Company Update : Biocon Ltd by JM Financial Services
FY25 has been a transformational year for Biocon, marked by regulatory clearances, bold deleveraging efforts, and strategic positioning for the next phase of growth across its three core businesses. The Generics division is preparing to tap into opportunities in GLP-1 and injectables, while Biocon Biologics has secured three key biosimilar approvals, with the remaining two expected over the next 12 months. Syngene improved its employee attrition rate and is poised for low to mid-teens growth in its base business. Addressing investor concerns around high leverage, the company successfully raised INR 45 bn through a QIP, strengthening its balance sheet. With these developments, Biocon is well-positioned for a material improvement in both operational and financial performance. We project 13%/21%/35% Revenue/EBITDA/PAT CAGR over FY25–28 and maintain a BUY rating on the stock.
* Overall FY25 Performance: Biocon reported a strong FY25, driven by strategic product launches, deeper penetration into regulated markets, focused capital allocation, and regulatory successes across all business verticals. Group consolidated revenue crossed USD 1.4 bn, reflecting high-single-digit growth, with biosimilars contributing the majority share.
* Manufacturing Milestones: Completed Phase 2 of Cranbury, NJ site expansion, increasing capacity by 30%. Bengaluru injectable plant (Parenteral facility) is expected to be operational by 4QFY26, with capacity of 100 mn vials/ampoules annually. New product approvals in US have been enabled with Malaysia and India facilities receiving Voluntary Action Indicated (VAI) status from US FDA. Malaysia’s capacity expansion for phase II will be supported with an expect capex of ~USD 100mn.
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SEBI Registration Number is INM000010361
