Earnings Review
High base, rising expenses weigh on Biocon's Q1 performance
This story was originally published at 22:13 IST on 7 August 2025
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--Biocon Apr-Jun consol net profit INR 314 mln
--Analysts saw Biocon Apr-Jun consol net profit at INR 991.50 mln
--Biocon Apr-Jun consol net profit INR 314 mln vs INR 6.60 bln year ago
--Biocon Apr-Jun consol revenue INR 39.42 bln vs INR 34.33 bln year ago
--Biocon Apr-Jun consol biosimilars revenue INR 24.58 bln vs INR 20.83 bln
--Biocon Apr-Jun consol generics revenue INR 6.97 bln vs INR 6.59 bln yr ago
--Biocon Apr-Jun consol research svcs revenue INR 8.75 bln vs INR 7.90 bln
--Biocon Apr-Jun consol EBITDA INR 8.29 bln vs INR 17.55 bln year ago
--Biocon Apr-Jun consol EBITDA margin 21% vs 38% year ago
--Biocon Apr-Jun consol R&D expenses INR 2.05 bln vs INR 2.28 bln year ago
--Biocon Apr-Jun biosimilars EBITDA INR 6.45 bln, up 36% on year
--Biocon Apr-Jun biosimilars EBITDA margin 26%
--Biocon Apr-Jun research services EBITDA INR 2.24 bln, up 19% on year
By Arya S. Biju
MUMBAI – Biocon Ltd. reported subdued earnings for the June quarter with both top line and bottom line failing to meet the Street's view. A high base in the year-ago quarter and higher expenses hit the company's bottom line during the reporting quarter.
The company's consolidated net profit for the quarter fell over 95% on year to INR 314 million. This was significantly lower than the INR 991.50 million expected by the Street. During the year-ago quarter, the company reported consolidated net profit of INR 6.60 billion, boosted by a one-time gain from a strategic formulations deal with Eris LifeSciences Ltd. and higher revenue contribution from the biologics business. Its consolidated revenue for the quarter rose nearly 15% on year to INR 39.42 billion. However, this, too, was below analysts' estimate of INR 39.66 billion.
The company's total expenses for the quarter rose nearly 14% on year to INR 39.25 billion. This was led by a 42% on-year jump in raw material costs to INR 12.24 billion and over 9% on-year rise in other expenses to INR 9.89 billion. The company's employee benefit expenses rose over 10% on year to INR 8.33 billion.
The company's earnings before interest, taxes, depreciation, and amortisation for the reporting quarter were INR 8.29 billion, significantly lower than the INR 17.55 billion reported in the year-ago quarter. Its EBITDA margin for the quarter contracted to 21% from 38% in the year-ago quarter. However, its core EBITDA, excluding expenses related to research and development, licencing, forex, and the one-time gain in the year-ago quarter, rose 11% on year to INR 10.03 billion. Its core EBITDA margin contracted 100 basis points on year to 25%.
Revenue from the company's largest segment, biosimilars, rose 18% on year to INR 24.58 billion, driven by robust demand across geographies. Revenue from the segment contributed to over 62% of the company's total sales during the latest quarter. The segments' EBITDA for the quarter was INR 6.45 billion, up 36% on year on a like-to-like basis. Its EBITDA margin for the quarter was 26%.
Generics segment sales rose 6% on year to INR 6.97 billion. "Growth in the quarter was primarily driven by revenues from recent drug product launches, including Liraglutide in the EU, and Dasatinib and Lenalidomide in the US, supported by higher volumes in our API (Active Pharmaceutical Ingredient) business," Siddharth Mittal, chief executive officer and managing director of the company, said in a post-earnings press release. The company remains focused on launching new products, including the commercialisation of Liraglutide across key strategic markets, Mittal added.
Revenue from the contract research, development, and manufacturing organisation segment, which was earlier called research services segment, rose 11% on year to INR 8.75 billion. The segment's EBITDA for the quarter was INR 2.24 billion, up 19% on year. The company had spent INR 2.05 billion for research and development during the quarter, down 10% on year.
"With execution momentum across all businesses and expanded capacity through acquisitions in the US by Syngene and Biocon Generics, we are well positioned to drive long-term value creation in FY26 and beyond," Kiran Mazumdar-Shaw, chairperson of the Biocon group said in the release.
The company announced its June quarter earnings post market hours. Shares of the company closed over 1% higher at INR 364.20 on the National Stock Exchange. End
Edited by Deepshikha Bhardwaj
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