Syngene shares zoom 17% even as firm’s Q4 net profit drops 19% YoY. What’s driving the surge?

The shares of CRDMO player Syngene rallied nearly 17% on Thursday, even after the company reported a 19% year-on-year drop but a strong sequential surge in net profit to Rs 148 crore for the fourth quarter of the financial year 2026, along with key management changes.

While the company’s net profit dropped over 19% from the Rs 183 crore reported in the fourth quarter of the previous financial year, it saw a multi-fold increase from the Rs 15 crore net profit reported in the third quarter of FY26. The net profit for the reported quarter included a gratuity re-measurement credit of Rs 20 crore arising from revised labour codes, and Rs 25 crore exceptional loss related to termination benefits extended to employees in accordance with the approved policy.

Revenue from operations, meanwhile, grew nearly 2% to Rs 1,036.5 crore in Q4 FY26, from Rs 1,018 crore in the corresponding quarter of the previous financial year. Sequentially, revenue grew more than 13% QoQ from Rs 917.1 crore reported in Q3 FY26.

Syngene said that its profit after tax before exceptional items fell 16% YoY to Rs153 crore in the January-March quarter of the financial year which ended on March 31, 2026.

Key leadership changes

Indian industrialist Kiran Mazumdar-Shaw who transitioned from the role of Non Executive Chairman to Executive Chairman from April 1 onwards, said she is pleased to have taken the role at a pivotal moment in the company’s growth journey. “I look forward to working with the new leadership team to shape our next phase of expansion, as we continue to benefit from the rising global demand for outsourcing across the life sciences sector. While biotech funding remains discerning and largely concentrated on late-stage assets, Syngene’s diversified end-to-end business model—from discovery and development to manufacturing gives us both resilience and strategic agility in navigating these market realities. We are also focused on building new business lines, strengthening our differentiated service offerings, and investing in AI and digital capabilities that will enhance speed, productivity, and value creation for our clients,” she said.

Syngene International’s Managing Director and CEO Peter Bains meanwhile said that Syngene’s full-year revenue from operations grew 3%, and with an EBITDA margin of 25%, performance was in line with its revised full-year guidance. “The overall numbers reflect the specific impact from a single large-molecule biologics client, with the underlying business showing steady momentum. During the year, we continued to invest in new capabilities and emerging modalities such as peptides and ADCs, further strengthening our integrated offering and positioning us for long-term growth,” he said.Notably, Syngene announced that Siddharth Mittal has been appointed Managing Director and CEO of the company, effective from July 1, 2026, for a five-year term. He will succeed Peter Bains. Mittal earlier served as the Managing Director and CEO of Biocon.“Q4 reported growth at 2% and 13% sequentially reflects the ongoing product impact in our largest biologics customer, resulting in full year growth of 3%. Operating EBITDA margin at 25% for the year reflects this impact and additional operating costs as we bring the new biologics manufacturing facility in India into operations. We generated Rs. 521 Cr of cash during the year, post capex investment, strengthening our balance sheet,” said the company CFO Deepak Jain.Notably, Maninder Kapoor Puri will take over as the company’s Chief Human Resources Officer from May 1 onwards. She previously led the human resources function at Biocon.

Macquarie on Syngene

Macquarie maintained its ‘Outperform’ rating on Syngene shares, with a target price of Rs 835 apiece, CNBC-TV18 reported. This implies an upside potential of more than 93% from the stock’s previous closing price of Rs 432.15 apiece.

The international brokerage was quoted as saying by the business news channel that EBITDA was 11% ahead of its estimates, while the adjusted net profit of Rs 150 crore was 8% below expectations.

Syngene share price

Syngene shares rallied nearly 17% to trade at Rs 505.60 apiece in the afternoon. The stock has gained over 17% in one week and nearly 29% in one month. The shares of the company are however down nearly 23% in 2026 so far.

In the longer term, the shares of the company dropped 21% in one year, 26% in three years and over 9% in five years. The company currently has a market capitalisation of nearly Rs 20,280 crore.

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