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Informist, Monday, May 5, 2025

By P Madhu Kumar

MUMBAI - Steady growth in research services, rising biosimilar sales, and stable performance in the generics segment are likely to drive an on-year rise in both the top line and bottom line for Biocon Ltd. in the March quarter, according to analysts. The company's consolidated net profit is expected to rise around 25% on year to INR 1.69 billion, supported by steady operational performance and new product launches such as Liraglutide, used to treat type–2 diabetes, in the UK. The lowest estimate for consolidated net profit was INR 1.20 billion from Motilal Oswal Financial Services Ltd. and the highest was INR 2.29 billion from Kotak Institutional Equities.

Biocon's consolidated net sales are expected to grow by over 5% on year for the quarter ended March to INR 41.20 billion, according to estimates by six brokerages. The highest estimate for net sales was INR 42.27 billion from Kotak Equities, while the lowest was INR 38.69 billion from JM Financial Institutional Securities Pvt. Ltd.

Analysts expect Biocon's biosimilars business would have grown moderately in the latest quarter. Kotak Equities projects an 8.5% sequential growth in biosimilars sales, reaching $294 million for the quarter, led by market share gains in key products and traction in emerging markets. Nuvama Wealth Management also forecasts over 8% on-quarter rise in biosimilars revenue supported by the launch of Ustekinumab in the US. The drug is a monoclonal antibody medication used for the treatment of Croh's disease.

Kotak sees a 6% sequential rise in the generics business. However, Motilal Oswal expects a 6% on-year decline in generics due to pricing erosion across key markets, which is likely to be partially offset by new launches.

On the research services front, Syngene International, Biocon's research services arm, is expected to grow 16–21% on a year-on-year basis, driven by a recovery in biotechnology funding. Nuvama estimates revenue in research services at $129 million for the March quarter, marking a 17% on-year rise.

Most brokerages expect Biocon's earnings before interest, tax, depreciation, and amortisation margins to increase on a sequential basis. According to Nuvama, a jump of 348 basis points in the company's EBITDA margin for the latest quarter to 23.2% would be supported by improved contribution from higher-margin research services and new biosimilar launches.

Phillip Capital has the highest estimate for the company's EBITDA at INR 10.64 billion, while JM Financial has the lowest estimate of INR 7.50 billion.

Biocon will release its financial results for the March quarter Thursday. Investors and analysts will closely monitor management commentary on margin trends, market penetration of biosimilars, new drug launches, and regulatory updates for Biocon's US and Europe business units.

Following are the Jan-Mar earnings estimates for Biocon based on reports from six brokerages, in descending order of the estimate of net profit in INR million:

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Edited by Subhojit Sarkar

US$1 = INR 84.31

Edited by Subhojit Sarkar

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