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Syngene Q1FY27 sales de-grew ~16% YoY to ~₹736 crore

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: Syngene Q1FY27 sales de-grew ~16% YoY to ~₹736 crore mainly due to ongoing impact related to a single product from large-molecule biologics client. GPM for the quarter stood at 76.4% growth 132 bps YoY, EBITDA de-grew ~56% YoY to ~₹91 crore and margins decreased by 1127 bps YoY to 12.3%, primarily due to forex hedge loss of ₹50 crore. Adjusting for this the margins could have been ~19%.

View: The performance was below par across all parameters. Beside this the important thing to note is that management has trimmed down FY27 guidance from flat to single-digit revenue degrowth in rupee terms for the full year and EBITDA margins of mid-twenties mainly due to write down of inventories at the client's level for a large molecule. Recent contract extension for BMS till 2035 was a positive development but poor earnings and prolonged recovery would be a major dampener for investors’ sentiment. We will get more insights from the management call.

Impact: Negative

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