SYNGENE - Syngene Intl.

📊 NSE: SYNGENE 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 14:03

💰 Financial Performance

Revenue Growth by Segment

Research Services contributed 61% of total revenue in FY25 and remained stable, while Large Molecule Development and Manufacturing grew 22% YoY, increasing its revenue share from 21% in FY24 to 25% in FY25. Discovery Services saw slower growth due to a challenging US Biotech funding environment.

Geographic Revenue Split

98% of total revenues are derived from overseas markets, with the US market alone accounting for 61% of FY25 revenues. Other key regions include Europe and Japan.

Profitability Margins

Reported PAT margin for Q2 FY26 was 7% (INR 67 Cr), a significant decline from the previous year. FY25 PAT before exceptional items was INR 474.9 Cr, down 8% YoY from INR 518.6 Cr in FY24.

EBITDA Margin

Operating EBITDA margin for H1 FY26 stood at 23%, down from 25% in H1 FY25. FY25 EBITDA margin was 28.6% (INR 1,113.6 Cr) compared to 29.1% in FY24.

Capital Expenditure

Annual organic capex is planned at INR 500-600 Cr. Q2 FY26 capex was $10 million (approx. INR 84 Cr), with 50% allocated to research services (DMPK automation, ADC labs) and 30% to CDMO facilities in Bangalore and the US.

Credit Rating & Borrowing

ICRA reaffirmed [ICRA]AA+ (Stable) for long-term ratings and [ICRA]A1+ for short-term facilities totaling INR 1,500 Cr. Adjusted gearing is exceptionally low at 0.03 times as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Costs of chemicals, reagents, and consumables consumed represented 26.2% of revenue in Q2 FY26, totaling INR 238.5 Cr.

Import Sources

Not explicitly disclosed by country, but the company is developing a diversified supplier network to reduce dependency on high-cost suppliers.

Capacity Expansion

Acquired a Biologics manufacturing facility in Baltimore, USA (operational by Dec 2025) and another facility (Stelis Unit 3) in Bangalore to drive Large Molecule growth.

Raw Material Costs

Raw material costs in FY25 were INR 942.5 Cr, a 1% increase YoY. The company expects full-year raw material costs to stabilize around 25% of revenue.

Manufacturing Efficiency

Focus on 'level of productivity' to match 'China switcher' expectations; utilizing AI tools for process simplification and delivery turnaround time.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Achieving growth through the '1-3-5 plan' focusing on Large Molecule CDMO, operationalizing the Baltimore facility by Dec 2025, and expanding SynVent Integrated Drug Discovery (IDD) services. The company is also targeting 'China switchers'—clients moving supply chains away from China.

Products & Services

Contract research (CRO), discovery services (DMPK, ADC labs), biologics manufacturing (Large Molecule CDMO), small molecule CDMO, and payload/linker manufacturing.

Brand Portfolio

Syngene, SynVent, SynVent IDD.

New Products/Services

New capabilities in Antibody-Drug Conjugates (ADC) labs and payload/linker manufacturing to complement existing commercial capabilities.

Market Expansion

Expanding commercial teams closer to client locations in North America, Europe, and Japan; new manufacturing presence in Baltimore, USA.

Market Share & Ranking

Not disclosed in percentage terms, but noted as a leading player in the Indian contract research space.

Strategic Alliances

Maintains dedicated research centers for major clients and strategic marketing focused on high-value key account management.

🌍 External Factors

Industry Trends

The industry is shifting toward Large Molecule/Biologics CDMO; Syngene is positioning itself by increasing Biologics revenue share to 25%.

Competitive Landscape

Faces competition from global CROs, domestic players, and captive R&D centers of large pharma companies.

Competitive Moat

Moat built on high-end scientific talent, robust compliance/safety records (EcoVadis score 74/100), and long-term integrated contracts that create high switching costs.

Macro Economic Sensitivity

Highly sensitive to US Biotech funding cycles and global pharmaceutical R&D spending trends.

Consumer Behavior

Increased preference for 'one-stop-shop' providers that can handle both discovery and commercial-scale manufacturing.

Geopolitical Risks

Exposure to US-China trade shifts (China switchers) provides an opportunity, while 61% revenue concentration in the US poses a geographic risk.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to pharma regulatory approvals and clinical trial regulations; implementing digital tracking for licenses and permits.

Environmental Compliance

Earned 'Green Certification' from My Green Lab with a score >94%; EcoVadis 2025 score rose to 74/100 (91st percentile).

Taxation Policy Impact

Tax expense increased 35% YoY to INR 153 Cr in FY25. The company adopts a litigation strategy for ongoing tax cases with expert advisors.

Legal Contingencies

Ongoing tax disputes and contractual management risks are monitored by an executive-level committee; specific INR values for pending litigations not disclosed.