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Informist, Wednesday, May 6, 2026

 

By Ruchira Kagita

 

Biocon Ltd. is likely to report mixed financial results for the quarter ended March. The biologics segment is seen driving growth for the company in the period, with liraglutide and the company's biosimilars business supporting sales growth. However, increased competition and the expiry of patents for generic Revlimid may cause some stress for the company.

 

Biocon's consolidated revenue is seen growing 3% on year to INR 45.50 billion, but its net profit is expected to fall nearly 35% to INR 2.12 billion, according to an average of estimates from six broking firms. Batlivala & Karani Securities India Pvt. Ltd. has the highest estimate for the company's net profit for the quarter at INR 3.52 billion. The lowest estimate is Nuvama Wealth Management Ltd.'s figure of INR 1.22 billion.

 

The highest estimate for the company's revenue for the March quarter is from ICICI Securities Ltd. at INR 47.11 billion. The lowest is again from Nuvama at INR 42.92 billion. Biocon's earnings before interest, taxes, depreciation, and amortisation for the period are likely to fall over 17% on year to INR 9.22 billion, according to an average of estimates from five brokerages. Higher sales from biosimilars are likely to have supported the biopharmaceutical company's margin growth sequentially in the reporting quarter, Nuvama noted in its report.

 

Biosimilar sales for the company are expected to be healthy over the medium term, according to brokerages. Citigroup Inc. forecast the company's biosimilar sales growing at a compounded annual growth rate of 16?tween the financial year 2025-26 (Apr-Mar) and FY28. The brokerage, however, highlighted that competition in the biosimilars market is set to intensify. Kotak Securities Ltd. has pegged the rise in Biocon's sales from biosimilars in the US during the March quarter at 11% on year.

 

The company's US sales, excluding generic Revlimid, in the three months trailing February stood at $305 million compared to $387 million during the same period last year, Nomura Equity Research noted in a report. However, there are no significant headwinds for the company in Europe. Liraglutide sales in Europe and the UK are likely to remain healthy.

 

Both Kotak Securities and JM Financial Institutional Securities Pvt. Ltd. expect a subdued March quarter for Biocon's contract research, development, and manufacturing organisation subsidiary Syngene International Ltd. However, the company's management has said that challenges in the business were triggered by one customer and are transient in nature.

 

During the quarter under review, Biocon received approvals from the US Food and Drug Administration for the abbreviated new drug applications it had filed for its liraglutide injection Saxenda and the tuberous sclerosis complex-treating Everolimus. Citing data from IQVIA MAT, the company said the market for the liraglutide injection stood at $127 million as of December.

 

For the full financial year, brokerage Motilal Oswal Financial Services Ltd. has estimated the company's consolidated revenue to go up by over 10% to INR 168.48 billion and its net profit to slide over 53% to INR 4.27 billion from INR 9.17 billion in FY25.

 

For FY26, the company had guided for its margins to be in the mid-twenties. It had also planned capital expenditure of $225 million for the year. However, the brokerages' estimates largely indicate that the company may not achieve its margin guidance.

 

Investors will be keen to understand the company's plan to hold on to its market share in the US amid heightened competition, particularly in the generics segment, and the progress made in receiving approval for liraglutide in Canada. The management's commentary on synergies from its acquisition of its subsidiary Biocon Biologics Ltd. will also be awaited.

 

Of the seven brokerage reports on Biocon available with Informist, five have a "buy" recommendation on the stock with an average target price of INR 462 and two have a "sell" stance. Wednesday, shares of Biocon closed 3.4% higher at INR 380.60 on the National Stock Exchange. Since the company reported its earnings for the December quarter, the stock has risen over 1%. The Bengaluru-headquartered company will release its earnings for the quarter and year ended Mar. 31 on Thursday.

 

Following are the Jan-Mar earnings estimates from six brokerages for Biocon in INR billion in descending order of net profit:

Brokerage Firm	Net Sales	Net Profit	EBITDA
Batlivala & Karani Securities India Pvt. Ltd.	48.37	3.52	--
Kotak Securities Ltd.	46.06	2.63	9.71
ICICI Securities Ltd.	47.11	1.93	9.14
Motilal Oswal Financial Services Ltd.	44.38	1.82	9.05
JM Financial Institutional Securities Pvt. Ltd.	44.19	1.59	8.62
Nuvama Wealth Management Ltd.	42.92	1.22	9.61
Average	45.50	2.12	9.22

 

End

 

US$1 = INR 94.61

 

Edited by Rajeev Pai

 

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