Mumbai: Solid YoY performance backed Biocon’s Q3 FY26 results, with revenue from operations increasing to Rupees 4,173 crore from Rupees 3,821 crore in Q3 FY25. The reported net profit jumped significantly to Rupees 144 crore versus Rupees 25 crore a year ago. While revenue moderated from Rupees 4,296 crore in Q2 FY26, net profit still registered a 70 percent sequential rise. EBITDA for the quarter stood at Rupees 951 crore, marking a 21 percent YoY rise. The earnings improvement is attributed to margin discipline, expansion in biosimilars, and turnaround in generics.
Sequential growth builds amid cost efficiencies
While revenue saw a marginal 3 percent dip sequentially, core profitability remained resilient. Net profit before exceptional items stood at Rupees 124 crore, up 35 percent QoQ from Rupees 92 crore. Total revenue also softened slightly to Rupees 4,290 crore from Rupees 4,389 crore. However, operating leverage helped sustain EBITDA margin at 22 percent compared to 21 percent in Q2. Total R&D spend was Rupees 249 crore, steady quarter-on-quarter and up 25 percent YoY, indicating sustained innovation investment.
Biosimilars and generics anchor profitability gains
Biosimilars segment revenue reached Rupees 2,497 crore, up 9 percent YoY, despite an 8 percent dip QoQ. EBITDA in this segment climbed 44 percent YoY to Rupees 700 crore. In the generics business, revenues rose 24 percent YoY to Rupees 851 crore, supported by EU launches and improved base business. Generics EBITDA grew 22 percent YoY to Rupees 47 crore. The CRDMO segment saw a slight 3 percent revenue decline YoY to Rupees 917 crore, affected by a transient client-side issue.
Nine-month momentum steady despite Q3 moderation
For 9M FY26, Biocon’s CRDMO segment posted a 3 percent YoY increase, reflecting stable demand. The company emphasized strategic investments in GLP-1 launches, expansion of insulin partnerships, and growing oncology footprint. While challenges remain in CDMO utilization, Biocon's shift toward high-margin products and global biosimilars positioning suggests sustained value creation through FY26.
Disclaimer: This report is based on publicly disclosed financial results by Biocon Limited. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.
