Syngene Intl. Q1 FY27 Results (NSE: SYNGENE)
Signal: Slipped to loss
The read
Syngene reported a consolidated net loss of ₹21 million for Q1FY27, its first loss in recent history, as revenue fell 17% YoY to ₹6,630 million, weighed by a massive spike in forex losses (₹480 million vs ₹48 million) and exceptional termination costs of ₹135 million; underlying operating profit (pre-exceptional, pre-forex) was extremely thin at ₹35 million, a 96% drop from a year ago, highlighting severe demand and operational headwinds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹663 Cr | -17.1% | -30.9% |
| EBIT | ₹7.6 Cr | -91.6% | |
| Net profit | ₹-2.1 Cr | -102.8% | |
| EPS | ₹-0.05 | -102.7% | |
| EBIT margin | 1.15% |
P&L walk
Consolidated revenue declined 17% YoY to ₹6,630 million, with net loss of ₹21 million due to exceptional termination costs and sharply higher forex losses; underlying operating profit (pre-exceptional) was only ₹35 million, a 96% drop from ₹842 million a year ago.
Segments
Single segment - Contract Research and Manufacturing Services (CRAMS); no geographic or business split provided.
Key positives
- Gross margin improved 200bps YoY to 76.8%, suggesting better project mix or pricing discipline despite revenue decline.
Key concerns
- Revenue down 17% YoY, the steepest decline in recent quarters, with sequential drop of 31%.
- Reported net loss of ₹21 million versus profit of ₹740 million a year ago; even adjusting for exceptional items, pre-exceptional PBT of ₹35 million is negligible.
- Forex loss ballooned to ₹480 million from ₹48 million, a 10x increase, wiping out other income.
- Exceptional termination costs of ₹135 million add to cost burden.
- Employee cost as % of revenue rose to 31.2% from 26.6%, indicating negative operating leverage.
- EBITDA margin collapsed to 15.6% from 23.1%.
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