Syngene Intl. Q2 FY27 Results (NSE: SYNGENE)
Signal: Revenue declined
The read
The quarter is a sequential recovery rather than a clean turnaround: consolidated revenue rebounded to ₹8,327 million from ₹7,360 million and EBITDA margin improved to 17.7% from 12.3%, but YoY revenue still fell 8.6%, margin remained 421bps below last year and PAT fell 52.0% to ₹322 million. The dominant drag was the ₹614 million foreign-exchange loss, while the ₹67 million termination-benefit charge added an exceptional burden.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹832.7 Cr | -8.6% | +13.1% |
| Net profit | ₹32.2 Cr | -52.0% | |
| EPS | ₹0.8 | -52.1% | |
| EBIT margin | 17.7% |
P&L walk
Revenue declined 8.6% YoY to ₹8,327 million, gross margin expanded 233bps to 76.1% on lower raw-material intensity, but EBITDA margin fell 421bps to 17.7% because foreign-exchange loss rose to ₹614 million; PAT fell 52.0% to ₹322 million after ₹67 million of termination benefits.
Key positives
- Gross margin expanded 233bps YoY to 76.1% as chemicals, reagents and consumables declined to 24.4% of revenue from 25.0%; the filing does not identify the cause, so persistence remains unconfirmed.
- Consolidated EBITDA margin recovered 536bps sequentially to 17.7% from 12.3%, reversing part of Q1FY27's compression.
- PAT returned to ₹322 million from a ₹90 million Q1FY27 loss, while finance costs declined 24.2% YoY to ₹100 million.
- EPS tracked PAT closely at ₹0.80 versus ₹1.67 YoY, with the PAT-to-EPS cross-check clean.
Key concerns
- Revenue declined 8.6% YoY to ₹8,327 million after 2.2% YoY growth in Q2FY26, extending the recent slowdown in the business trajectory.
- EBITDA margin remained 421bps below last year at 17.7%, with foreign-exchange loss increasing ₹496 million YoY to ₹614 million.
- Operating cash flow was negative at ₹1,432 million in H1FY27 despite H1 profit of ₹232 million, while consolidated current liabilities declined by ₹3,231 million from 31 March 2026.
- CWIP increased ₹1,002 million to ₹11,406 million while PPE declined ₹979 million, leaving capex monetisation and commissioning timing as key execution variables.
Research and educational content only. Not investment advice.