Syngene shares plunge 10% following muted Q4 results and conservative FY26 outlook

Syngene shares plunge 10% following muted Q4 results and conservative FY26 outlook

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Shares of Syngene International Ltd tumbled 10% on Thursday, April 24, 2025 as the company announced 3% year-on-year decline in consolidated net profit to Rs 183 crore for Q4 FY25, down from Rs 189 crore in the same period last year.

Total income for the quarter rose to Rs 1,037 crore, compared to Rs 933 crore a year earlier. For the full fiscal year, Syngene reported a net profit of Rs 496 crore, a decrease from Rs 510 crore in FY24, with total income increasing to Rs 3,714 crore from Rs 3,579 crore.

The company's cautious guidance for FY26 further unsettled investors.

"...we expect EBITDA margin to moderate from current levels to the mid-twenties and year-on-year decline in profit after tax," Deepak Jain, chief financial officer at Syngene International, said.

CNBC-Awaaz cited a brokerage note that said Syngene's FY26 guidance is significantly below expectations.

"After a tepid FY25 with overall revenue growth of 2% cc and 4% in INR terms, Syngene has guided for FY26 revenue growth of mid-single-digits (base business growth of early teens to be offset by inventory destocking likely in Librela)," the note said.

Consensus was building for 15% INR revenue growth in FY26 versus management guidance of mid-single-digits now. So, most likely there will be 8-10% cuts to FY26 revenue estimates, the note added.

The stock's decline also reflects broader concerns over the company's performance amid a challenging global biotech funding environment. Despite the downturn, Syngene highlighted strategic initiatives, including the acquisition of a state-of-the-art biologics manufacturing facility in the U.S., aimed at strengthening its position in the biologics contract development and manufacturing organization (CDMO) sector.

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