Syngene International Limited Earnings Summary — Q4 FY2026
Syngene Reports Revenue Growth in Q4 but Significant Margin Compression and Year-on-Year Profit Decline
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 29.0% sequentially in Q1 FY2027.
- Revenue of ₹736 Cr is 15.8% lower year-on-year.
- Revenue has compounded at -9.3% annualised over the last 10 quarters.
- Net profit of ₹-9 Cr is 110.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -11.4% annualised across the period.
- Operating margin stands at 12.3% in Q1 FY2027.
- Operating margin compressed by 1126 bps year-on-year.
- Over the last two years operating margin has contracted by 916 bps.
- PBT margin is -2.6%.
- Expenses grew -3.4% against revenue growth of -15.8%.
- Operating profit of ₹91 Cr is 56.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 25/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 736 | 1,037 | 917 | 911 | 875 | 1,018 | 944 | 891 | 790 | 917 |
| Expenses | Stable | 645 | 733 | 708 | 711 | 668 | 674 | 660 | 646 | 620 | 600 |
| Operating Profit | Softening | 91 | 303 | 209 | 200 | 206 | 344 | 284 | 245 | 170 | 317 |
| Operating Margin | Softening | 12.3% | 29.3% | 22.8% | 21.9% | 23.6% | 33.8% | 30.1% | 27.5% | 21.5% | 34.6% |
| Other Income | Volatile | 12 | 16 | -55 | 15 | 18 | 19 | 18 | 17 | 50 | 16 |
| Interest | Stable | 10 | 12 | 12 | 13 | 12 | 16 | 12 | 13 | 12 | 13 |
| Depreciation | Stable | 112 | 112 | 114 | 117 | 111 | 106 | 109 | 111 | 107 | 111 |
| Profit Before Tax | Volatile | -19 | 196 | 28 | 85 | 101 | 241 | 181 | 137 | 101 | 209 |
| Tax | Volatile | -10 | 48 | 13 | 18 | 15 | 57 | 50 | 31 | 26 | 20 |
| Net Profit | Volatile | -9 | 148 | 15 | 67 | 87 | 183 | 131 | 106 | 76 | 189 |
| Net Margin | Volatile | -1.2% | 14.3% | 1.6% | 7.4% | 9.9% | 18.0% | 13.9% | 11.9% | 9.6% | 20.6% |
Key Takeaways
- Revenue for Q4 FY2026 reached ₹1,036 Cr, showing a recovery trend from previous quarters but marginal yearly growth.
- Net profit saw a sharp YoY decline of 19% compared to the ₹183 Cr reported in the same quarter last year.
- Operating profit margins (OPM) have stabilized at 29% in Q4, up from 23% in Q3, but still significantly lower than historical 30-35% levels.
- Significant recovery in profitability is noted sequentially (QoQ) following a very weak Q3 FY2026 (₹15 Cr profit).
- Capital expenditure remains high with CWIP at ₹1,040 Cr as the company transitions toward CDMO manufacturing.
- The balance sheet remains strong with a continued reduction in total borrowings to ₹458 Cr.
- Full-year FY2026 performance shows a marked deceleration in profit growth (-21% TTM).
Management Guidance
Management remains focused on transitioning into a multi-disciplinary partner for global pharma, though recent growth has cooled. There is an ongoing shift toward lower-margin manufacturing segments.
Sentiment Shift
Deteriorating
While Q4 showed a sequential recovery from the dismal Q3, the year-on-year trend shows persistent margin erosion and a failure to sustain peak earnings from FY25.
Outlook
The company is navigating a challenging transition from pure CRO to a capital-intensive CDMO model. While debt reduction is positive, declining ROE and profit growth suggest a cooling of the stock's premium valuation narrative.
From the Annual Report (Key Quotes)
“Recent financial performance has entered a decelerating phase.”
“Transition to manufacturing (CDMO) involves significant capital expenditure, currently weighing on return ratios.”
“Slowing growth trajectory and margin compression raise questions about maintaining premium valuation.”
Official Quarterly Documents
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This summary is AI-generated from Syngene International Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.