Biocon shares rise 3% despite 57% decline in Q4 net profit
Revenue growth and margin expansion offset impact of exceptional charges
Biocon announces dividend and signals phased leadership transition plans
Shares of Biocon rose around 3% in early trade on Thursday despite the company reporting a sharp decline in fourth-quarter profit for FY26.
The stock opened at ₹379 on the NSE and climbed to an intraday high of ₹395.85, outperforming the broader market. At around 1 pm, the stock was trading 1.5% higher at ₹383.40, while the Nifty 50 was down 0.6%.
1 May 2026
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The Bengaluru-based biopharmaceutical company reported a consolidated net profit of ₹198.6 crore for Q4 FY26, down 56.8% from ₹459.4 crore in the corresponding quarter last year.
The decline was largely attributed to exceptional charges worth ₹80.4 crore linked to multiple items, including the impact of the new labour code.
Revenue from operations, however, increased marginally to ₹4,516.6 crore from ₹4,417 crore a year earlier.
Margins, Revenue Trends Support Sentiment
For the full financial year FY26, Biocon's consolidated net profit fell to ₹368.8 crore from ₹1,429.4 crore in FY25, while revenue rose to ₹16,927 crore from ₹15,261.7 crore.
Brokerage Motilal Oswal Financial Services said Biocon's revenue and profit were broadly in line with expectations, while EBITDA came in ahead of estimates.
EBITDA declined 5.4% year-on-year to ₹1,020 crore, while EBITDA margins contracted 180 basis points to 22.6%. Gross margins, however, expanded by 190 basis points to 66.5% during the quarter.
Executive Chairperson Kiran Mazumdar-Shaw said the company delivered margin expansion along with 13% year-on-year growth in operating revenue after excluding the one-time impact of generic lenalidomide sales in the previous year.
"Biocon closed FY26 on a strong note despite a complex geopolitical environment," she said, adding that the performance reflected business resilience and disciplined execution during a pivotal integration phase.
Leadership Transition and Dividend
Recently, Kiran Mazumdar-Shaw said the company plans a phased leadership transition over the next five years, with her niece Claire Mazumdar expected to eventually take over as chairperson. Claire currently serves as founding CEO of oncology-focused biotech firm Bicara Therapeutics.
Meanwhile, Biocon's board recommended a final dividend of 50 paise per equity share for FY26. The company has fixed July 3, 2026 as the record date, with dividend payments expected on or before August 31, 2026.
