This article first appeared on GuruFocus .
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Operating Revenue Growth:10% year-on-year growth in operating revenue, led by biosimilars.
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Biosimilars Revenue:INR2,756 crores for Q4 FY26, a 12% year-on-year increase.
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Biosimilars EBITDA:INR720 crores for Q4 FY26, a 33% year-on-year growth, with a margin of 26%.
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Generics Revenue:INR847 crores for Q4 FY26, a 13% year-on-year growth, excluding onetime generic lenalidomide.
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Generics EBITDA:INR75 crores for Q4 FY26, with an EBITDA margin of 8%.
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CRDMO Revenue:INR1,037 crores for Q4 FY26, a 2% year-on-year increase.
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EBITDA Margin:23% for Q4 FY26, adjusted up 29% year-on-year.
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Net Profit:INR179 crores for Q4 FY26 before exceptionals.
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FY26 Revenue and EBITDA Growth:13% and 25% growth, respectively, adjusted for generic lenalidomide.
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R&D Investments:7% of biosimilars revenue for Q4 FY26.
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Release Date: May 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Biocon Ltd ( BOM:532523 ) achieved a 10% year-on-year growth in operating revenue, led by biosimilars, excluding one-time benefits from the previous year.
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The company successfully integrated its biosimilars and generics business within 100 days, enhancing operational efficiency and creating a unified biopharma entity.
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Biosimilars revenue grew by 12% year-on-year, with a 33% increase in EBITDA, reflecting improved revenue mix and operating leverage.
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Biocon Ltd ( BOM:532523 ) received important product approvals in biosimilars and generics, expanding its presence in regulated markets such as the US and Canada.
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The company made significant progress in deleveraging, reducing net debt from over $1.5 billion to $1.1 billion, and achieved interest cost savings that will support future profitability.
Negative Points
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The external environment remained challenging due to geopolitical uncertainties impacting supply chains, logistics, and energy costs.
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Despite new product launches, there was no material improvement in biosimilars revenue from the second to the fourth quarter, indicating potential stabilization issues.
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The generics segment reported an EBITDA margin of only 8%, although it showed improvement over the previous quarter.
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The CDMO business experienced only a 2% year-on-year growth, with specific impacts from a single large molecule biologics client affecting overall performance.
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Biocon Ltd ( BOM:532523 ) faces potential challenges from new entrants in the biosimilars market, which could impact its market share and pricing strategies.
Q & A Highlights
Q: How should we think about biosimilars revenue for FY27 and FY28, considering recent launches and disruptions? A: Shreehas Tambe, CEO and Managing Director, explained that there was a sequential growth of 12% in biosimilars revenue from Q3 to Q4. The company expects further ramp-up in FY27 and FY28, driven by new product launches and increased capacity. The full stabilization of disruptions from Q3 is expected to be completed soon.
Q: How will Biocon approach deleveraging in fiscal '27? A: Kedar Upadhye, CFO, stated that all free cash flow generation will be used for deleveraging. The company has reduced net debt from over $1.5 billion in March '25 to $1.1 billion now. Interest cost savings are also being realized, with a reduction of approximately INR70-75 crores per quarter.
Q: Can you provide a split of FY26 biosimilars sales between developed markets and the rest of the world? A: Shreehas Tambe noted that the distribution is roughly 75% in advanced markets (North America and Europe) and 25% in emerging markets. The company is optimistic about the launch of biosimilar aflibercept in the US and expects significant interest due to the proven comfort with biosimilars in the ophthalmology space.
Q: What are Biocon's investment priorities for FY27, given the completion of major CapEx investments? A: Shreehas Tambe emphasized that the focus will be on disciplined execution, driving growth, and expanding margins. With major investments behind them, the company aims to consolidate its business and improve operating leverage without significant new CapEx.
Q: How does the FDA's draft guidelines on reducing R&D costs for biosimilars impact Biocon? A: Shreehas Tambe explained that the guidelines reduce development costs by 50% and accelerate product development by three to four years. While it lowers the entry barrier, Biocon's proven track record in CMC comparability and analytical characterization gives it an advantage in maintaining its market position.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
