Message from ourChief Financial Officer
The fiscal year marked a continuation of Syngene's multi-year investment cycle at a measured pace. Capital deployment remained focused on strengthening capabilities across research, development, and manufacturing, along with enabling infrastructure.
Dear Shareholders,
The fiscal year was shaped by a mixed operating environment, requiring a careful balance between sustaining performance and continuing to invest for the future. While overall growth was moderated by the impact of a specific biologics program, the broader business remained steady, supported by continued demand in Research Services and stable engagement across Development and Manufacturing. Against this backdrop, our focus remained on maintaining stability while positioning the business for the next phase of growth. In this context, the theme of this year's Annual Report, Science for People. Advancing Innovation is reflected in how we have directed capital toward capabilities that support scientific advancement while delivering sustainable financial outcomes.
Performance and Margins
For the fiscal year, Syngene reported revenue from operations of Rs 37,387 Mn, up 3% year-on-year, with an Operating EBITDA margin of 25% and profit after tax before exceptional items of Rs 3,799 Mn. This performance reflects steady underlying demand alongside the impact of business mix and continued investment in capability build-out. Margins reflected the planned absorption of costs associated with new capacity, while cash flows remained healthy, supported by stable operations and disciplined working capital management.
During the fiscal year, the Company recognized exceptional items amounting to a net loss of Rs 632 Mn, primarily relating to gratuity re-measurement following the notification of new Labor Codes and termination benefits extended to employees in accordance with the approved policy. After accounting for exceptional items, profit after tax for FY26 stood at Rs 3,167 Mn.
Rs
37,387 Mn
Revenue from operations
in FY26
Cost and Investment Dynamics
Margins were influenced by capacity additions, facility ramp-up, and continued investment in talent and capabilities. Employee costs increased by approximately 14%, reflecting organizational expansion and capability strengthening, while direct costs, including power and utilities, rose by about 6% with manufacturing scale-up. Depreciation increased in line with recent capital additions, particularly in biologics manufacturing.
These cost increases were partly offset by targeted actions to optimize controllable expenses. Overall, this reflects a transition phase as the business absorbs recent investments and progresses toward improved utilization, productivity, and operating leverage.
Investments included expansion of scientific platforms, biologics manufacturing capacity, and emerging modalities such as peptides and antibody-drug conjugates.
Rs
3,799 Mn
Profit After Tax* in FY26
Capital Allocation and Capability Build-out
The fiscal year marked a continuation of Syngene's multi-year investment cycle at a measured pace. Capital deployment remained focused on strengthening capabilities across research, development, and manufacturing, along with enabling infrastructure.
Investments included expansion of scientific platforms, biologics manufacturing capacity, and emerging modalities such as peptides and antibody-drug conjugates. Progress also continued at the biologics facility in Bayview, USA, alongside expansion in India. In parallel, investments in digitization and automation are improving speed, consistency, and scalability.
Looking ahead, the emphasis will shift from capacity creation to improving asset utilization, strengthening productivity, and enhancing returns on invested capital.
Balance Sheet and Cash Position
A key highlight of the fiscal year was continued cash generation. Syngene generated Rs 5,207 Mn in net cash during the year and closed with a net cash position of approximately Rs 18,003 Mn, after funding capital expenditure.
This strong balance sheet provides flexibility to support growth priorities while maintaining resilience in a variable operating environment. It reflects a continued focus on liquidity, balance sheet strength, and prudent financial management.
Operational Efficiency
Alongside investment and scale-up, the Company advanced initiatives in digitization, automation, and process optimization. These efforts are strengthening productivity, improving turnaround times, and supporting scalable growth as the business transitions toward more efficient utilization of its expanded asset base.
Outlook
The near-term environment is expected to remain measured, with the impact of the biologics program continuing into the first half of the next fiscal year. At the same time, a healthy pipeline and sustained customer engagement provide confidence that recent investments will increasingly translate into growth and operating leverage over time.
The year reflects a period of transition, balancing near-term pressures with continued investment in capabilities for long-term growth. A strong balance sheet, diversified model, and evolving operational base provide a stable foundation for the future. Our focus will remain on disciplined execution by balancing growth investments with cost management, maintaining financial resilience, and aligning with the Company's strategic priorities. As we look ahead, we will continue to support Science for People. Advancing Innovation through prudent capital allocation and long-term financial stewardship.
I thank our shareholders for their continued trust, our customers for their partnership, and our employees for their commitment and hard work.
Deepak Jain
Chief Financial Officer
