Syngene swings to a quarterly loss as a big client pulls back
Syngene International slipped to a rare quarterly net loss in the June quarter after a major biologics client cut back, shares fell nearly 9%
and Mazumdar-Shaw steps in as executive chair
Syngene International, the Biocon-controlled contract research and manufacturing firm, slipped to a rare quarterly net loss in the June quarter after a major biologics client cut back sharply, and its shares fell nearly 9% to Rs 377.50, a 52-week low.
The result and a leadership change mark a reset at one of India's largest CRDMOs. Promoter Kiran Mazumdar-Shaw has moved into an executive chairperson role and called FY27 "a year of transition" and "course correction," admitting the company had "drifted towards a larger share of commoditized research services" and leaned too heavily on a single customer, a candid diagnosis that frames the turnaround now under way.
Revenue fell 16% to Rs 736 crore and operating EBITDA dropped 56% to Rs 91 crore, cutting the margin to about 12% from 24%, and the company posted a net loss of Rs 9 crore against a Rs 87 crore profit a year earlier. Management attributed the quarter to the loss of contribution from Zoetis, a major biologics client, plus a roughly Rs 48 crore forex hedge loss and Rs 10 crore in employee termination costs. Siddharth Mittal, the former Biocon MD and CEO, took over as Syngene's MD and CEO on July 1, succeeding Peter Bains, and independent director Kush Parmar stepped down, with Vijaya Chandru and ex-Biocon chief Arun Chandavarkar joining the board.
Syngene cut its full-year outlook to a low-single-digit revenue decline, from the flat growth it had guided in March, while holding its mid-20s EBITDA-margin target and betting on a pivot to CDMO and AI-led services, including its Syn.AI platform, for a second-half recovery.
