Biocon Q1 profit jumps over 4-fold to ₹141 crore as lower finance costs, biopharma growth lift earnings

Biocon Ltd reported a more than four-fold jump in consolidated net profit for the first quarter of FY27, aided by strong growth in its higher-margin biopharmaceuticals business, lower finance costs and an improved business mix. The biopharmaceutical company posted a net profit of ₹141 crore for the quarter ended June 30, compared with ₹31.4 crore a year earlier, while revenue from operations rose 10% year-on-year to ₹4,336 crore.

Operating performance remained resilient, with EBITDA rising 10.6% to ₹847.2 crore from ₹766.1 crore a year ago, while EBITDA margin improved marginally to 19.54% from 19.43%.

Biopharma offsets services weakness

The sharp jump in profitability came despite modest revenue growth, as the company's fast-growing biopharma business continued to outpace its services segment. Biopharma revenue rose 17% year-on-year to ₹3,615 crore, driven by a 16% increase in biosimilars revenue to ₹2,855 crore and a 21% rise in generics revenue to ₹760 crore. In contrast, services revenue declined 16% to ₹736 crore amid continued challenges in the business.

The quarter also benefited from lower borrowing costs, with finance expenses declining 23% to ₹213 crore from ₹277 crore following balance sheet optimisation initiatives. Net profit before exceptional items climbed to ₹145 crore from ₹42 crore in the year-ago quarter, stressing the improvement in the company's underlying earnings.

"Biocon has entered FY27 with a clear focus on translating our strategic investments into sustainable growth and long-term value creation. A favourable policy environment for biosimilars together with our expanded manufacturing capabilities in the U.S. reinforce our confidence in the long-term opportunities across North America, our biggest market. We also remain confident that the investments in new capabilities at our research services business will support its next phase of growth," executive chairperson Kiran Mazumdar-Shaw said.

New launches strengthen outlook

During the quarter, Biocon strengthened its biosimilars portfolio by launching Bosaya and Aukelso (biosimilar Denosumab), Yesafili (biosimilar Aflibercept) and generic Liraglutide in the US. The company also received approval from the European Medicines Agency for its insulin drug product fill-finish facility in Malaysia, expanding manufacturing capacity for global markets.

Chief executive officer and managing director Shreehas Tambe said the company expects growth momentum to accelerate through the rest of the financial year.

"Biocon delivered a resilient performance in Q1FY27, reporting consolidated revenue from operations growth of 10% year-on-year to Rs 4,336 crore and EBITDA of Rs 902 crore. This reflects the strength of our diversified portfolio and disciplined commercial execution. Our focus on balance sheet optimization reduced interest costs by 23% year-on-year. We expect growth momentum to accelerate through the year, driving a stronger second-half performance," he said.

Growth in North America was driven by recently launched biosimilars and generic products, while the company also expanded its presence across Europe and emerging markets through fresh product launches and regulatory approvals. Looking ahead, management expects its expanded manufacturing capabilities, improving balance sheet and continued biosimilar launches to support growth through FY27.

Biocon shares ended Wednesday's session 0.76% higher at ₹425.20 apiece on the NSE. The stock has gained nearly 15% over the past year, underperforming the Nifty Pharma index, which has advanced about 21% during the same period.