Synopsis: Syngene International Limited shares fell nearly 18% amid weak Q3 results, sharp profit decline, margin pressure from biologics destocking, and cautious brokerage views following target cuts by Jefferies and Goldman Sachs.
This Small-cap Pharma Stock, engaged in providing integrated contract research, development, and manufacturing services for pharmaceuticals, biotech, nutrition, animal health, and speciality chemicals globally, hit a 10 percent lower circuit today and crashed up to 17.60 percent in the last 2 trading sessions. In this article, we will explore the reasons behind the decline in the stock’s value.
With a market capitalization of Rs. 19,675.53 crores, the shares of Syngene International Limited hit a 10 percent lower circuit of Rs. 488.30 per share on Tuesday, down from its previous closing price of Rs. 542.55 per share. Since then, the stock has breached its lower circuit and is currently trading at Rs. 482.55 per equity share (11.06 percent down)
Reason for the Fall:
Syngene International Limited has continued to face selling pressure, extending its losing streak to five consecutive sessions. The stock has corrected sharply, declining around 22.88 percent from its January 20, 2025, peak of Rs. 625.75 to the current level of about Rs. 482.55. Additionally, the stock has dropped by 18.57 percent in just the last two days.
The sharp correction followed weak December-quarter results, where consolidated revenue declined 2.82 percent YOY, from Rs. 943.7 crore in Q3 FY25 to Rs. 917.1 crore in Q3 FY26, and grew slightly by 0.71 percent QoQ from Rs. 910.6 crore in Q2 FY26.
Further, the company’s EBITDA has decreased by 25.50 percent, from Rs. 302 crore in Q3 FY25 to Rs. 225 crore in Q3 FY26. The net profit has also declined 88.56 percent YOY, from Rs. 131.1 crore in Q3 FY25 to Rs. 15 crore in Q3 FY26, and also decreased by 77.65 percent QoQ from Rs. 67.10 crore in Q2 FY26.
Another key reason for the share decline in Syngene International Limited is the cautious stance taken by global brokerages. Jefferies downgraded the stock to “underperform” from “hold” and sharply cut its target price to Rs. 480 from Rs. 660 earlier, marking a downgrade of nearly 27.27 percent. The revised target implies a downside of around 1.70 percent from current levels, adding to negative sentiment.
Meanwhile, Goldman Sachs maintained a Buy rating but reduced its target price to Rs. 675. Goldman Sachs highlighted that revenues remain under pressure due to ongoing inventory destocking in the biologics segment. Although the research services business is showing gradual improvement, EBITDA margins continue to be impacted by higher costs related to new facility additions. The brokerage also lowered its earnings estimates for FY27 and FY28, indicating a slower recovery path than previously anticipated.
Business Development:
Syngene International Limited caters to a diversified global client base of around 400 active customers, including 14 of the world’s top 20 pharmaceutical companies. The company has developed a strong, innovation-driven platform, supported by more than 400 patents jointly owned with its clients.
As of March 31, 2025, Syngene employed 8,235 people, including 5,641 scientists. Its workforce is highly qualified, with 51 percent holding master’s degrees, 7 percent PhDs, and the remaining 42 percent comprising other skilled professionals, enabling the delivery of integrated, high-quality scientific solutions and sustaining a competitive edge.
Syngene International Limited collaborates with a wide range of leading global organizations across pharmaceuticals, biotechnology, animal health, consumer products, and speciality chemicals. Its partners include Bristol Myers Squibb, Sanofi, Novartis, Amgen, Merck, Zoetis, Elanco, FMC, Dow AgroSciences, Givaudan, Beiersdorf, Essilor, Kraton, and Purina.
Syngene International Limited was founded in 1993 and is headquartered in Bengaluru. The company is a leading CRDMO providing integrated scientific services from early drug discovery to commercial manufacturing. The company serves global pharmaceutical, biotechnology, nutrition, animal health, and speciality chemical clients through advanced research, development, and manufacturing facilities across Bengaluru, Hyderabad, and Mangaluru.
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