Biocon Q4 FY25 results: net profit up 106.1% to ₹459.40 crore, revenue up 12.8%

How did Biocon perform in Q4 FY25?

Biocon’s consolidated Q4 FY25 operating revenue was ₹4,417 crore, up ₹499.90 crore or 12.8% from Q4 FY24 and ₹595.60 crore or 15.6% from Q3 FY25. Total income was ₹4,454 crore, while EBITDA was ₹1,078 crore, up 17.7% year on year and 43.4% sequentially. The EBITDA margin was 24.4%, compared with 23.4% in Q4 FY24 and 19.7% in Q3 FY25.

Consolidated profit before tax was ₹486.80 crore, against ₹321.70 crore in Q4 FY24 and ₹155.90 crore in Q3 FY25. Net profit was ₹459.40 crore, while profit attributable to owners was ₹344.50 crore. Basic EPS was ₹2.88, against ₹1.13 in the year-ago quarter and ₹0.21 in the previous quarter. Standalone revenue was ₹643.8 crore and profit was ₹21.2 crore, with revenue up 20.9% and profit before exceptional items of ₹14.0 crore.

What changed in Biocon's costs and profit?

Total expenses were ₹3,988 crore, up ₹352.30 crore or 9.7% from Q4 FY24, while cost of materials fell ₹363.60 crore or 24.6% to ₹1,114 crore. Employee cost rose ₹69.50 crore or 9.4% to ₹811.10 crore, depreciation increased ₹29.30 crore or 7.2% to ₹436.30 crore and other expenses rose ₹124.70 crore or 13.4% to ₹1,055 crore. Finance costs declined ₹14.60 crore or 6.4% to ₹212.40 crore.

Other income was ₹36.90 crore, down ₹11.70 crore or 24.1% from Q4 FY24. The quarter included an exceptional gain of ₹20.40 crore, compared with an exceptional charge of ₹8.80 crore in the year-ago quarter, while tax fell ₹68.70 crore or 71.5% to ₹27.40 crore. The filing attributes the Generics improvement to the US launch of Lenalidomide, alongside the UK launch of Liraglutide and the US launch of Dasatinib.

How did Biocon do in FY25 as a whole?

For FY25, consolidated operating revenue was ₹15,261.7 crore, up ₹506.0 crore or 3.4% from FY24, while total income was ₹16,469.9 crore, up 5.4%. Profit before tax increased 17.2% to ₹1,886.6 crore and net profit rose 10.1% to ₹1,429.4 crore. Basic EPS was ₹8.46, compared with ₹8.55 in FY24.

What do the balance sheet and cash flow show?

At 31 March 2025, total assets were ₹58,797.3 crore, against ₹57,127.9 crore at 30 September 2024, while total equity was ₹27,712.5 crore compared with ₹26,720 crore. Borrowings rose to ₹17,755.5 crore from ₹16,149.8 crore and cash increased to ₹3,227.1 crore from ₹1,687.7 crore. Inventories were ₹4,931.1 crore, trade receivables ₹5,487.9 crore and trade payables ₹6,548.7 crore.

FY25 operating cash flow was ₹4,061.2 crore, compared with ₹2,953.9 crore in FY24. Investing cash flow was a ₹234.1 crore outflow against a ₹1,004.5 crore outflow, and financing cash flow was a ₹1,854.0 crore outflow compared with a ₹2,332.7 crore outflow. Capital expenditure was ₹2,136.6 crore, against ₹1,680.5 crore in FY24.

How has Biocon done over the last 8 quarters?

Revenue reached its highest quarterly level in the series at ₹4,417 crore in Q4 FY25, after ₹3,821.4 crore in Q3 FY25. Profit also turned upward from ₹81.1 crore in Q3 FY25 to ₹459.40 crore in Q4 FY25, although it remained below the ₹861.8 crore recorded in Q1 FY25. The EBITDA margin improved to 24.4% from 19.7% in the previous quarter and reached its highest point in the eight-quarter series. Revenue had earlier bottomed at ₹3,422.6 crore in Q1 FY24.

Which businesses drove the quarter?

