 31, 2022 against a profit of Rs 187 crore in the corresponding period of the previous fiscal year.

It notched up a one-time loss of Rs 271 crore during the quarter, mainly owing to professional fees paid for the acquisition of the global biosimilars business of American company Viatris.

Biocon reported consolidated revenue growth of 35.3 percent year-on-year (YoY) at Rs 2,941 crore, driven by gains in segments such as generics, biosimilars and research services.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in the quarter increased 32 percent YoY to Rs 644 crore but the EBITDA margin declined 55 basis points due to higher input costs.

One basis point is one-hundredth of a percentage point.

Securities firm Jefferies maintained a "hold" rating on Biocon while reducing its price target to Rs 260 apiece from Rs 285. It also cut its EBITDA estimates for FY23-25E by 5-17 percent.

“Biocon's 3QFY23 results missed our estimate even if adjusted for one-off impact. Generics and research services posted a strong 3Q while Viatris acquisition boosted biosimilar revenues,” Jefferies said.

“We believe that the outlook for generics is improving and that leverage issues are getting addressed, but delays in new biosimilar launches, high R&D/capex intensity, and integration of Viatris front-end are key challenges to overcome,” it added.

Analysts at Motilal Oswal reiterated a "neutral" rating on Biocon with a target price of Rs 250 apiece and said the company delivered a better-than-expected operational performance led by healthy traction across segments and the Viatris biosimilar acquisition.

The earnings missed their estimates (by 16 percent) due to increased interest outgo/depreciation.

“We cut our EPS (Earnings Per Share) estimate by 22%/6%/4% to factor in a) higher interest expense, b) delay in vaccines business, and c) postponement of opportunities from potential products (b-Aspart/b-Bevacizumab). We have also lowered the EV (Enterprise Value)/EBITDA multiple for biologics business to 21x EV/EBITDA (from 25x earlier) to factor in increased competition in the biosimilar segment and longer-than expected timeline for the USFDA (Food and Drug Administration) approval”, the analysts wrote.

At 11.41 am, Biocon was trading 2.96 percent higher at Rs 245.15 on the National Stock Exchange.