Biocon Limited reported a strong year-on-year performance for the quarter ended December 31, 2025, with revenue from operations rising 9 per cent to Rs 4,173 crore and reported net profit jumping 475 per cent to Rs 144 crore. Total revenue stood at Rs 4,290 crore, up 11 per cent from Rs 3,856 crore in Q3FY25, even as it moderated slightly from Rs 4,389 crore in the previous quarter. EBITDA for the quarter came in at Rs 951 crore, up 21 per cent year-on-year, with margins improving to 22 per cent from 20 per cent.
Profitability improves despite softer sequential revenue
On a sequential basis, revenue from operations eased about 3 per cent, but profit metrics continued to strengthen on the back of a better mix and cost efficiencies. Net profit before exceptional items rose to Rs 124 crore, a 35 per cent increase over Rs 92 crore in Q2FY26, while reported net profit was up around 70 per cent quarter-on-quarter. Core EBITDA, which excludes R&D, licensing, forex and mark to market movements, stood at Rs 1,221 crore, up 21 per cent year-on-year, with core margins at 29 per cent. Net R&D expenses were Rs 249 crore, up 25 per cent year-on-year and representing 8 per cent of revenue excluding Syngene, underscoring continued investment in the pipeline.
Biosimilars and generics anchor growth
The biosimilars business, operated through Biocon Biologics, remained the main growth engine with Q3FY26 revenue from operations of Rs 2,497 crore, up 9 per cent year-on-year. Segment EBITDA climbed 44 per cent to Rs 700 crore, reflecting a 28 per cent margin, aided by favourable product and geographic mix and operating leverage.
The generics segment, which includes APIs and generic formulations, delivered revenue of Rs 851 crore, a 24 per cent year-on-year increase. Management has attributed the performance to ongoing launches of gLiraglutide across European Union markets and improved performance in the generic formulations portfolio in the US, supported by select new launches and base business growth. The CRDMO arm Syngene reported Q3FY26 revenue of Rs 917 crore, down 3 per cent year on year, with the decline linked to the impact of a single large molecule biologics client; underlying research services demand and new wins remain steady.
Strengthened balance sheet and strategic moves
Biocon highlighted that the quarter capped a series of strategic steps aimed at simplifying its corporate structure and reducing leverage. The company has fully integrated Biocon Biologics as a wholly owned subsidiary by acquiring minority stakes in a transaction that valued the unit at about USD 5.5 billion, bringing its “One Biocon” vision to fruition. Over the past eight months, Biocon has raised nearly USD 1 billion via two qualified institution placements, including Rs 4,150 crore in January 2026, largely to fund the buyout of Mylan’s stake in Biocon Biologics. Management expects early settlement of structured debt and the fresh equity to lower interest costs by about Rs 300 crore annually by FY27, improving PBT margins.
Nine month trend and outlook
For the first nine months of FY26, the CRDMO business still posted a 3 per cent year-on-year rise in revenue, reflecting overall stability despite the Q3 headwinds. Biocon is also pushing ahead with strategic investments in GLP-1 launches, expanded insulin partnerships and a deeper oncology portfolio through new biosimilar assets such as subcutaneous trastuzumab, nivolumab and pembrolizumab. With PBT before exceptional items up 64 per cent in Q3FY26 to Rs 226 crore and net profit before exceptional items up to Rs 124 crore from Rs 13 crore a year ago, the company is positioning itself for sustained value creation through a combination of higher margin products, a stronger balance sheet and a unified group structure.
