Biocon Ltd (BOM:532523) Q3 2026 Earnings Call Highlights: Strong Revenue Growth Amidst …

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Fri, February 13, 2026 at 8:00 PM GMT+9 4 min read

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**Operating Revenue:** INR4,173 crore, up 9% year on year.

**Biosimilars Revenue:** INR2,497 crore, 9% year-on-year increase.

**Generics Revenue:** INR851 crore, 24% year-on-year increase.

**CRDMO Revenue:** INR917 crore, down 3% year on year.

**Core EBITDA:** INR1,221 crore, up 21% year on year, with a margin of 29%.

**EBITDA:** INR951 crore, up 21% year on year, with a margin of 22%.

**Profit Before Tax (excluding exceptionals):** INR226 crore, up 64% year on year.

**Reported Net Profit:** INR144 crore for the quarter.

**R&D Investment:** INR249 crore, 8% of revenues excluding Syngene.

**Biosimilars EBITDA:** INR700 crore, 44% year-on-year growth, with a margin of 28%.

**Generics EBITDA:** INR47 crore, improvement over last year and previous quarter.

**CRDMO Nine Months Revenue:** INR2,702 crore, up 3% year on year.

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Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Biocon Ltd (BOM:532523) achieved a 9% year-on-year growth in operating revenue for Q3 FY26, driven by strong performance in biosimilars and generics.

The company successfully launched several new biosimilar products, including trastuzumab subcu, nivolumab, and pembrolizumab, enhancing its oncology portfolio.

Biocon Ltd (BOM:532523) completed the integration of Biocon Biologics, creating a unified platform that combines biosimilars and specialty generics, which is expected to drive operational synergies.

The company has significantly reduced its debt through two successive QIPs, raising nearly $1 billion, which has improved its financial flexibility and investor sentiment.

Biocon Ltd (BOM:532523) received credit rating upgrades from S&P and Fitch, reflecting the company's improved financial position and strong earnings momentum.

Negative Points

The CRDMO segment faced challenges, with a 3% year-on-year decline in revenue, impacting overall growth.

Despite the strong performance in biosimilars, the company refrained from providing specific future growth guidance, creating uncertainty about long-term projections.

The generics division's EBITDA declined by 32% for the nine months of FY26, attributed to higher costs related to new facilities.

The company is facing regulatory challenges in Canada for its GLP-1 products, which could delay market entry and impact growth in that region.

Biocon Ltd (BOM:532523) has a significant amount of debt remaining, with a net debt position between $1.1 billion to $1.2 billion, which could affect future financial flexibility.

 






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Q & A Highlights

Q: Can you provide an update on the biosimilar business, specifically regarding the production and quality upgrades? A: Shreehas Tambe, CEO of Biocon Biologics, explained that the upgrades were planned to meet increased demand across the US and Europe. The upgrades have been completed, allowing Biocon to prioritize high-margin markets, which has resulted in higher-than-expected margins. The company expects to maintain mid-20s margins for the full year.

Q: What is the outlook for CapEx in fiscal '26 and '27, and will it moderate in the coming years? A: Kedar Upadhye, CFO of Biocon Biologics, stated that CapEx is expected to moderate from over $275 million annually to less than $225 million. Most investments are behind, with only maintenance CapEx anticipated moving forward.

Q: Can you explain the rationale behind acquiring full global rights for Hulio, adalimumab? A: Shreehas Tambe noted that Hulio has been a successful franchise in Europe, generating over $200 million annually. The acquisition allows Biocon to be a fully integrated player, enhancing control over the product and aligning with their strategy to expand in the oncoimmunology space.

Q: How should we view the growth trajectory for the biosimilar business, given recent launches? A: Shreehas Tambe indicated that while specific guidance is not provided, the future looks promising with several new product launches and growing demand across geographies. The company expects continued strong growth, although some erosion in legacy products is anticipated.

Q: What is the current net debt position, and what are the plans for debt reduction? A: Kedar Upadhye reported that net debt is between $1.1 billion and $1.2 billion, with all structured debt retired. The company has significantly reduced finance costs and plans to continue reducing debt through organic cash flow generation, although a $500 million reduction in one year is unlikely.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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