BIOCON
Mid CapBiocon Limited
Pharma
Biocon Group is a global biopharmaceutical company with a 47+ year legacy, operating in 120+ countries. It focuses on affordable healthcare products and differentiated services, with core businesses in Biosimilars, Generics, and CRDMO Services. The company has successfully integrated Viatris' biosimilar business.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -57% YoY · margin compression · Rev +2% YoY · +8% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,517 Cr | +2.3% | +8.2% |
| EBITDA | ₹1,020 Cr | -5.4% | +22.3% |
| Operating margin | 23.0% | -100 bps | +300 bps |
| PAT | ₹199 Cr | -56.6% | NDF |
| PAT margin | 4.4% | -598 bps | +566 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Biocon Group reports FY26 revenue of $1,924M (₹16,927 Cr), up 7% YoY, driven by Biosimilars (60% of revenue) and CRDMO (22%). Consolidated EBITDA margin declined to 22% from 27% in FY25, while R&D spend remained at 7% of revenue (ex. Research).
The company completed the integration of Viatris' biosimilars business and deleveraged its balance sheet. While revenue grew, EBITDA margins compressed significantly in FY26 across all segments. Management expects new launches and operating leverage to improve margins, but this needs close monitoring.
Revenue by Business Segment (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
New Biosimilar Launches
On-track to launch 5 new biosimilars and key GLP-1s in 2026, including Semaglutide (H2 CY26 US target), bAdalimumab (Oct'25 US), bPegfilgrastim (Apr'26 US), bTrastuzumab (Feb'25 US).
Interchangeable Insulin Launches
Successfully launched interchangeable bGlargine (Sep'25 US) and bAspart (2025 US) in advanced markets.
CRDMO Market Trends
Syngene is well-positioned to capitalize on global industry tailwinds like China+1, IRA, and accelerated outsourcing, with a growing drug pipeline (8% CAGR).
Portfolio Expansion
Comprehensive portfolio with 30+ biosimilars, peptides, and complex generics across oncology, immunology, and diabesity, addressing a $200B+ market opportunity.
mAbs DS Facilities
B3 (mAbs DS facility) commercial from FY23. B5 (mAbs DS facility) commercial from FY25.
Generics Facilities
Hyderabad & Vizag API facilities commercial from FY25. Cranbury OSD facility commercial from FY26. Bangalore Injectable facility qualification in progress.
Insulins DS & DP Capacity
Johor, Malaysia: DP capacity to be completed in FY27; DS capacity to be completed in FY28.
Bayview mAbs Facility
Bayview mAbs facility validation ongoing.
Global Disease Burden Shift
Shift from communicable to non-communicable diseases (NCDs) like Cancer, Diabetes, Musculoskeletal, and Autoimmune diseases, driving demand for therapies.
Outsourcing Acceleration
Big pharma increasingly outsourcing R&D and manufacturing to focus on core innovation, benefiting CRDMO segment.
India Advantage in CRDMO
India offers cost efficiency, technical talent pool, and government funding for biotech parks, supporting CRDMO growth.
Pricing Pressure
Operating leverage benefit in biosimilars offsets pricing pressure in other businesses, indicating pricing challenges.
Inflation Reduction Act (IRA)
Pharma players face margin pressure from policies like IRA, compressing revenue cycles and increasing outsourcing.
EBITDA Margin Compression
Consolidated EBITDA margin declined to 22% in FY26 from 27% in FY25, with all segments showing compression.
Debt Levels
Net Debt/EBITDA at 2.7x in FY26, down from 4.3x in FY23, but still a significant leverage ratio.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Financial results are presented annually (FY26 vs FY25), making year-over-year comparison most appropriate to assess overall business performance and strategic shifts.
Biosimilars Revenue Growth
Biosimilars revenue grew to ₹10,431 Cr in FY26 from ₹9,017 Cr in FY25, a 15.7% YoY increase.
