Biocon delivered exceptional financial results for the June quarter, with consolidated net profit surging 355% to ₹141 crore compared to ₹31 crore in the year-ago period, according to latest exchange filings. Revenue from operations grew 16.5% year-on-year to ₹3,572 crore from ₹3,100 crore, demonstrating robust top-line growth. The company's EBITDA increased 7% to ₹902 crore from ₹847 crore a year earlier, while EBITDA margin remained stable at 21% compared to 19.43% in the previous year. Gross EBITDA stood at ₹847 crore with a margin of 19.53%, supported by improved profitability in the Biopharma business and lower finance costs following balance sheet optimization measures. Profit before tax stood at ₹128 crore, up 32% from ₹97 crore in Q1 FY26, while the company recorded a net tax credit of ₹92 crore compared to a net tax outgo of ₹77 crore in the same period last year.
The company's Biopharma business continued to be the key growth driver during the quarter, with revenue rising 17% year-on-year to ₹3,615 crore, as reported by exchange filings. Biosimilars revenue grew 16% to ₹2,855 crore, while generics revenue increased 21% to ₹760 crore, aided by momentum from recent biosimilar and generic product launches across key markets. However, services revenue declined 16% to ₹736 crore due to continued challenges in the business. The biopharma business contributed 83% to Biocon's revenue, while services made up 17% of total revenue during the quarter. The growth in EBITDA was supported by improved profitability in the Biopharma business, which helped offset continued challenges in the services business. Net R&D expenses for Q1 FY27 added up to ₹240 crore, up 17% year-on-year, reflecting the company's continued investment in research and development capabilities.
Executive Chairperson Kiran Mazumdar-Shaw told Mint that Biocon is not rushing to react to proposed US tariffs on generic drugs, viewing the move as a negotiation tactic rather than a real threat. The company remains in a wait-and-watch mode while exploring US manufacturing partnerships if required. "There are certain products that we are already looking at making in the US. We announced that we are looking at a partnership in insulins for fill and finish and we are looking at some other opportunities that we have of bringing biologics manufacturing in the US through Syngene," Shaw explained. She noted that the company has already expanded manufacturing capabilities in the US and is open to looking at other opportunities, emphasizing that "You can partner, you can outsource… what is the right balance is what we need to look at." Shaw described the tariff proposal as "more like a negotiating threat and less of a real threat" and expressed confidence that the company will wait and watch without believing the tariffs will be carried through.
According to exchange filings, Biocon commercialised Yesafili in the US as an interchangeable biosimilar to Aflibercept during the quarter, along with launching Evfraxy for bone health across multiple European markets. The company also expanded its presence in emerging markets through new product approvals and partnerships. CEO Shreehas Tambe noted that Biocon launched Bosaya and Aukelso (biosimilar Denosumab), Yesafili (biosimilar Aflibercept) and generic Liraglutide in the US during the quarter, while also securing European Medicines Agency approval for its insulin fill-finish facility in Malaysia. The company has already begun seeing encouraging customer interest for Yesafili, its biosimilar version of blockbuster eye drug Eylea, which was launched in the US earlier this month. Generic liraglutide has become operational in the US, with initial revenues beginning to flow during the first quarter, and the company expects the product to contribute more meaningfully in subsequent quarters while also pursuing opportunities in Europe.
CEO Shreehas Tambe expressed optimism about the company's future prospects, stating that "the second half has to be much more exciting than the first half" during the company's post-results earnings call. He noted that the combination of new product launches and the company's expanding presence in the US market would support stronger revenue and margin performance later in the fiscal year. The management expects momentum to strengthen in H2FY27, driven by new US biosimilar and generic launches, improved operating leverage, and a favourable product mix. While Biopharma remained the key growth engine, Biocon acknowledged that its research services business, Syngene, continues to face demand headwinds, but expects the business to perform better in the second half under new leadership as commercial execution improves and investments in contract development and manufacturing capabilities begin to yield results.
