Biocon (BIOCON) Q3 24/25 earnings summary

Executive summary

• Achieved 10% year-on-year operating revenue growth on a like-for-like basis, driven by biosimilars and research services, with generics showing a marginal decline but sequential recovery.

• Successful FDA audits at multiple sites, key product approvals, and completion of all deferred milestones under the Viatris acquisition agreement.

• Board approved unaudited standalone and consolidated results for the quarter and nine months ended December 31, 2024.

• Sustained growth in Biosimilars, return to growth in Research Services, and marginal decline in Generics; sequential growth across all segments.

• Amendments to the Code of Fair Disclosure of Unpublished Price Sensitive Information were approved.

Financial highlights

• Revenue from operations reached INR 3,821 crore, up 10% year-on-year and 6% sequentially (like-for-like); consolidated revenue for Q3 FY25 was Rs. 38,214 million, up from Q2 but down from Q3 FY24.

• Group core EBITDA was INR 1,007 crore (up 4% YoY), with a 26% margin; reported EBITDA at INR 787 crore (20% margin, up 16% YoY like-for-like).

• Consolidated net profit for Q3 FY25 was Rs. 811 million, compared to Rs. 271 million in Q2 FY25 and Rs. 7,533 million in Q3 FY24.

• Standalone net profit for Q3 FY25 was Rs. 5,758 million, significantly higher than Rs. 49 million in Q2 FY25, mainly due to exceptional gains.

• R&D investment was INR 199 crore, 7% of revenues (excluding Syngene), down 40% year-over-year.

Outlook and guidance

• Expect continued sequential revenue growth in Q4 and into next fiscal, driven by new product launches in the U.K., EU, and U.S.

• Generics business anticipated to return to mid-teens growth in FY2026, led by Liraglutide and other launches.

• Biosimilars segment targets sustainable EBITDA margins of 22–25% with five U.S. launches and three global launches in the coming year.

• Board approved purchase of additional equity in a subsidiary for Rs. 5,550 million, increasing holding by 1.5%.

• Recent refinancing of USD 1.1 billion debt enhances liquidity and financial flexibility.