Generics Revenue Growth
Generics revenue increased to ₹3,168 Cr in FY26 from ₹3,017 Cr in FY25, a 5.0% YoY increase.
CRDMO Revenue Growth
CRDMO revenue grew to ₹3,739 Cr in FY26 from ₹3,642 Cr in FY25, a 2.7% YoY increase.
R&D Spend (% of Revenue ex. Syngene)
R&D spend was 7% of revenue (excluding Research) in FY26, consistent with FY25.
Deleveraging and Balance Sheet Strength
Improved debt maturity profile and stronger balance sheet through acquisition refinancing, QIP, and robust EBITDA growth.
Integration Success
Successfully integrated Viatris' biosimilar business in 1 year, among the fastest in the industry.
Future Margin Improvement
New launches, continued operative leverage benefit, and potential synergies from consolidation are expected to help improve margin profile.
Capital Expenditure Outlook
No major new CapEx projects envisaged in FY27 and FY28, with current CapEx largely completed and funded internally.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated EBITDA Margin | 22% in FY26 | Improvement towards previous levels (27% in FY25) driven by new launches and operating leverage. |
| Net Debt/EBITDA | 2.7x in FY26 | Further reduction in leverage, indicating improved financial health and flexibility. |
| Biosimilars Launch Pipeline | 5 new biosimilars and key GLP-1s lined up for 2026. | Timely and successful commercialization of planned launches, especially Semaglutide. |
| CRDMO Growth | 2.7% YoY revenue growth in FY26. | Acceleration in growth, leveraging global tailwinds and expanded capabilities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The full benefit of the debt reduction will be visible from FY '27 with annual savings of around INR 300 crores in interest costs.
"annual savings of around INR300 crores in interest costs"
We expect margin improvement to continue through quarters 3 and 4 following the Goldman Sachs, Kotak, and Edelweiss exits.
"expect this trend to continue through quarters 3 and 4"
Outcome check: OPM moved from 20.0% to average 23.0% (+3.0 pp).
We expect an imminent launch of bDenosumab.
"expect an imminent launch of bDenosumab"
For the Generics business, we expect performance in the second half of the fiscal to strengthen further on the back of new product launches.
"expect performance in the second half of the fiscal to strengthen further"
Outcome check: Revenue YoY averaged 2.3% across 1 later quarter(s).
Trend score and candlestick chart
55NeutralSMA20 +6.5% / mo
Technical chart
BIOCONweekly · 3Y+29.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 57. Wait for confirmation.
- SMA20 rising (~6.1% over last month) — short-term momentum positive.
- RSI(14) at 57 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 5% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.8%.
- Piotroski is strong at 7/9.
- Cash flow contributes 9/10 to the score.
Main drags
- Fair-value margin of safety is negative at -4786.6%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 100% delivered/partly-delivered outcomes on 2 checked claims. It ranks around the 27th percentile of the scored universe and 20th percentile within Pharma. Main check: financial discipline is weak at 28/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 9.5%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 20th pctile, median 70 · Mid: 16th pctile, median 76
190 documents indexed, but claim history is not strong enough yet.
2/4 claims checked · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 5.8%.
- ▸4 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Promoter holding fell 9.5%.
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 3.8%.
- ▸ROE is low at 1.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 170.00
- P/B
- 1.95
- EV/EBITDA
- 15.90
- Market Cap
- 66336.00Cr
Profitability
- ROE
- 1.40%
- ROCE
- 3.75%
- ROA
- 0.58%
- Dividend Y
- 0.12%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- -12.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- -15.00%
Balance Sheet
- Debt/Equity
- 0.45
- Interest Coverage
- 3.49×
- Altman Z
- 2.71
- Book Value
- 210.00
Cash Flow
- FCF Yield
- 5.82%
- FCF Positive Y
- 4/5
- OCF
- 4061.00 Cr
- EPS TTM
- 2.38
Shareholding
- Promoter Hold
- 44.91%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 72%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.