Biocon is shifting its focus to capacity utilisation, expanding margins and boosting returns after a phase of building capabilities, managing director and CEO Shreehas Tambe said on Friday as geopolitical and supply chain risks begin to shape near-term costs.
“Over the past few years, we have invested materially to build global scale capability and capacity, particularly in biosimilars, insulins, peptides and complex generics,” Tambe said in an earnings call post FY26 results. “The focus now shifts towards improving utilisation of the capacity we built, expanding margins and driving a steady improvement in terms of return on capital investment.”
Last fiscal, Biocon integrated its biosimilars business with its generics formulations and APIs business, creating a unified biopharmaceutical enterprise.
For FY26, it reported operating revenue of Rs 16,927 crore, up 13% year-on-year, after adjusting for one-time generic Lenalidomide sales in FY25. Consolidated Ebitda margin expanded around 200 basis points on a like-to-like basis. Biocon’s consolidated net profit slumped 74% year-on-year to Rs 368.8 crore from Rs 1,429.4 crore in FY25.
The board of directors has recommended a final dividend of Re 0.50 per share at the rate of 10% of the face value of the share, for FY26.
Tambe said there is no material impact yet on the company’s financials from the West Asia conflict. However, prolonged geopolitical disruptions could push up costs across the pharmaceutical industry as companies increasingly shift from sea freight to air cargo, he noted.
“If this situation continues, then it will impact everyone in this space,” he said, as global drugmakers grapple with supply-chain uncertainty and rising freight costs linked to instability in West Asia.
Companies may increasingly have to rely on air freight as sea routes become less reliable, potentially raising industry-wide logistics costs, Tambe said.
Biocon expects recent biosimilar launches to scale up in FY27, particularly in the second half of the year, supported by products.
“The focus will not be just on top-line growth or market share. It will be about making sure you have sustainable margins and profitable growth,” Tambe said.
Biocon is also stepping up its play in GLP-1s and peptides after securing US FDA approval for generic liraglutide for diabetes and obesity indications.
“This is not a sprint. This is a marathon,” Tambe said of the company’s obesity-drug strategy. “We believe this is a long opportunity and we are in it for the long haul.”
The company is also exploring in-licensing opportunities to expand its biosimilars portfolio and strengthen therapy-specific franchises globally.
“We are on the active lookout,” Tambe said. “We have a business development team which looks out for opportunities that are synergistic for us to commercialise.”
He said Biocon would selectively add products where it sees gaps in its portfolio rather than develop every asset internally.
Reassuring about leadership continuity following recent succession-related announcements by founder Kiran Mazumdar-Shaw, Tambe said: “The market was looking forward to clarity in terms of how the succession of the promoter front is going to play out.”
The Biocon founder on Tuesday named her niece Claire Mazumdar, 37, as her chosen successor at the biotechnology company. The latter is the founding CEO of Bicara Therapeutics, a Nasdaq-listed company incubated by Biocon.
In a post on X, Shaw wrote: “Claire will transition into my role at the right time, so not planning to hang up my boots just yet.”
Mazumdar-Shaw “continues to be excited, invested and very engaged in the business”, Tambe added. “I think she’s given good visibility and clarity in terms of how continuity is going to be there…That should help everyone who’s watching this space.”
“Over the past few years, we have invested materially to build global scale capability and capacity, particularly in biosimilars, insulins, peptides and complex generics,” Tambe said in an earnings call post FY26 results. “The focus now shifts towards improving utilisation of the capacity we built, expanding margins and driving a steady improvement in terms of return on capital investment.”
Last fiscal, Biocon integrated its biosimilars business with its generics formulations and APIs business, creating a unified biopharmaceutical enterprise.
For FY26, it reported operating revenue of Rs 16,927 crore, up 13% year-on-year, after adjusting for one-time generic Lenalidomide sales in FY25. Consolidated Ebitda margin expanded around 200 basis points on a like-to-like basis. Biocon’s consolidated net profit slumped 74% year-on-year to Rs 368.8 crore from Rs 1,429.4 crore in FY25.
The board of directors has recommended a final dividend of Re 0.50 per share at the rate of 10% of the face value of the share, for FY26.
Tambe said there is no material impact yet on the company’s financials from the West Asia conflict. However, prolonged geopolitical disruptions could push up costs across the pharmaceutical industry as companies increasingly shift from sea freight to air cargo, he noted.
“If this situation continues, then it will impact everyone in this space,” he said, as global drugmakers grapple with supply-chain uncertainty and rising freight costs linked to instability in West Asia.
Companies may increasingly have to rely on air freight as sea routes become less reliable, potentially raising industry-wide logistics costs, Tambe said.
Biocon expects recent biosimilar launches to scale up in FY27, particularly in the second half of the year, supported by products.
“The focus will not be just on top-line growth or market share. It will be about making sure you have sustainable margins and profitable growth,” Tambe said.
Biocon is also stepping up its play in GLP-1s and peptides after securing US FDA approval for generic liraglutide for diabetes and obesity indications.
“This is not a sprint. This is a marathon,” Tambe said of the company’s obesity-drug strategy. “We believe this is a long opportunity and we are in it for the long haul.”
The company is also exploring in-licensing opportunities to expand its biosimilars portfolio and strengthen therapy-specific franchises globally.
“We are on the active lookout,” Tambe said. “We have a business development team which looks out for opportunities that are synergistic for us to commercialise.”
He said Biocon would selectively add products where it sees gaps in its portfolio rather than develop every asset internally.
Reassuring about leadership continuity following recent succession-related announcements by founder Kiran Mazumdar-Shaw, Tambe said: “The market was looking forward to clarity in terms of how the succession of the promoter front is going to play out.”
The Biocon founder on Tuesday named her niece Claire Mazumdar, 37, as her chosen successor at the biotechnology company. The latter is the founding CEO of Bicara Therapeutics, a Nasdaq-listed company incubated by Biocon.
In a post on X, Shaw wrote: “Claire will transition into my role at the right time, so not planning to hang up my boots just yet.”
Mazumdar-Shaw “continues to be excited, invested and very engaged in the business”, Tambe added. “I think she’s given good visibility and clarity in terms of how continuity is going to be there…That should help everyone who’s watching this space.”
