Biocon profit drops 57.30% as margin slips and other income fades
Revenue rose 2.17% year on year, but faster expense growth, higher depreciation and lower other income cut consolidated net profit to Rs 56.7 cr.
Filed 04 Nov 2026, 13:19 IST · Biocon Ltd (BIOCON)
Key takeaways
- Consolidated net profit fell 57.30% year on year to Rs 56.7 cr as depreciation rose 19.20% and other income declined 65.72%.
- Operating margin narrowed 0.52 percentage points year on year to 18.93% because expenses grew 2.83%, faster than revenue at 2.17%.
- Management said Biosimilars should have a stronger second half, supported by launch momentum and additional insulin capacity.
Price around the results
Profit fell despite modest revenue growth
Biocon's consolidated revenue rose 2.17% year on year and 1.22% sequentially, but operating profit declined 0.54% and 1.92%, respectively. Net profit fell 57.30% year on year and 58.55% sequentially. The pressure below operating profit was compounded by a 19.20% year-on-year rise in depreciation and a 12.62% sequential increase in interest.
Costs widened the margin gap
Expenses grew 2.83% year on year against 2.17% revenue growth, narrowing operating margin by 0.52 percentage points; sequentially, costs rose 1.98% against 1.22% revenue growth, cutting margin by 0.61 percentage points. Operating margin has now declined for a second straight quarter, from 22.59% in Q4FY26 to 19.54% in Q1FY27 and 18.93% in Q2FY27. It was 2.47 percentage points below the 21.40% median for 69 reported Healthcare peers.
Profit quality remains weak
Other income contributed 50.73% of pre-tax profit, making the Rs 54.8 cr pre-tax result particularly sensitive to non-operating items. Other income fell 65.72% year on year and 32.20% sequentially. The negative tax rate of -3.47% supported net profit, so the Rs 56.7 cr outcome was not driven by operating improvement.
Management points to a stronger second half
Management said it expects a stronger second half, supported by additional insulin capacity and continued regulatory and commercial progress. It also said Biosimilars should benefit from launch momentum and additional insulin capacity, while Generics profitability should continue improving and Services should recover progressively. During the quarter, management highlighted an encouraging US launch for Yesafili, 13 launches across APAC, Latin America and AFMET-CIS, and approximately 20 tender awards across four European markets.
Past result-day moves have been evenly split
Across the last eight result reactions, the stock rose four times and fell four times. The median absolute move was 1.55%, with individual recorded moves ranging from -5.72% to +5.40%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,389 cr | ₹4,336 cr | +1.22% | +2.17% |
| Other income | ₹28 cr | ₹41 cr | -32.20% | -65.72% |
| Expenses | ₹3,558 cr | ₹3,489 cr | +1.98% | +2.83% |
| Operating profit | ₹831 cr | ₹847 cr | -1.92% | -0.54% |
| Operating margin (%) | 18.93% | 19.54% | — | — |
| Interest | ₹240 cr | ₹213 cr | +12.62% | -11.79% |
| Depreciation | ₹564 cr | ₹547 cr | +3.00% | +19.20% |
| Profit before tax | ₹55 cr | ₹128 cr | -57.05% | -68.01% |
| Tax | ₹-2 cr | ₹-9 cr | +79.35% | — |
| Net profit | ₹57 cr | ₹137 cr | -58.55% | -57.30% |
| EPS (₹) | ₹0.25 | ₹0.87 | -71.26% | -62.12% |
Operating margin of 18.93% compares with a Healthcare sector median of 21.40% across 69 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Yesafili delivered an encouraging US launch during the quarter.
Guidance & outlook
- Biocon expects a stronger second half, supported by additional insulin capacity and continued regulatory and commercial progress.
- The Biosimilars segment is expected to have a much stronger second half, supported by launch momentum and additional insulin capacity.
- Biocon expects a stronger second half, with continued Generics profitability improvement and progressive Services recovery.
Expansion
- Additional insulin capacity is planned to support the stronger second half.
New orders
- Yesafili's US launch was supported by new contracts and important payor wins.
- Approximately 20 tender awards across four European markets strengthened market access.
New products
- Biocon launched 13 products across APAC, Latin America and AFMET-CIS.
New initiatives
- The Biomm partnership supports Biocon's semaglutide strategy in Brazil and extends the GLP-1 opportunity into emerging markets.
Competition
- Ogivri and Fulphila maintained leadership positions in North America.
What to watch
- Whether operating margin improves from 18.93% after two consecutive quarterly declines.
- Whether interest expense moderates after rising 12.62% sequentially.
- Whether net profit recovers from Rs 56.7 cr as management's stronger-second-half commentary is tested.