Biocon has shared an investor presentation detailing the strategic integration of Biocon Limited and Biocon Biologics, aiming to unlock significant shareholder value by combining Generics and Biosimilars. The company highlighted a strong financial journey, culminating in a Net Debt/EBITDA of 2.8x (Proforma 9M FY26) following deleveraging activities. Q3 FY26 results show Revenue from Operations up 9% YoY to ₹4,173 Cr, with Core EBITDA growing 21% YoY to ₹1,221 Cr.
Biocon Integrates Businesses for Future Growth
Biocon is proceeding with the integration of Biocon Limited and Biocon Biologics to combine Generics (API, GLPs, OSDs, Injectables) and Biosimilars (mAbs & Insulins) into a single entity. The future structure will offer a differentiated portfolio including Biosimilars, Insulins, Peptides, and Complex Generics. This consolidation is expected to drive value maximization through a simplified corporate structure, the removal of the HoldCo discount, and cross-leveraging of commercial and manufacturing infrastructure.
Financial Journey: Deleveraging and Strength
The company detailed a multi-step financial journey aimed at strengthening its balance sheet. Key milestones include the $3B+ acquisition of Viatris’ Biosimilars Business, subsequent refinancing through an $800M Bond, and a QIP of ₹4,500 Cr to redeem structured instruments. These actions have resulted in a substantial reduction in Net Debt/EBITDA from 4.3x (FY23) to a proforma 2.8x (9M FY26), alongside projected annual interest cost savings of ₹300 Cr.
Q3 FY26 Financial Performance Highlights
The Group delivered robust financials for Q3 FY26:
- Revenue from Operations grew 9% YoY to ₹4,173 Cr.
- Core EBITDA increased 21% YoY to ₹1,221 Cr, achieving a 29% margin.
- EBITDA stood at ₹951 Cr (22% margin), up 21% YoY.
- Net Profit (Reported) saw a massive 475% YoY jump to ₹144 Cr.
Segment Performance (Q3 FY26)
Biocon Biologics (Biosimilars) saw Segment Revenue of ₹2,497 Cr (9% YoY growth), with Core EBITDA up 37% YoY to ₹895 Cr (28% EBITDA margin).
Biocon Generics reported Segment Revenue of ₹851 Cr (24% YoY growth), driven by EU GLP-1 launches, though Core EBITDA declined slightly by 3% YoY to ₹99 Cr due to higher costs from new facilities.
CRDMO (Syngene) Segment Revenue was ₹917 Cr (down 3% YoY), impacted by temporary challenges at one customer. Reported EBITDA was ₹225 Cr (24% margin).
Pipeline and Capabilities
The combined entity is well-positioned in the global biopharma landscape, leveraging state-of-the-art manufacturing across 11 locations and a global footprint reaching 120+ countries. The R&D pipeline remains strong, focusing on high-value areas:
- Oncology + Immunology: 16 products in early/mid-stage targeting a USD ~135 Bn addressable market, including Checkpoint inhibitors.
- GLPs + Insulins: 2 products in early/mid-stage targeting a USD ~6 Bn addressable market.
The company also emphasized strong launch momentum going into 2026, with several key launches across Oncology, Immunology, and GLP-1s, including Yesafili, Jobevne, Aukelso, Yesintek, Kirsty, Ladiazyl, Lobezyl, and Semaglutide, covering markets with a combined addressable opportunity exceeding $26 Billion.
Source: BSE
