Syngene FY26: Revenue up 3%, PAT down 20% on costs

Key takeaway from Syngene’s FY26 results

Syngene International Ltd reported modest growth in revenue for both the March quarter and the full year ended March 31, 2026, while profitability declined as costs rose and margins contracted. The contract research, development, and manufacturing organization (CRDMO) said the performance was affected by the impact from a single large biologics customer, higher staff costs, foreign exchange losses, and operating expenses linked to new capacity.

For Q4 FY26, revenue from operations increased to ₹1,036.5 crore from ₹1,018 crore a year earlier, while reported profit after tax (PAT) after exceptional items fell to ₹147.9 crore from ₹183.3 crore. For FY26, revenue from operations rose to ₹3,739 crore from ₹3,642 crore, but PAT before exceptional items declined to ₹380 crore.

Q4 FY26: Revenue growth, profit and margin pressure

In the March quarter, Syngene’s revenue increased 1.8% year-on-year to ₹1,036.5 crore, and the company also reported 13% sequential growth. Despite the revenue improvement, operating profitability weakened.

Operating EBITDA declined 12% year-on-year to ₹303 crore from ₹344 crore. As a result, the operating EBITDA margin contracted to 29% from 34% in Q4 FY25, indicating higher costs relative to revenue.

On the bottom line, PAT before exceptional items stood at ₹153 crore in Q4 FY26, down 16% from ₹183 crore in the year-ago quarter. The PAT margin before exceptional items reduced to 14% from 18%. After exceptional items, Syngene reported PAT of ₹148 crore for the quarter.

FY26: Revenue up 3%, profitability down

For the full year FY26, Syngene’s revenue from operations increased 3% year-on-year to ₹3,739 crore, compared with ₹3,642 crore in FY25. But operating EBITDA declined 12% to ₹918 crore from ₹1,042 crore, leading to a fall in operating EBITDA margin to 25% from 29%.

Profitability also declined on an annual basis. PAT before exceptional items was reported at ₹380 crore for FY26, compared with ₹475 crore in FY25, reflecting a 20% decline. The PAT margin before exceptional items reduced to 10% from 13%.

After exceptional items, reported PAT for FY26 stood at ₹317 crore, compared with ₹496 crore in FY25.

What the company cited as the main headwinds

Syngene said profitability was under pressure due to the impact from a large biologics customer. It also pointed to higher staff costs, foreign exchange losses, and operating expenses linked to new capacity.

The company also referred to the cost of ramping new biologics capacity as a factor weighing on margins. These items together explain why revenue growth did not translate into higher profits in Q4 and the full year.

Management commentary and guidance reference

Peter Bains, Managing Director and CEO, said the company’s performance matched its revised guidance: “Syngene's full-year revenue from operations grew 3%, and with an EBITDA margin of 25%, performance was in line with our revised full-year guidance.”

The reference to revised guidance is important because it frames the year as one where the company expected pressure, even as it continued to report positive revenue growth.

Snapshot table: Q4 FY26 vs Q4 FY25 and FY26 vs FY25

Cash generation and spending context

Syngene reported net cash generated during FY26 of ₹521 crore post capex. While the results show margin compression, the cash number provides another operating indicator for investors tracking the company’s ability to fund capacity expansion and ongoing operations.

The company’s commentary also linked part of the cost pressure to operating expenses associated with new capacity. That makes the net cash figure a closely watched line item alongside margins in a year where profits declined.

Market impact and what investors will track

Syngene’s reported numbers highlight a clear split between revenue and profitability trends. Q4 revenue rose, but operating EBITDA fell and margins narrowed. Across FY26, a similar pattern continued, with operating EBITDA down 12% and operating margin down to 25%.

Investors will likely track how quickly the impact from the large biologics customer stabilises, and whether staff costs, foreign exchange losses, and capacity-linked operating expenses remain elevated. The company’s results also drew attention in the market, with a separate mention that Macquarie saw “27% upside” in Syngene shares, indicating continued analyst focus even amid weaker profitability.

Conclusion

Syngene closed FY26 with revenue growth of 3% to ₹3,739 crore, but profitability weakened as operating EBITDA fell to ₹918 crore and PAT before exceptional items declined to ₹380 crore. Q4 FY26 showed the same pattern: revenue improved while margins and profits contracted. Management said FY26 performance was in line with revised guidance, with EBITDA margin at 25%, and the company reported net cash generated of ₹521 crore post capex.