Stock Market Today: Syngene International gained more than 2% in the intraday trades on Friday despite weak Indian stock markets. Should you buy or sell?
Syngene International had reported Q1 results on Wednesday. The Q1 performance marked a decent start to the new financial year 2026. The adjusted reported net profit at ₹87 crore increased 59% year-on-year compared to ₹54 crore in the year-ago quarter (excluding the exceptional item of ₹21 crore (net of tax) in Q1 FY25 relating to the final settlement from an insurance claim). The revenue from operations was up 11% year-on-year to Rs. 875 crore, while the reported EBITDA was up by 19% year-on-year, with the reported EBITDA margin at 25%.
Management Views on Syngene Q1 Results
Peter Bains, managing director and CEO of Syngene International, said that he expects the momentum to continue and expects to meet the annual guidance.
The primary driver of this momentum was the continued conversion of pilot programs into longer-term contracts within the Research Services division, as per Bains.
In our Biologics manufacturing division, the Unit III facility in Bengaluru has started operating, while the Bayview facility in the U.S. is expected to commence operations in the second half of FY26.
While Bains said that he remains mindful of ongoing macroeconomic factors, we maintain a confident outlook. The company, being primarily into services, may see a lesser impact of proposed tariffs.
Analysts views on Syngene
Jefferies India Pvt Ltd, after Q1 results, has said that Syngene’s 1QFY26 earnings beat their estimates as inventory adjustment is set to kick in from the second or third quarter.
The start of the US biologics facility in the second half, as per Jefferies, is to keep margins under check. Further management as per Jefferies has reiterated FY26 guidance despite the strong Q1, indicating near-term headwinds. Further In the past few quarters, Syngene has made senior hires at overseas pharma hubs to strengthen its business development efforts; however, Jefferies expects benefits to be realized only from FY27/28.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
