Shares of Syngene International Ltd. dropped 10% to Rs 674.25 in early trade on April 24 after the company posted lower-than-expected Q4 FY25 financials and offered a conservative revenue growth outlook for FY26. The stock was among the top losers on the NSE.
Q4 results disappoint despite revenue and profit growth
The company reported a net profit of Rs 183.3 crore, marking a 2.8% year-on-year increase. Total revenue rose 11% to Rs 1,018 crore, compared to Rs 916.9 crore in the year-ago quarter, but missed analyst estimates of Rs 1,066 crore.
EBITDA rose 8.4% to Rs 343.6 crore, slightly below the Rs 350 crore estimate. EBITDA margins stood at 33.8%, compared to 34.4% in Q4 FY24 but higher than the projected 33%.
CEO commentary and biologics focus
Commenting on the performance, Peter Bains, Managing Director and CEO, said,
“The highlight of the quarter was the acquisition of a state-of-the-art biologics manufacturing facility in the US, strengthening Syngene’s position in the fast-growing biologics CDMO sector and providing a strategic foothold in the US market.”
He further noted that the company saw “robust growth” in its biologics CDMO business, driven by both commercial manufacturing and new development projects. The research division also contributed meaningfully, supported by a high conversion rate of pilot projects into full-scale programs within discovery services.
Also read
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Dividend and FY26 outlook
The Board of Directors has recommended a final dividend of Rs 1.25 per share, subject to shareholder approval. However, the company’s FY26 guidance for mid-single-digit revenue growth weighed on investor sentiment and contributed to the sell-off.
Updated stock details
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Current Price: Rs 674.25
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Day’s Change: -Rs 74.90 (-10.00%)
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Previous Close: Rs 749.15
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Day Range: Rs 676.60 – Rs 695.00
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Market Cap: Rs 27,186 crore
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P/E Ratio: 54.36
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Dividend Yield: 0.18%
FAQs
Why did Syngene shares drop today?
Due to a Q4 revenue and EBITDA miss, coupled with a muted revenue growth outlook for FY26.
What were the Q4 financial highlights?
Net profit of Rs 183.3 crore and revenue of Rs 1,018 crore, both below estimates.
What strategic moves did Syngene make this quarter?
Acquired a biologics manufacturing facility in the US to strengthen its global CDMO footprint.
What is the dividend payout for FY25?
A final dividend of Rs 1.25 per share has been proposed.
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