Syngene International earnings calls.

Syngene reported a disappointing Q3 FY26 with revenue from operations declining 3% YoY to Rs 917 crore, driven primarily by ongoing headwinds from a single large molecule product (Librela) from its largest biologics customer Zoetis. Operating EBITDA stood at Rs 209Current 209 crore vs previous available quarter 200 crore. crore with a 23% margin, significantly compressed from 30% in Q3 FY25, reflecting lower revenue, hedge losses of Rs 23.3 croreCurrent Rs 23.3 crore. Reported change: vs +Rs 1.7 crore Q3 FY25., and higher staff costs. PAT before exceptional items fell 44% YoY to Rs 73 crore. The full-year guidance was revised to a 3%-5% revenue decline with EBITDA margins of 22%-23%. Management characterized underlying business growth, excluding the single product impact, as high single-digit to low double-digit in constant currency. The BMS partnership was extended through 2035, providing a 10-year strategic horizon with over 700 scientists deployed. CapEx guidance stands at $45 million for FY26 with a net cash balance of Rs 902 crore. The single-product impact is expected to continue beyond Q4 and into FY27 before fully playing out. Key risks include customer concentration, capacity underutilization at newer facilities, and management's inability to provide specific timelines or compensation sources for the Zoetis product shortfall.