Syngene International Q3 FY26 Results: Revenue Softens, Margins Under Pressure

### Syngene International Q3 FY26 Results: Client-Specific Impact Weighs on Margins Syngene International reported a **mixed set of results for Q3 FY26**, with revenue softness and margin pressure reflecting client-specific challenges, even as long-term fundamentals remain intact. For the quarter ended December 31, 2025, **revenue from operations declined 3% year-on-year to ₹917 crore**. Operating performance weakened, with **EBITDA falling 26% YoY to ₹225 crore** and EBITDA margin contracting to **24% from 31%** last year. **Profit after tax (before exceptional items)** dropped **44% YoY to ₹73 crore**, mainly due to lower operating leverage, adverse foreign exchange movement, and higher cost absorption. Management highlighted that the subdued performance was largely driven by the **ongoing impact of a single product from a large biologics client**. Excluding this factor, the underlying business showed stability, with Research Services continuing to add new programs. On a **nine-month basis**, revenue grew **3% YoY to ₹2,702 crore**, indicating steady demand across services. However, margins remained under pressure, with EBITDA and PAT declining due to cost inflation and lower utilisation. Strategically, the quarter delivered key positives. **Bristol Myers Squibb extended its partnership with Syngene through 2035**, providing long-term revenue visibility. The company also commissioned a new **liquid-filled hard gelatin capsule facility** and expanded advanced chemistry capabilities, strengthening its manufacturing and development platform. While near-term earnings remain subdued, Syngene’s **strong balance sheet and long-term contracts** support a gradual recovery outlook. *Disclaimer: This article is for informational purposes only and does not constitute investment advice.*