Biocon Set for Q2 Earnings with Biosimilars Driving Growth, Analysts Expect Mixed Performance

Biocon Limited is set to report its second-quarter financial results on November 11. Analysts from Axis Securities Equity Research anticipate that the Biosimilars division will be the main contributor to growth, with an estimated 18 per cent increase in revenue year-on-year. This growth is expected to be boosted by recent product introductions, including Insulin Aspart (Yesafili), Denosumab biosimilars, and Liraglutide, particularly in the United Kingdom market. Axis Securities also forecasts an improvement in gross and EBITDA margins sequentially, attributed to a better product mix.

Looking at the broader pharmaceutical sector, HDFC Securities projects stable revenue growth but flat EBITDA margins. They estimate an 11 per cent year-on-year sales growth and 12 per cent year-on-year EBITDA growth for their covered companies. For Biocon's domestic operations, growth is expected to slow down to 10 per cent year-on-year, partly due to Goods and Services Tax (GST) related disruptions in September 2025. Performance in US formulations is anticipated to remain stable, despite ongoing pricing pressures.

Sharekhan estimates Biocon's Q2 revenue at ₹4,057 crore and its profit after tax (PAT) at ₹122 crore. The company's management is optimistic about fiscal year 2026, expecting strong double-digit revenue growth driven by sustained momentum in Biosimilars, margin recovery in Generics from the second half of the fiscal year, and steady expansion in the Contract Research, Development, and Manufacturing Organization (CRDMO) segment. Biocon's subsidiary, Syngene, is also expected to achieve sustained double-digit growth, supported by robust client demand, new capacity additions, and its entry into the US biologics CDMO market.

**Impact** This news is significant for investors in Biocon and the Indian pharmaceutical sector. Positive results, especially from the Biosimilars segment, could boost Biocon's stock. Analyst expectations for margins and growth in various segments provide a benchmark against which the actual results will be judged. The performance of domestic operations and US formulations, along with Syngene's outlook, will also be closely watched. Impact Rating: 7/10

**Terms and Meanings** * **Biosimilars**: Biological products similar to approved ones, offering a potentially more affordable alternative. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of operational profitability. * **CRDMO**: Contract Research, Development, and Manufacturing Organization; companies offering outsourced services to pharma and biotech firms. * **GST**: Goods and Services Tax; a national indirect tax in India. * **PAT**: Profit After Tax; the net profit of a company after all taxes are paid. * **y-o-y**: Year-on-year; a comparison of a period to the same period in the previous year.