Syngene Shares Jump 12% After Q2 Profit Turnaround (October 28)

Syngene shares had the kind of day long-suffering holders had almost stopped expecting. On Wednesday, October 28, the Biocon group’s contract research and manufacturing arm closed 12% higher at ₹411, its highest level in two months and its biggest single-day gain in six years, Livemint reported. The odd part? The September-quarter numbers behind the jump were weaker than a year ago.

What Syngene shares reacted to

The company announced its Q2 FY27 results on the evening of Tuesday, October 27. According to Syngene’s press release filed with the exchanges, revenue from operations came in at ₹833 crore, up from ₹736 crore in the June quarter (a 13% sequential rise) but down from ₹911 crore in the same quarter last year. CNBC-TV18 put the year-on-year revenue decline at 8.6%.

Profit tells a similar two-sided story. Net profit after exceptional items was ₹32 crore, against a loss of ₹9 crore in Q1 FY27 and a profit of ₹67 crore in Q2 FY26, per the filing. That is a 52% year-on-year fall, CNBC-TV18 noted. The quarter carried an exceptional charge of ₹6 crore (net of tax) for termination benefits given to employees; before that item, profit was ₹38 crore.

Margins moved the right way

Operating EBITDA was ₹147 crore, up from ₹91 crore in the June quarter but below ₹200 crore a year earlier. The operating EBITDA margin climbed to 18% from 12% in Q1, though it was still short of the 22% the company posted in Q2 FY26, the release shows.

Management blamed the year-on-year drop mainly on lower revenue from Zoetis and on forex hedge losses. MD and CEO Siddharth Mittal said in the release that, adjusted for the hedge loss, the operating EBITDA margin would have been in the mid-20s range for the quarter. The company also signed its first manufacturing agreement for its Bayview biologics facility in the US, which it called a key highlight of the quarter.

Why the market cheered a weaker year

Context matters here. Syngene has been under heavy selling pressure for close to two years, and earlier this month it hit its lowest level since June 2020, Livemint said. Even after Wednesday’s rally, the stock is 57% below its record high of ₹960. It is down 37% so far in 2026 after a 24% fall in 2025, per the same report.

When a stock is priced for more bad news, a quarter that simply stops getting worse can be enough. Q1 was a loss; Q2 was a profit with margins up six percentage points. That sequential turn, plus progress on the US biologics plant, seems to be what buyers latched on to, not the comparison with last year.

What it means for investors

We would treat one strong session with some caution. Revenue for the first half of FY27 was ₹1,569 crore against ₹1,785 crore a year earlier, according to the filing, so the business still has ground to recover. The next couple of quarters should show whether CDMO traction and the Bayview contract can fill the gap left by Zoetis. If you want a framework for reading numbers like these, our guide on how to analyse quarterly results of a company walks through it, and our explainer on earnings surprises covers why prices often react to expectations rather than raw growth.

Disclaimer: This article is for informational purposes only and is not investment advice. Stock prices can rise or fall; please do your own research or consult a SEBI-registered adviser before investing.