Global brokerage Macquarie has retained its ‘Outperform’ rating on the stock with a price target of ₹735, despite describing the quarter as an all-round miss.
The brokerage said that Q1 revenue of ₹730 crore missed its estimates by nearly 20%, while EBITDA fell 42% short of expectations. EBITDA margin came in at 19.1%, below its estimate of 26.5%.
Syngene reported a net loss of ₹9 crore during the quarter, which included an exceptional charge of ₹10 crore related to a termination benefit.
The company’s June-quarter performance was impacted by lower offtake from a key biologics client and forex hedge losses, although cost optimisation measures helped partly cushion the impact.
Revenue declined 16% year-on-year and 29% sequentially, while operating margin slipped to a multi-quarter low. The company also reported its first quarterly loss in several quarters.
|
Q1FY27 |
Q4FY26 |
Q1FY26 |
QoQ |
YoY |
|
|
REVENUE |
736 |
1036.5 |
874.5 |
-29.0% |
-15.8% |
|
EBITDA |
90.8 |
303.4 |
206.4 |
-70.1% |
-56.0% |
|
MARGINS |
12.3% |
29.3% |
23.6% |
-57.9% |
-47.7% |
|
PROFIT |
-9 |
147.9 |
86.7 |
-106.1% |
-110.4% |
Management commentary
Management expects the first half of FY27 to remain challenging, with revenue likely to decline during the period. However, it anticipates business momentum to improve in the second half, which should partly offset the weak first-half performance.
As a result, Syngene now expects a low-single-digit revenue decline in local currency terms for FY27, revising its earlier guidance of flat revenue growth provided after the March quarter.
Despite the weaker revenue outlook, the company has maintained its FY27 EBITDA margin guidance in the mid-20% range.
The quarter also marked a leadership transition, with Kiran Mazumdar-Shaw taking over as Executive Chairperson, as the company prepares for its next phase of growth.
Syngene International shares ended 1.1% higher at ₹413.50 on Wednesday. The stock has declined more than 36% so far this year.
First Published: Jul 30, 2026 8:51 AM IST
