More Stories

Informist, Monday, Jul 20, 2026

 

By Narayana Krishna

 

HYDERABAD - Biocon Ltd. is expected to report a strong growth in earnings for the June quarter, supported by healthy traction in the biosimilars segment and steady performance in generics, according to analysts. Growth is likely to be aided by new product launches and improved operating leverage, although sequential performance is likely to moderate due to a high base and seasonal weakness in the research services business.

 

Biocon is expected to report a consolidated net profit of INR 1.7 billion for the June quarter, up over 253% from the year-ago quarter, according to the average of estimates from nine brokerages. Top line is estimated at INR 44.6 billion, up over 13% on year. On quarter, the net profit is expected to fell nearly 16%, while revenues are likely to decline over 1%, on a low base in the March quarter.

 

Estimates for Biocon's June quarter net profit vary widely, with the highest estimate at INR 2.1 billion from Kotak Securities Ltd. and the lowest at INR 780 million from Axis Securities Ltd. Revenue estimates range from a high of INR 45.9 billion from Motilal Oswal Financial Services Ltd. to a low of INR 43.6 billion from PhillipCapital (India) Pvt. Ltd.

 

The wide gap in profit estimates reflects a split view on margin recovery - between those baking in strong operating leverage from biosimilar-led growth and those factoring in lingering pressures from its research services arm Syngene International Ltd.'s weakness and gross margin compression.

 

The Bengaluru-based Biocon is into manufacturing of biosimilars, generics, and contract research and manufacturing services, with biosimilars continuing to be the key growth driver supported by global launches and expanding market presence.

 

BIOSIMILARS LEAD GROWTH

Analysts expect the biosimilars segment to remain the primary growth engine for the company in the June quarter, driven by recent product launches and market share gains in existing products. ICICI Securities expects strong growth, led by products such as insulin aspart, which is used to manage blood sugar in patients with diabetes, Yesafili, a biosimilar for eye disorders, and denosumab used in osteoporosis and cancer-related bone conditions.

 

Kotak also highlighted a ramp-up in products such as auto immune treatment drug stelara and contribution from denosumab. Axis Securities and Motilal Oswal expect biosimilars to deliver a double-digit growth, supported by new launches including liraglutide, a glucogon-likepeptide-1 drug used in diabetes and weight management, particularly in the UK and European markets.

 

The generics segment is expected to see a steady growth, aided by the scale-up of existing products and new launches. Kotak and Motilal Oswal expect strong traction from liraglutide in global markets, while Axis Securities noted that growth may be partly offset by a focus on improving margins over volumes.

 

The research services business, led by Syngene, is expected to remain subdued during the quarter, with ICICI Securities and Kotak flagging seasonal weakness and lower offtake from select clients. Nuvama also expects a sequential decline in the segment due to seasonality.

 

Margins are expected to improve on a yearly basis, supported by operating leverage and favourable product mix, particularly higher contribution from biosimilars. The company's earnings before interest, tax, depreciation, and amortisation margin for the June quarter is estimated in the range of about 21.0–21.3%, compared with around 19.0% a year ago, as per PhillipCapital and Nuvama. Kotak also expects margin expansion to about 21.2%, though gross margins may see some pressure.

 

The company's June quarter EBITDA is estimated at INR 9.4 billion, up nearly 13.6% on year but down over 12.2% on quarter. The highest estimate of INR 10.5 billion is from Bank of America Global Research and the lowest is INR 7.7 billion from Axis Securities.

 

Key development under watch for the quarter include the more clarity on market share gains for key biosimilar products, pricing trends in major markets, progress on approvals for semaglutide in regions such as Canada and Brazil, traction in new biosimilars, and recovery in the research services business. Biocon will announce it's earnings on Wednesday.

 

Of the seven research reports available on the company with Informist, five have a "buy" or equivalent rating on the stock with an average target price of INR 458 per share, while two have a "sell" rating with a price target of INR 350.

 

The stock has risen nearly 15% since the announcement of its March quarter earnings on May 8. At 1045 IST, the company shares traded at INR 425.85 on the National Stock Exchange, down 0.3% from their previous close.

 

Following are the Apr-Jun earnings estimates for Biocon based on reports from eight brokerage firms in the descending order by the estimate of net profit in INR billion:

 

Brokerages	Net Sales	Net Profit	EBITDA
360 ONE Capital Market Pvt Ltd	44.28	2.52	--
Kotak Securities Ltd	45.17	2.12	9.58
Bank of America global research	44.38	2.04	10.48
Motilal Oswal Financial Services Ltd	45.89	2.02	10.05
Nuvama Wealth Management Ltd	44.33	1.79	9.44
ICICI Securities Ltd	44.62	1.59	9.37
JM Financial Institutional Securities Pvt Ltd	44.85	1.46	9.51
PhillipCapital (India) Pvt Ltd	43.65	1.16	9.25
Axis Securities Ltd	44.48	0.78	7.68
Average	44.63	1.72	9.42

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.