💰 Financial Performance

Revenue Growth by Segment

Pharmaceuticals Drugs & Formulations revenue grew 30.5% YoY to INR 246.98 Cr in H1 FY26. Trading of Commodities revenue fell 72.7% to INR 1.05 Cr. Renting of Property revenue decreased 3% to INR 1.88 Cr.

Profitability Margins

Net Profit Margin (based on Total Comprehensive Income) improved to 14.5% in H1 FY26 from 13.0% in H1 FY25. Profit Before Tax (PBT) margin increased significantly to 16.9% from 12.8% YoY.

EBITDA Margin

EBITDA margin is approximately 18.2% for H1 FY26 (INR 45.50 Cr EBITDA on INR 249.90 Cr revenue), up from approximately 15.8% in H1 FY25.

Capital Expenditure

Not explicitly disclosed, but the company accepted a material bid for a commercial property from HDFC Bank in November 2025, indicating significant upcoming investment in fixed assets.

Credit Rating & Borrowing

Borrowing costs are minimal, with finance costs of INR 0.52 Cr in H1 FY26, representing only 0.2% of total revenue.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) and excipients; specific percentage of total cost not disclosed.

Capacity Expansion

Infrastructure expansion is planned via the acquisition of a material commercial property from HDFC Bank accepted on November 22, 2025.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company saw an inventory reduction of INR 12.82 Cr, suggesting efficient use of existing stock.

📈 Strategic Growth

Expected Growth Rate

28%

Growth Strategy

The company is focusing on its core Pharmaceutical segment, which saw 30.5% YoY growth. The acquisition of a material commercial property from HDFC Bank in Nov 2025 suggests expansion of administrative or operational footprint to support this growth. Cost optimization is evident as segment profits grew faster (73.6%) than revenue (30.5%).

Products & Services

Pharmaceutical drugs and formulations (medicines).

Strategic Alliances

The company operates through three wholly-owned subsidiaries: Synmex Pharma Pvt. Ltd., Sante Biotech Pvt. Ltd., and Vincit Biotech International Pvt. Ltd.

🌍 External Factors

Industry Trends

The Indian pharmaceutical industry is growing at 10-12% CAGR, but Syncom is outperforming at 30.5% YoY. The industry is moving towards stricter compliance and digital manufacturing.

Competitive Landscape

Operates in the highly competitive Indian generic pharmaceutical market with numerous domestic players.

Competitive Moat

Syncom's moat lies in its integrated manufacturing setup in Pithampur and its ability to scale the Pharma segment profitably (margins improved from 12.5% to 16.6% YoY). This cost leadership is a durable advantage in the generic drug market.

Macro Economic Sensitivity

Low sensitivity to interest rates due to minimal finance costs (0.2% of revenue).

Consumer Behavior

Increasing demand for affordable healthcare and generic formulations.

⚖️ Regulatory & Governance

Industry Regulations

Pharmaceutical manufacturing is subject to GMP (Good Manufacturing Practices) and pricing controls under the Drug Price Control Order (DPCO).

Taxation Policy Impact

Effective tax rate is approximately 14% based on H1 FY26 results.

⚠️ Risk Analysis

Key Uncertainties

Concentration risk in the pharma segment (98.8% of revenue); any regulatory crackdown on manufacturing sites (Pithampur) could halt nearly all revenue.

Credit & Counterparty Risk

Receivables quality appears high as trade receivables decreased by INR 5.31 Cr during H1 FY26, indicating effective cash collection.