Bengaluru-based pharmaceutical major Biocon posted a 52 per cent year-on-year (Y-o-Y) decline in consolidated net profit to ₹41 crore for the second quarter of FY27 (Q2FY27), after about $20 million of shipments missed the quarter-end cut-off while their costs were already booked.
Revenue from operations grew 2 per cent to ₹4,389 crore. Net profit was down from ₹85 crore a year earlier and ₹141 crore in the June quarter.
The results were announced during market hours. Biocon shares rose 0.19 per cent to end at ₹344 on the BSE.
Shreehas Tambe, managing director of Biocon said the shipments, roughly 5 per cent of biopharma revenue, were delayed by ongoing geopolitical disruptions and reached customers after September. Accounting rules did not allow the revenue to be recognised in Q2, but the costs were. The products were sold in October, so the revenue will appear in Q3.
“There is no underlying business challenge,” Tambe said, calling it a revenue recognition issue.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) fell 7 per cent to ₹865 crore, with the margin slipping to 20 per cent from 22 per cent. Tambe said margins would remain in the mid-20s range but gave no specific guidance for the second half.
Biopharma revenue rose 5 per cent to ₹3,583 crore, with biosimilars up 3 per cent and generics up 10 per cent. Services revenue, mainly Syngene, fell 9 per cent Y-o-Y but grew 13 per cent sequentially. For the first half, biopharma revenue rose 11 per cent and net profit rose 57 per cent to ₹182 crore.
Tambe said the second half would be stronger, citing four growth drivers. Biocon’s ustekinumab biosimilar Yesintek holds a 34 per cent share of the US market, while its aflibercept biosimilar Yesafili is ramping up.
The company has also signed a 10-year pertuzumab supply deal in Brazil worth about $400 million, with supplies starting in Q4. A European pertuzumab launch is expected in the same quarter, in a $600-700 million market where Biocon and Organon are the only approved players. Finally, a second insulin fill-finish line in Malaysia is now operational, expanding capacity for US demand.
On semaglutide, Biocon has tech-transferred its product to Brazilian partner Biomm, which is seeking approval from regulator Anvisa. Tambe said approval could take 12 to 24 months. He declined to share the regulatory status in Canada.
Asked about the US midterm elections, Tambe said both sides of the political spectrum have focused on reducing healthcare costs and that Biocon expects to remain insulated. “We are a part of the solution,” he said.