Biocon CEO forecasts H2 results to outperform H1; company posts 52% fall in Q2 net profit; revenue up 2%

Mumbai: Biocon expects its performance in the second half of fiscal 2027 to be stronger than the first six months, driven by biosimilars ustekinumab and aflibercept in the US, the upcoming launch of pertuzumab in Europe and Brazil, and rising demand for insulin, chief executive Shreehas Tambe said.

The Bengaluru-based company on Wednesday reported a 52% fall in second-quarter consolidated net profit from a year earlier, hurt by delayed shipments due to geopolitical and shipment disruptions. For the six months ended September 30, net profit rose 42%.

Consolidated revenue from operations increased by 2% to Rs 4,389 crore for the quarter and by 6% to Rs 8,725 crore for the half year.


“We’ve always said the second half of the year is going to be stronger for us than the first half,” Tambe said.

Ebitda declined 7% to Rs 865 crore for the second quarter, with margins contracting to 20% from 22% a year earlier.

Biopharma revenue, comprising biosimilars and generics, grew 5% to Rs 3,583 crore. Revenue form biosimilars increased 3% to Rs 2,809 crore, while generics grew 10% to Rs 774 crore.

Explaining the margin decline, Tambe said around $20 million of biopharma revenue, equivalent to about 5% of quarterly revenue, could not be recognised in Q2 because shipments were delayed. While the associated costs were booked during the quarter, the shipments reached customers and were recognised as revenue in October.

“There’s no underlying business challenge. These products have subsequently been sold in the month of October itself because they reach the customers after September. And those are on account of shipment delays that have occurred because of the ongoing geopolitical issues that you’re seeing,” Tambe said.

“We have always said Ebitda margins will be in the region of mid-20s and that is what you will continue to see,” he said, adding that there was no systemic issue with the business.

On pertuzumab, a monoclonal antibody for treating a type of breast cancer, Tambe said the company had a contracted supply value of $400 million over 10 years under its Brazil partnership, with supplies expected to begin in the fourth quarter of FY27. He estimated the European market opportunity to be $600-700 million, with Biocon expecting to launch it in the same quarter.

“The $400 million over 10 years, there will be some ramp up, ramp down as you will expect in any product,” he said.

In the US, Biocon’s ustekinumab biosimilar Yesintek has reached a 34% market share, while its aflibercept variant Yesafili is expected to see growth in the second half. Ustekinumab is a human monoclonal antibody medication for treating chronic inflammatory and autoimmune conditions, while aflibercept is prescribed for some eye conditions and carcer.

Commenting on the US midterm election results and potential policy changes, Tambe said the focus on healthcare affordability remained bipartisan.

“The US policy overall has always been to see from different bipartisan consensus on reducing healthcare costs. The approaches may have been different on different sides of the aisle, but we see the outcomes not impacting the affordability part,” he said. “The focus remains on making healthcare more affordable for both sides.”