Biocon Reports 51% Drop in Q2 PAT Amid Delayed Shipments and Revenue Pressures

Biocon Ltd has reported a 51 per cent year-on-year decline in its profit after tax (PAT) to ₹41 crore for the second quarter. During the same period, the company's revenue rose 2.2 per cent to ₹4,389 crore.

Revenue growth was led primarily by the generics segment, which recorded a 10 per cent increase to ₹774 crore. Meanwhile, the biosimilars segment grew 3 per cent to reach ₹2,809 crore.

However, the services segment—operated through subsidiary Syngene International—faced headwinds, with revenue declining 9 per cent year-on-year to ₹833 crore. Although the segment saw a sequential recovery, its overall performance weighed on the company's growth.

Explaining the pressure on quarterly performance, Shreehas Tambe, CEO and Managing Director of Biocon, stated that shipments worth approximately $20 million failed to reach customers by the end of September and could not be recognized as Q2 revenue. These delayed shipments accounted for about 5 per cent of the company's biopharma revenues.

“Most of the costs have already flowed through, and those have affected the reported margins. There is no underlying business challenge. These products were subsequently sold in October itself, as they reached customers after September,” Tambe said. He attributed the shipment delays to ongoing geopolitical developments.

Despite the Q2 margin impact, executive leadership expressed confidence in a stronger second half of FY27. Tambe outlined four key growth drivers for the upcoming quarters: the launch of biosimilar pertuzumab, a $400-million product development partnership in Brazil, the upcoming European launch of the product, and growing insulin demand in the US market.

Highlighting regulatory milestones, Executive Chairperson Kiran Mazumdar-Shaw noted that Biocon achieved industry firsts in biosimilars. The company's pertuzumab became the first monoclonal antibody biosimilar recommended under the European Medicines Agency’s new tailored clinical development pathway.

Additionally, Biocon secured a global settlement with Genentech for Pebrilzo (its biosimilar pertuzumab), establishing early licensed launch dates across Europe, the UK, the US, and emerging markets. The company also finalized a 10-year pertuzumab product development partnership in Brazil valued at around $400 million.

“Together with the upcoming European launch of pertuzumab, expanded insulin manufacturing capacity in Malaysia to support growing US demand, and the strong early momentum of Yesafili and Yesintek in the US, we are well positioned for growth in the second half of FY27,” Tambe added.

"This quarterly result highlights how external factors like geopolitical developments and logistics delays can temporarily impact financial reporting, even when underlying business demand remains intact. For growing enterprises, it underscores the importance of supply chain resilience and multi-market diversification. Biocon's strategic partnerships and upcoming product launches provide a clear roadmap for recovery, showing that temporary revenue shifts do not necessarily alter long-term market potential." — Dr. Shishir Gupta, Founder & CEO, StartupLanes