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Syngene International Q2 Results: Net profit tanks 52% on lower Zoetis revenue, forex hedge losses - Published OnOct 27, 2026 | 22:40 IST - Last Updated OnOct 27, 2026 | 22:40 IST Weaker partner revenue and currency hedges pulled down quarterly earnings, even as sequential revenue rebounded on stronger CDMO traction. The firm secured milestone biologics manufacturing contracts and advanced its AI-driven research platforms. Find out how management plans to protect margins against ongoing headwinds. Leading contract research &manufacturing organization Syngene International Ltd on Tuesday (October 27) reported a 52% year-on-year decline in net profit to ₹32 crore for the second quarter of financial year 2026-27, compared with ₹67 crore in the year-ago period. Revenue fell 8.6% year-on-year to ₹833 crore from ₹911 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) declined 26% to ₹147.4 crore from ₹199 crore. EBITDA margin narrowed to 17.7% from 21.9% in the corresponding quarter last year. Executive Chairperson, Kiran Mazumdar-Shaw, said, "Syngene’s strategic priority remains to strengthen its position as an integrated research, development and manufacturing partner to the global life sciences industry, with a renewed emphasis on differentiated, high-value services and CDMO capabilities as key drivers of long-term growth. ALSO READ | Syngene International Q3 Results: Net profit dives 89% on large-molecule biologics impact It is encouraging to see early signs of progress in this direction, with improved performance in our CDMO business and growing customer engagement across our development and manufacturing services. This reinforces our confidence in the long-term potential of our investments in global manufacturing infrastructure, advanced capabilities and emerging modalities." Separately, the company strengthened its integrated drug discovery (IDD) business by bringing its Chemistry, Biology and Biotherapeutics capabilities under a unified leadership structure. Effective October 1, 2026, Dr Jayashree Aiyar, Chief Scientific Officer, assumed additional responsibility for Discovery Services. Syngene signed its first manufacturing agreement for its Bayview biologics facility with a large pharmaceutical customer, marking a milestone in its large-molecule manufacturing operations. The company also secured an agreement to manufacture clinical supplies at its Bengaluru biologics manufacturing facility, Unit 3. ALSO READ | Syngene shares down 8% after Q1 results disappointment, revenue outlook cut Siddharth Mittal, Managing Director and CEO, said, "Our second quarter saw sequential revenue growth of 13%, supported by positive traction in our CDMO business. Operating EBITDA margin improved by 6 percentage points, while PAT stood at ₹32 crore, compared with a loss of ₹9 crore in the preceding quarter. On a year-on-year basis, revenue declined 9%, while operating EBITDA margin stood at 18%, in line with expectations, primarily reflecting lower Zoetis revenues and forex hedge losses. Adjusted for the forex hedge loss, the operating EBITDA margin would be in the mid-20s range for the quarter. A key highlight of the quarter was the signing of our first manufacturing agreement for the Bayview biologics facility in the U.S., strengthening our global manufacturing capabilities. Our focus remains on enhancing our integrated drug discovery offering, sharpening our commercial execution, improving asset utilisation and cost competitiveness, and translating our scientific capabilities into sustainable business growth." ALSO READ | Syngene International Q4 net profit falls 19%, but revenue up 2%; declares dividend In the emerging modalities segment, Syngene completed an oligonucleotide manufacturing programme for a leading global pharmaceutical company. The programme involved the development and manufacture of a small interfering RNA (siRNA) molecule, requiring specialised expertise in oligonucleotide technology, process optimisation and scale-up. The company also commissioned a new Clinical Translational Sciences (CTS) laboratory in Bengaluru. The facility brings together clinical biomarker development and validation, biobanking, patient stratification, precision medicine and bioanalytical capabilities within an integrated ecosystem. Syngene continued investing in artificial intelligence (AI), automation and digital technologies across Discovery Services. It implemented ChemVoyager, an AI-enabled synthesis planning platform, along with automated analytical systems and end-to-end sample-tracking solutions to support connected and data-driven research workflows. Shares of Syngene International Ltd ended at ₹370.50, up by ₹10.75, or 2.99%, on the BSE. ALSO READ | Syngene CEO Peter Bains quits; Siddharth Mittal to take over from July
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