Syngene's margin rebounds QoQ, but profit remains below last year
Revenue grew 1.82% year on year as expenses rose 8.70%; the stock's 8.21% results-day gain was larger than its typical move.
Filed 29 Apr 2026, 18:35 IST · after market close · Syngene International Ltd (SYNGENE)
Key takeaways
- Syngene's consolidated operating margin rebounded 6.46 percentage points sequentially to 29.27%, but remained 4.48 percentage points below Q4FY25.
- Year-on-year revenue grew 1.82% while expenses rose 8.70%, driving an 11.70% decline in operating profit and a 19.31% fall in net profit.
- The stock gained 8.21% on results day, above its 5.50% median absolute post-results move despite rising after only 3 of its last 8 results.
Price around the results
Revenue momentum returned, but the annual comparison stayed weak
Consolidated revenue rose 13.02% sequentially, while expenses increased only 3.56%, lifting operating profit 45.03% from the preceding quarter. The comparison with Q4FY25 was less favourable: revenue grew just 1.82%, against 8.70% expense growth, leaving operating profit down 11.70%. Syngene's presentation said it expanded laboratory capacity in Bangalore and Hyderabad, entered Mangalore for commercial API manufacturing, and acquired a multi-modal biologics facility from Stelis Biopharma.
Margin recovered from the Q3 trough but stayed below Q4FY25
Operating margin rose 6.46 percentage points sequentially because revenue growth outpaced expense growth, but declined 4.48 percentage points year on year as costs grew faster than revenue. The quarter marked a recovery from the 22.81% margin in Q3FY26, after margins had fallen from 33.75% in Q4FY25 to 23.60% in Q1FY26 and 21.91% in Q2FY26. Interest expense fell 23.90% year on year, but that was not enough to offset the operating decline.
Sequential profit was helped by the tax-rate reversal
Net profit rose 886.00% sequentially, but the comparison was against a Q3FY26 profit of Rs 15.0 cr, which included negative other income of Rs -55.2 cr. The tax rate fell 22.64 percentage points sequentially to 24.54%, helping the recovery in net profit; year on year, the tax rate was broadly stable, up 0.76 percentage points. Other income accounted for 8.27% of pre-tax profit, so it supported earnings but was not the main driver.
The business remains above the reported healthcare peer median
Syngene's 29.27% operating margin was 5.89 percentage points above the 23.38% median for the 48 healthcare peers that had reported the same quarter. The presentation said 16 of India's top 20 pharmaceutical companies are clients and described Syngene as one of the country's largest integrated CRDMO players. These company statements provide context for its positioning, while the quarterly margin still remains below the year-ago level.
Results-day gain was unusual against Syngene's recent history
The stock rose 8.21% on the first trading day after the results and was up 10.46% on the following day. That first-day move exceeded the 5.50% median absolute move after its last eight results, during which the stock rose after three and fell after five. The move was therefore positive and larger than usual for this stock's recent results history.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,037 cr | ₹917 cr | +13.02% | +1.82% |
| Other income | ₹16 cr | ₹-55 cr | — | -14.29% |
| Expenses | ₹733 cr | ₹708 cr | +3.56% | +8.70% |
| Operating profit | ₹303 cr | ₹209 cr | +45.03% | -11.70% |
| Operating margin (%) | 29.27% | 22.81% | — | — |
| Interest | ₹12 cr | ₹12 cr | +1.68% | -23.90% |
| Depreciation | ₹112 cr | ₹114 cr | -1.93% | +5.09% |
| Profit before tax | ₹196 cr | ₹28 cr | +590.14% | -18.50% |
| Tax | ₹48 cr | ₹13 cr | +258.96% | -15.91% |
| Net profit | ₹148 cr | ₹15 cr | +886.00% | -19.31% |
| EPS (₹) | ₹3.68 | ₹0.37 | +894.59% | -19.30% |
Operating margin of 29.27% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.21% | +8.96% |
| Next session | +10.46% | — |
| 5 sessions | +6.00% | +6.01% |
| 15 sessions | +6.87% | — |
| 30 sessions | +4.94% | — |
Volume on the results session was 54.12× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Syngene expanded laboratory capacity in Bangalore and Hyderabad and expanded into Mangalore for commercial API manufacturing.
- Syngene acquired a multi-modal biologics facility from Stelis Biopharma Ltd.
Competition
- Syngene describes itself as one of the largest integrated CRDMO players in India.
- Sixteen of the top 20 pharmaceutical companies are Syngene clients.
What to watch
- Whether operating margin holds above 29.27% after the sequential rebound.
- Whether year-on-year expense growth moderates from 8.70%.
- Whether revenue growth sustains momentum after the 13.02% sequential increase.