Syngene International is seeking to broaden its revenue base and deepen its long-term partnerships after the impact of a single large commercial biologics program highlighted the risks of customer concentration in complex manufacturing, even as the rest of its research and manufacturing platform continues to make steady progress.
The research, development and manufacturing contract services company said the influence of a biologics client played into its December quarter numbers, but stressed that performance outside of that program remained steady in manufacturing and research services.
“We clearly see the financial impact of a single large commercial biologics program,” said Peter Bains, managing director and CEO of Syngene International. Business today. “But if we put that aside and look at the rest of the business, what stands out is the breadth of our diverse platform.”
Operating revenue declined 3% year-on-year to ₹917 crore in Q3FY26, while EBITDA fell 26% to ₹225 crore, with margins contracting to 24% from 31% a year earlier. Profit after tax and before exceptional items fell 44 percent year-on-year. The quarter also included a one-time impact of ₹58 crore, net of tax, related to higher gratuity provisions following changes in the labor code.
For the nine months ended December, revenue grew 3% year-on-year to ₹2,702 crore, indicating the resilience of the underlying business despite near-term pressure from the biologics program. However, profitability remained under pressure, with nine-month EBITDA down 12 per cent to ₹664 crore.
Bains said growth continues across the rest of Syngene’s manufacturing operations, spanning both small and large molecules, supported by improved capacity utilization. Research Services is also adding new programs in chemistry, biology, translational and clinical research.
“We are seeing growth in manufacturing and research services,” he said. “This reflects the strength of the platform beyond the impact of this single product.”
Syngene is not moving away from large clients, but seeking to balance size and diversification by broadening the base of programs and collaborations.
“Our strategy remains focused on building meaningful, long-term relationships,” Bains said. “At the same time, we are building diversity across platforms and collaborations, including new high-profile partnerships. »
This approach is reflected in the extension of Syngene’s long-standing partnership with Bristol Myers Squibb until 2035, giving the collaboration a ten-year horizon. The relationship, now in its 27th year, involves approximately 700 Syngene scientists who support Bristol Myers Squibb through a dedicated center and span discovery, development, manufacturing and clinical research work.
“The extended horizon allows both partners to plan how this relationship will evolve,” Bains said.
Regarding the biologics program that weighed on performance, Bains said the impact is still being felt and is expected to continue in the coming quarters.
“This is an ongoing situation and we expect it to continue to happen,” he said.
Although pricing pressure remains a factor in new contracts, Syngene is focused on adding value beyond overall price, including offering differentiated services, faster turnarounds and risk management support for customers.
“Pricing will always be part of contracts, but we are also focused on adding value in other dimensions,” Bains said.
The company has continued to invest throughout the current cycle, prioritizing capabilities in peptides, antibody-drug conjugates, oligonucleotides, PROTACs and the broader conjugation space. New and expanded facilities, particularly in the chemicals sector, are beginning to contribute, with further increases expected as utilization improves at manufacturing sites in India and the United States.
Capital spending, Bains said, will continue alongside discipline in allocation. “Investments in capabilities, technologies and capabilities will continue, as will capital discipline,” he said.
