Shares of Syngene International Ltd. tumbled 10% to Rs 674.25 in early trade on April 24, making it one of the top losers on the NSE. The sell-off came despite the company reporting a 2.8% year-on-year increase in Q4 FY25 net profit to Rs 183.3 crore. Investor sentiment turned sharply negative due to a major guidance miss for FY26 and concerns over margin pressures.
Q4 shows growth, but below expectations
Total revenue for the quarter came in at Rs 1,018 crore, up from Rs 916.9 crore last year, but still missed Street expectations of Rs 1,066 crore. EBITDA rose 8.4% YoY to Rs 343.6 crore but was again shy of the Rs 350 crore forecast. EBITDA margins stood at 33.8%, lower than the 34.4% posted in Q4 FY24, but slightly ahead of analyst projections.
FY26 guidance spooks the Street
The key driver of the stock drop was management’s conservative FY26 revenue growth guidance. Syngene indicated that mid-single-digit growth is likely, significantly below the 15% INR revenue growth that consensus estimates had been building in. Analysts now expect 8–10% cuts to FY26 revenue estimates, along with potential 25% EBITDA cuts, especially with base business expected to grow in early teens but offset by inventory destocking in Librela.
CEO highlights strategic US expansion
Peter Bains, Managing Director and CEO, remained optimistic, stating:
“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 also noted “robust growth” in the biologics CDMO division and a high pilot-to-program conversion rate in discovery services.
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Dividend update
The Board has proposed a final dividend of Rs 1.25 per share, subject to shareholder approval.
FAQs
Why did Syngene’s stock fall despite a net profit increase?
The company’s FY26 revenue growth guidance was much lower than Street expectations, triggering earnings estimate downgrades.
What was Syngene’s FY26 revenue outlook?
Mid-single-digit growth, compared to the previously expected 15% growth in INR terms.
What was the Q4 revenue and EBITDA performance?
Revenue rose 11% YoY to Rs 1,018 crore, and EBITDA increased 8.4% to Rs 343.6 crore, both missing estimates.
What strategic move was announced this quarter?
Acquisition of a biologics manufacturing facility in the US to expand Syngene’s CDMO footprint.
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