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Informist, Friday, May 8, 2026

 

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--Biocon: Look forward to reduce debt in FY27
--CONTEXT: Comments by Biocon management in post-earnings analyst call 
--Biocon: Capital investment phase is over for us 
--Biocon: Aiming to get maximum profitability from capex done so far 
--Biocon: Will consolidate business in next 4 qtrs, then accelerate growth 
--Biocon: Going forward, aim is to improve margins in FY27 

 

By Avishek Rakshit and Ruchira Kagita 

 

MUMBAI – Biocon Ltd. will focus on ramping up product launches in the US and the rest of the world in financial year 2026-27 (Apr-Mar) and expects to see the benefits in the second half of FY27, the company's management said in a post-earnings conference call Friday. The biosimilars business is entering FY27 on a strong footing, Chairperson Kiran Mazumdar-Shaw told analysts in the conference call.

 

Bosaya and Aukelso are doing well in the US and YESINTEK approvals will support growth, according to the management. In the March quarter, biosimilars revenue grew 12% on year to INR 27.56 billion. The launch of Denosumab in the US is seen playing out well for the company, it added.

 

In the generics segment, oncology and immunology products performed well, the company said. It also said one of the key launches in the US market is of Aflibercept. The management sees "tremendous" potential from Insulin Aspart, and is looking to ramp up this product in the US.

 

Given that the company's plan to buy its subsidiary Biocon Biologics Ltd. is now final, most of the capital expenditure plans are behind them, the top executives said. The merger strengthened the balance sheet and operating leverage has started to kick in, the management said, adding that the emphasis will now be on improving profitability from the assets gathered. The company is unlikely to focus on any greenfield expansion.

 

Business will be consolidated in the next four quarters and the management will "set it up for acceleration" in FY27. The free cash flows gained by the company will be used to reduce debt, Chief Financial Officer Kedar Upadhye told analysts. Some currency-linked advantages are also likely to lend support in the first half of FY27, the CFO said. 

 

Further, the management said that earnings before interest, taxes, depreciation, and amortisation margins will inch up in FY27 as sales rise. "As we bring the business up in a sustainable manner you will see the EBITDA growth that you've seen already in the margin profile improvement," Chief Executive Officer Shreehas P. Tambe said during the conference call. 

 

The market size of Biocon's total insulin franchise has crossed $300 million, and it continues to focus on this segment, the management said. The market size for Adalimumab is also beyond $250 million, it added. "It's a tremendous opportunity... there are limited players and the product's going to be there forever," Tambe said. 

 

On the sales mix front, 40% of total biosimilar sales are from North America, 35% from Europe and a part of Japan, and 25% from the emerging markets, the management said. The company's focus will not entirely be on upping its market share. "...our focus is always profitable growth and not necessarily market shares," the CEO said. 

 

Adjusted for exceptional items, Biocon's consolidated net profit in the March quarter fell 40% on year to INR 2.06 billion, and was below analysts' estimate of INR 2.12 billion. The company's consolidated revenue from operations for the March quarter went up by just 2.3% on year to INR 45.17 billion, and was largely in line with the Street view. At 1144 IST, shares of Biocon rose 2.5% to INR 391.75 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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