Biocon Q2 net profit falls 51% as EBITDA margin slips YoY

Biocon Limited reported Q2 FY27 net profit of Rs 41 crore, down 51% year on year from Rs 85 crore, as earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7% to Rs 865 crore and the calculated EBITDA margin narrowed to 19.6% from 21.1%. Higher other expenses and depreciation, alongside lower other income, outweighed 2% growth in revenue from operations.

What did Biocon report for Q2 FY27?

Biocon reported total revenue of Rs 4,423 crore for Q2 FY27, up 1% from Rs 4,389 crore in Q2 FY26, while revenue from operations rose 2% to Rs 4,389 crore. Other income fell 63% to Rs 34 crore from Rs 93 crore, limiting total-revenue growth despite higher biosimilars and generics sales.

Net profit for the period was Rs 41 crore, compared with Rs 85 crore a year earlier, and earnings per share fell to Rs 0.3 from Rs 0.7. Before exceptional items, net profit was Rs 44 crore against Rs 92 crore, a 52% decrease; exceptional items net of tax were Rs 3 crore in Q2 FY27, compared with Rs 7 crore in Q2 FY26.

How did Biocon's revenue mix change in the quarter?

Biocon’s biosimilars revenue increased 3% year on year to Rs 2,809 crore in Q2 FY27, while generics revenue rose 10% to Rs 774 crore. Together, these biopharmaceutical businesses generated Rs 3,583 crore, up from Rs 3,422 crore in Q2 FY26, a 5% increase calculated from the reported segment figures.

Services revenue moved in the opposite direction, declining 9% to Rs 833 crore from Rs 911 crore. Inter-segment revenue was negative Rs 27 crore, compared with negative Rs 37 crore a year earlier, while licensing income included in revenue from operations rose to Rs 6 crore from Rs 4 crore.

The six-month trend showed a wider contrast between the businesses. In H1 FY27, biosimilars revenue grew 9% to Rs 5,664 crore and generics revenue rose 15% to Rs 1,536 crore, whereas services revenue fell 12% to Rs 1,569 crore. Revenue from operations for H1 increased 6% to Rs 8,725 crore from Rs 8,237 crore.

Why did Biocon's EBITDA margin and profit decline?

Biocon’s EBITDA declined to Rs 865 crore from Rs 928 crore even as total revenue rose by Rs 34 crore. Calculated as EBITDA divided by total revenue, the margin was 19.6% in Q2 FY27 versus 21.1% in Q2 FY26, a contraction of about 1.6 percentage points as expenses increased faster than revenue.

Manufacturing, staff and other expenses increased 3% to Rs 3,558 crore from Rs 3,460 crore. Within that total, other expenses rose 16% to Rs 825 crore, while material and power costs were broadly unchanged at Rs 1,646 crore and staff costs were Rs 850 crore, compared with Rs 848 crore a year earlier.

Below EBITDA, depreciation and amortisation rose 19% to Rs 563 crore from Rs 473 crore, while other income decreased by Rs 59 crore. Interest and finance charges declined 12% to Rs 240 crore, but that reduction did not offset lower EBITDA, lower other income and higher depreciation; profit before tax before exceptional items consequently fell 66% to Rs 62 crore.

How did Biocon's Q2 compare with Q1 FY27?

Biocon’s revenue from operations increased 1% sequentially from Rs 4,336 crore in Q1 FY27 to Rs 4,389 crore in Q2 FY27. Services revenue grew 13% from Rs 736 crore, and generics increased 2% from Rs 760 crore, but biosimilars revenue declined 2% from Rs 2,855 crore during the same comparison.

EBITDA declined 4% sequentially from Rs 902 crore, as manufacturing, staff and other expenses increased 2% to Rs 3,558 crore. The calculated EBITDA margin declined from 20.5% in Q1 FY27 to 19.6% in Q2 FY27, while other income fell from Rs 54 crore to Rs 34 crore.

Net profit fell 71% quarter on quarter from Rs 141 crore in Q1 FY27 to Rs 41 crore in Q2 FY27. The reported statement shows minority interest of Rs 18 crore in Q2, compared with Rs 1 crore in Q1, while interest and finance charges increased 13% to Rs 240 crore and depreciation and amortisation rose 3% to Rs 563 crore.

What operating developments did Biocon disclose?

Biocon said it commercialised Yesafili™ (aflibercept-jbvf) in the United States as an interchangeable aflibercept biosimilar and secured more than USD 100 million in new contracts and major payor wins for commercialised products. It also reported strong demand for Insulin Glargine and regulatory approvals for the Yesintek® autoinjector in the United States and Canada.

In Europe, Biocon received a positive Committee for Medicinal Products for Human Use opinion for its biosimilar Pertuzumab and commercialised biosimilar Ustekinumab autoinjector, Denosumab and Aflibercept across several markets. It also reported United Kingdom approval, in addition to European approval, for a second drug-product fill-finish line for Insulin Glargine at its Malaysia facility.

In emerging markets, Biocon disclosed a 10-year biosimilar Pertuzumab public-development-partnership arrangement in Brazil valued at about USD 400 million. The company also reported 13 product launches and 13 regulatory approvals across Asia-Pacific, Latin America and AFMET-CIS markets, while its services business signed its first manufacturing agreement for the Bayview biologics facility.

Conclusion

Biocon’s Q2 FY27 results show that 5% growth across biosimilars and generics was insufficient to prevent a 51% decline in reported quarterly profit to Rs 41 crore. Revenue from operations increased by Rs 93 crore year on year, but EBITDA decreased by Rs 63 crore as other expenses rose by Rs 113 crore and depreciation and amortisation increased by Rs 90 crore.

The next disclosed event is Biocon’s earnings call on November 4, 2026 at 4:00 PM IST, when management is scheduled to discuss the period ended September 30, 2026 and answer participant questions. The company’s disclosed commercial developments include more than USD 100 million in new US contracts, the approximately USD 400 million Brazilian Pertuzumab partnership, and product launches and regulatory approvals across markets.