Syngene Intl looks to diversify revenue as single biologics programme weighs on performance
Company says influence of one biologics client played through its December quarter numbers, but stressed that performance outside this programme remained stable across manufacturing and research services.
- Jan 23, 2026,
- Updated Jan 23, 2026 3:09 PM IST
Syngene International is looking to broaden its revenue base and deepen long-term partnerships after the impact of a single large commercial biologics programme highlighted the risks of client concentration in complex manufacturing, even as the rest of its research and manufacturing platform continues to record steady progress.
The contract research, development and manufacturing services company said the influence of one biologics client played through its December quarter numbers, but stressed that performance outside this programme remained stable across manufacturing and research services.
“We are clearly seeing the impact of a single large commercial biologics programme playing through the financials,” Peter Bains, Managing Director and CEO of Syngene International told Business Today. “But if we put that to one side and look at the rest of the business, what stands out is the breadth of our diversified platform.”
Revenue from operations declined 3% year-on-year to ₹917 crore in Q3FY26, while EBITDA fell 26 per cent to ₹225 crore, with margins contracting to 24% from 31% a year earlier. Profit after tax before exceptional items dropped 44 per cent year-on-year. The quarter also included a one-time impact of ₹58 crore, net of tax, linked to higher gratuity provisions following changes in labour codes.
For the nine months ended December, revenue rose 3 per cent year-on-year to ₹2,702 crore, indicating resilience in the underlying business despite near-term pressure from the biologics programme. However, profitability remained under strain, with nine-month EBITDA declining 12 per cent to ₹664 crore.
Bains said growth continues across the remainder of Syngene’s manufacturing operations, spanning both small molecules and large molecules, supported by improving capacity utilisation. Research services are also adding new programmes across chemistry, biology, translational and clinical research.
“Across manufacturing and research services, we are seeing growth,” he said. “That reflects the strength of the platform beyond the impact of this one product.”
Syngene is not stepping away from large clients, but is seeking to balance scale with diversification by widening the base of programmes and collaborations.
“Our strategy remains focused on building large and long-term relationships,” Bains said. “At the same time, we are building diversity across platforms and collaborations, including additional large partnerships.”
That approach is reflected in the extension of Syngene’s long-standing partnership with Bristol Myers Squibb through to 2035, giving the collaboration a ten-year forward horizon. The relationship, now in its 27th year, involves around 700 Syngene scientists supporting Bristol Myers Squibb through a dedicated centre and spans work across discovery, development, manufacturing and clinical research.
“The extended horizon allows both partners to plan how this relationship evolves,” Bains said.
On the biologics programme that has weighed on performance, Bains said the impact is still unfolding and is expected to continue over the coming quarters.
“It is an ongoing situation and we expect it to continue to play out,” he said.
Even as pricing pressure remains a factor in new contracts, Syngene is focusing on value addition beyond headline pricing, including differentiated services, faster timelines and risk management support for clients.
“Pricing will always be a component of contracts, but we are also focused on adding value in other dimensions,” Bains said.
The company has continued to invest through the current cycle, prioritising capabilities in peptides, antibody-drug conjugates, oligonucleotides, PROTACs and the broader conjugation space. New and expanded facilities, particularly in chemistry, are beginning to contribute, with further upside expected as utilisation improves across manufacturing sites in India and the US.
Capital expenditure, Bains said, will continue alongside discipline in allocation. “Investment in capabilities, technologies and capacity will continue, as will capital discipline,” he said.
Syngene International is looking to broaden its revenue base and deepen long-term partnerships after the impact of a single large commercial biologics programme highlighted the risks of client concentration in complex manufacturing, even as the rest of its research and manufacturing platform continues to record steady progress.
The contract research, development and manufacturing services company said the influence of one biologics client played through its December quarter numbers, but stressed that performance outside this programme remained stable across manufacturing and research services.
“We are clearly seeing the impact of a single large commercial biologics programme playing through the financials,” Peter Bains, Managing Director and CEO of Syngene International told Business Today. “But if we put that to one side and look at the rest of the business, what stands out is the breadth of our diversified platform.”
Revenue from operations declined 3% year-on-year to ₹917 crore in Q3FY26, while EBITDA fell 26 per cent to ₹225 crore, with margins contracting to 24% from 31% a year earlier. Profit after tax before exceptional items dropped 44 per cent year-on-year. The quarter also included a one-time impact of ₹58 crore, net of tax, linked to higher gratuity provisions following changes in labour codes.
For the nine months ended December, revenue rose 3 per cent year-on-year to ₹2,702 crore, indicating resilience in the underlying business despite near-term pressure from the biologics programme. However, profitability remained under strain, with nine-month EBITDA declining 12 per cent to ₹664 crore.
Bains said growth continues across the remainder of Syngene’s manufacturing operations, spanning both small molecules and large molecules, supported by improving capacity utilisation. Research services are also adding new programmes across chemistry, biology, translational and clinical research.
“Across manufacturing and research services, we are seeing growth,” he said. “That reflects the strength of the platform beyond the impact of this one product.”
Syngene is not stepping away from large clients, but is seeking to balance scale with diversification by widening the base of programmes and collaborations.
“Our strategy remains focused on building large and long-term relationships,” Bains said. “At the same time, we are building diversity across platforms and collaborations, including additional large partnerships.”
That approach is reflected in the extension of Syngene’s long-standing partnership with Bristol Myers Squibb through to 2035, giving the collaboration a ten-year forward horizon. The relationship, now in its 27th year, involves around 700 Syngene scientists supporting Bristol Myers Squibb through a dedicated centre and spans work across discovery, development, manufacturing and clinical research.
“The extended horizon allows both partners to plan how this relationship evolves,” Bains said.
On the biologics programme that has weighed on performance, Bains said the impact is still unfolding and is expected to continue over the coming quarters.
“It is an ongoing situation and we expect it to continue to play out,” he said.
Even as pricing pressure remains a factor in new contracts, Syngene is focusing on value addition beyond headline pricing, including differentiated services, faster timelines and risk management support for clients.
“Pricing will always be a component of contracts, but we are also focused on adding value in other dimensions,” Bains said.
The company has continued to invest through the current cycle, prioritising capabilities in peptides, antibody-drug conjugates, oligonucleotides, PROTACs and the broader conjugation space. New and expanded facilities, particularly in chemistry, are beginning to contribute, with further upside expected as utilisation improves across manufacturing sites in India and the US.
Capital expenditure, Bains said, will continue alongside discipline in allocation. “Investment in capabilities, technologies and capacity will continue, as will capital discipline,” he said.