Siddharth Mittal took charge as Managing Director and CEO of Syngene International four months ago, inheriting a company that had lost much of its momentum as the crown jewel of the Biocon group. According to reports from Moneycontrol, Mittal acknowledged that "the turnaround has not happened. We still have a lot to do" even as the company returned to profit in the second quarter. The CEO is embarking on what he describes as a deep operational cleanup that could take several quarters before investors see the full benefits.
In the second quarter, Syngene showed early signs of stabilization with revenue rising sequentially to ₹833 crore and operating EBITDA improving to ₹147 crore, translating into an EBITDA margin of about 18 percent, up from 12 percent in the preceding quarter. As reported by Moneycontrol, the company reported a net profit of ₹32 crore, compared with a loss in the June quarter. However, the stock price has halved, down almost 50 percent in the last year, reflecting the deeper structural issues the new CEO is addressing.
According to Mittal's candid assessment, one of the biggest issues was the absence of strong commercial leadership after Syngene failed to appoint a dedicated commercial head following its previous business development leader's exit several years ago. As reported by Moneycontrol, this resulted in a "weak" and "directionless" commercial organization with a thin business pipeline as global competition intensified. To address this gap, Mittal has hired a new commercial head, reorganised sales teams, strengthened customer engagement and begun reconnecting with clients across the US, Europe and Japan. The CEO personally met major customers to understand where Syngene had fallen behind competitors, with the company having substantial unused biologics manufacturing capacity including facilities in Bengaluru and the recently acquired Bayview site in the US.
The company has undertaken manpower optimization and broader cost-control measures, with some senior executives exiting voluntarily while others were asked to leave as part of the restructuring. According to Moneycontrol, Mittal said fresh leadership and new thinking were necessary after years of underperformance. Executive Chairperson Kiran Mazumdar-Shaw echoed that view, stating the company had become inefficient and siloed and needed "surgical decisions" to right-size operations. Mittal noted that previous management attempted cost cuts but simultaneously added people, blunting the impact of those efforts, with customers being lost but employee costs remaining.
Syngene's discovery-services business faces mounting pressure from both Indian rivals and Chinese contract research organizations, with discovery still contributing nearly two-thirds of revenue. As reported by Moneycontrol, Mittal acknowledged that Chinese players have moved significantly ahead in areas such as automation, artificial intelligence and speed of execution, allowing them to deliver faster outcomes despite charging more than Indian firms. To fight back, the company plans to shift its discovery business away from the traditional full-time-equivalent model towards higher-value fee-for-service offerings powered by AI, automation and integrated scientific capabilities. Mittal believes the future growth engine will increasingly be CDMO, particularly biologics manufacturing, with the company already winning new manufacturing contracts including its first deal for the Bayview biologics facility.
Mittal says the industry tailwinds are returning with global customers increasingly adopting "China-plus-one" sourcing strategies and biologics demand remaining strong. According to Moneycontrol, Mittal is careful not to overpromise, setting a goal to complete most corrective actions by the end of FY27, while acknowledging that AI-led transformation, automation and capacity ramp-up will extend into FY28 and beyond. The CEO emphasizes "We are fixing the basics first. The benefits of the changes will come over time" as the company cleans up years of strategic drift while trying to regain its position as India's leading CRDMO.
