Bengaluru-based contract research, development and manufacturing company Syngene International has reported a sequential recovery in the second quarter of FY27, with revenue rising 13% over the previous quarter as its contract development and manufacturing (CDMO) business gained traction. The Biocon group company also signed its first manufacturing agreement for its biologics facility at Bayview in the United States, a milestone for its large-molecule ambitions.

Numbers at a glance

For the quarter ended 30 September 2026, Syngene’s revenue from operations stood at ₹833 crore, up from ₹736 crore in Q1 FY27 but 9% lower than ₹911 crore in the same quarter last year. Operating EBITDA rose to ₹147 crore from ₹91 crore in the preceding quarter, lifting the operating EBITDA margin by six percentage points to 18%. A year ago, the margin was 22%.

Profit after tax and exceptional items came in at ₹32 crore, compared with a loss of ₹9 crore in Q1 FY27 and a profit of ₹67 crore in Q2 FY26. The exceptional item of ₹6 crore (net of tax) relates to termination benefits extended to employees. For the first half of FY27, revenue was ₹1,569 crore against ₹1,785 crore in H1 FY26.

Managing Director and CEO Siddharth Mittal attributed the year-on-year decline mainly to lower revenue from Zoetis and forex hedge losses, adding that, adjusted for the hedge loss, the quarter’s operating EBITDA margin would have been in the mid-20s.

Bayview gets its first manufacturing customer

The headline business development of the quarter is a manufacturing agreement with a large pharmaceutical customer for the Bayview biologics facility. Under the arrangement, process development work will begin in India this fiscal year, with drug substance manufacturing at Bayview expected to start next financial year. Syngene says the deal strengthens its integrated India-US delivery model and the facility’s role in enabling dual-continent supply chains for global biologics customers.

The company also added further manufacturing contracts, including an agreement for clinical supplies from its biologics manufacturing facility in Bengaluru (Unit 3).

Emerging modalities, clinical science and AI

Syngene said it completed a complex oligonucleotide manufacturing programme for a leading global pharmaceutical company, covering development and manufacture of a siRNA molecule that called for specialised expertise in process optimisation and scale-up.

It has commissioned a new Clinical Translational Sciences laboratory in Bengaluru that brings together clinical biomarker development and validation, biobanking, patient stratification, precision medicine and bioanalytical capabilities. On the digital front, the company has implemented ChemVoyager, an AI-enabled synthesis planning platform, along with automated analytical systems and end-to-end sample tracking across its discovery services.

Syngene has also brought its chemistry, biology and biotherapeutics discovery capabilities under unified leadership. From 1 October 2026, Chief Scientific Officer Dr Jayashree Aiyar has taken additional charge of Discovery Services. Manpower-related cost optimisation has been completed, while work on non-manpower costs continues.

What leadership said

Executive Chairperson Kiran Mazumdar-Shaw said Syngene’s strategic priority remains to strengthen its position as an integrated research, development and manufacturing partner to the global life sciences industry, with renewed emphasis on differentiated, high-value services and CDMO capabilities. She described the improved CDMO performance and growing customer engagement as early signs of progress that reinforce confidence in the company’s investments in global manufacturing infrastructure and emerging modalities.

Mittal said the company’s focus remains on strengthening its integrated drug discovery offering, sharpening commercial execution, improving asset utilisation and cost competitiveness, and turning its scientific capabilities into sustainable growth.

Why it matters

India’s CRDMO sector is positioning itself as a trusted alternative supply base for global innovators, and biologics and oligonucleotides are among the fastest-growing segments of outsourced work. Syngene’s first Bayview contract and its siRNA programme show how Indian service providers are trying to move up the value chain, combining India-based development with US manufacturing to meet customers’ supply-chain diversification needs.

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