Syngene Shares Dive 10% After Muted Q4 Earnings and Cautious FY26 Outlook

Market Performance

Syngene shares witnessed a sharp decline on Thursday, April 24, 2025. They plummeted by nearly 13% intraday and closed 10% lower after the company announced its Q4 FY25 earnings.

• Closing Price: ₹651.90
• Day’s Low/High: ₹650.00 – ₹695.00
• Volume Traded: Over 1.81 crore shares
• The sharp drop reflected investors’ disappointment over the quarterly performance and the company’s muted outlook for FY26.

Main News

The downturn in Syngene shares was triggered by a 3% year-on-year fall in net profit for Q4 FY25. While total income showed a moderate rise, the cautious forecast for the upcoming fiscal year rattled the market.

“We expect EBITDA margin to moderate from current levels to the mid-twenties and year-on-year decline in profit after tax,” said Syngene’s CFO, Deepak Jain.

Market participants were also spooked by the company’s conservative revenue growth guidance, especially when expectations were running higher.

Company Financials

Revenue

• Q4 FY25: ₹1,037 crore
• Q4 FY24: ₹933 crore
• YoY Growth: ~11.1%
• FY25 Total Income: ₹3,714 crore
• FY24 Total Income: ₹3,579 crore
• Annual Growth: ~3.8%

Net Profits

• Q4 FY25 Net Profit: ₹183 crore
• Q4 FY24 Net Profit: ₹189 crore
• YoY Decline: ~3.2%
• FY25 Net Profit: ₹496 crore
• FY24 Net Profit: ₹510 crore
• Annual Decline: ~2.7%

Company Details

While FY25's financial performance remained tepid, Syngene has been actively pursuing strategic expansion. Notably, the company has acquired a state-of-the-art biologics manufacturing facility in the U.S., aiming to strengthen its footprint in the biologics CDMO (Contract Development and Manufacturing Organization) space.

Despite this long-term growth push, concerns remain over the company’s near-term outlook:

• FY25 Revenue Growth: 4% in INR terms (2% in constant currency)
• FY26 Guidance: Mid-single-digit revenue growth
• Expected slowdown due to inventory destocking in Librela, partially offsetting base business growth in early teens

Summary

The sharp fall in Syngene shares comes amid investor concerns about a weaker-than-expected financial outlook for FY26. Although revenue and income have shown mild improvement, net profit has declined, and guidance remains below market expectations.

With a focus on strengthening its biologics manufacturing capabilities, Syngene remains committed to its long-term strategic vision. However, near-term headwinds continue to weigh on investor sentiment.