Generics recorded Q4 FY25 revenue of ₹1,047.5 crore, up 45.8% from ₹718.4 crore in Q4 FY24, and EBIT of ₹180.8 crore against ₹50.4 crore. Its reported EBIT margin was 17.3%. The company’s presentation said the quarter was driven by the US launch of Lenalidomide, with further support from the UK launch of Liraglutide and the US launch of Dasatinib.

Biosimilars posted revenue of ₹2,463.4 crore, up 4.5% from ₹2,357.8 crore, while EBIT fell to ₹39.3 crore from ₹90.3 crore. The segment’s reported EBIT margin was 1.6%. Research Services reported revenue of ₹1,018 crore, up 11.0% from ₹916.9 crore, and EBIT of ₹240.5 crore against ₹209 crore, with a reported EBIT margin of 23.6%. Novel Biologics reported no revenue or EBIT.

What else did the company announce?

In its 8 May 2025 filing, the board approved the audited standalone and consolidated results for the quarter and year ended 31 March 2025. It recommended a final dividend of 10%, or Re. 0.50 per equity share of face value of Rs. 5, subject to shareholder approval at the ensuing AGM. The record date was set for 4 July 2025, with payment scheduled by 5 September 2025.

The board approved the re-appointment of Naina Lal Kidwai as an Independent Director for a second term of 5 consecutive years from 8 August 2025 to 7 August 2030, subject to shareholder approval. It also appointed V. Sreedharan and Associates as Secretarial Auditors for 5 consecutive years from FY25-26, subject to shareholder approval. The 47th AGM was scheduled through video conferencing for 8 August 2025.

What did Biocon's management say?

Management maintained R&D guidance at 7-9% of revenue for Biologics in FY26. It guided to Biologics capital expenditure of approximately USD 100 million over the next two years, mainly for Malaysia drug-substance capacity, and Generics capital expenditure of approximately USD 50 million next year, followed by mostly maintenance capex from FY27. Management also said Aflibercept’s US launch would occur no later than 2H CY26 and Liraglutide’s US target action date was in 2H CY25.

Management announced a ₹4,500 crore capital raise through a QIP and private placement, with the first tranche targeted by mid-June 2025 to address structured-instrument put obligations. A board committee was formed to assess strategic options, including a possible merger between Biocon Limited and Biocon Biologics. Management also listed pricing pressure, lumpy Generics revenue, capacity constraints and restructuring uncertainty among the risks discussed.

The company said five biosimilars were planned for launch over the next 12-18 months: Stelara, Bevacizumab, Aspart, Aflibercept and Denosumab. Management said Generic Copaxone had a US target action date in 2-3 months and Insulin Aspart had a US goal date of about 1 month. Kedar Upadhye, CFO of Biocon Biologics, said: “On the capex side, we expect to spend about USD 100 million over the next couple of years. After which, it's expected to get moderated down. Large part of this money will go to enhance the capacities in Malaysia.”

How did Biocon shares react?

Biocon’s shares were up 0.1% after five minutes, 1.2% after 15 minutes and 1.0% after 30 minutes from the price when the filing appeared. The stock closed 0.8% below its pre-results close on the reaction day and was down 1.6% by the next day’s close, measured cumulatively from the same pre-results close. By the fifth session, it was up 1.6% from that close.

The Pharmaceuticals industry’s other stocks recorded a median reaction-day move of -0.2%, a next-day move of 2.5% and a five-day move of 5.5%. Biocon underperformed the industry median by 0.6 percentage points on the reaction day, 4.1 percentage points by the next day and 3.8 percentage points over five sessions. Earlier reaction-day moves were 1.1% on 30 January 2025, -1.4% on 30 October 2024, 0.0% on 8 August 2024 and -1.0% on 16 May 2024.

How did other Pharmaceuticals companies do?

A total of 155 Pharmaceuticals companies were compared. Their median revenue growth was 8.3%, compared with Biocon’s 12.8% consolidated revenue growth in Q4 FY25. Of the peers, 97 grew slower than Biocon and 58 grew faster. Among the 155 peers for which profit was compared, 87 reported higher profit.