Synopsis: Biocon shares gained after Q3 FY26 PAT surged 475% YoY, driven by improved profitability and steady revenue growth. Biosimilars remained the largest contributor, accounting for 59% of revenue. Strategic integration of Biocon Biologics and recent fundraises further strengthened its positioning in high-growth global therapies.
The shares of this company, which is engaged in the business of manufacturing biotechnology products and research services, had its shares in the news after the company reported robust results in Q3 FY26.
With the market cap of Rs 61,716 crore, the shares of Biocon Ltd have jumped about 2% and reached a high at Rs 382, compared to their previous day’s closing price of Rs 375.25. The shares are trading at a PE of 75, whereas its industry PE is at 29.6.
Q3 FY26 Result highlights
The revenue from operations for the company stood at Rs 4,173 crore when compared to Rs 3,821 crore in Q3 FY25, growing by about 9 per cent on a YoY basis and on a QoQ basis falling by 3 per cent from Rs 4,296 crore in Q2 FY26.
The PAT jumped 475% on a YoY basis when you compare the Q3 FY26 profit at Rs 144 crore to the Rs 25 crore profit in Q3 FY25 and on a QoQ basis has grown 70% from the Rs 85 crore profit in Q2 FY26.
Revenue Contribution and segmentation
In Q3 FY26 itself, biosimilars accounted for 59%, followed closely by 21% under the CRDMO segment and 20% under generics. This represents the continuing dominance of the biosimilars business for its contribution to the overall revenue stream. The segmental composition indicates that the company derives more than half of its revenue from just one vertical, with the remaining proportion of the revenue almost evenly distributed between CRDMO and Generics.
With regard to sales performance, biosimilars recorded revenue of Rs 2,497 crore, increasing by 9% YoY, while generics recorded revenue of Rs 851 crore with the highest growth in sales at 24% YoY, signifying increasing traction in API and formulation segments. Another segment, CRDMO, also recorded revenue of Rs 917 crore during the period, declining by 3% YoY, signifying less traction in the Research and Contract Manufacturing segment.
Corporate highlights
Biocon Limited has made an important strategic move by fully integrating Biocon Biologics Limited, its wholly owned subsidiary, valued at around USD 5.5 billion. The operational ease that will be obtained from structuring its organisational hierarchy will give the company an edge in terms of control over global commercialisation and operational alignment.
From a strategic perspective, the move is important in terms of strengthening Biocon’s position in the global market for high-growth therapies such as diabetes, oncology, and immunology, particularly in differentiated biosimilars, insulins, generics, and GLP-1 drugs.
To facilitate this consolidation, Biocon has raised Rs 4,150 crore (USD 460 million) via a Qualified Institutions Placement done in January 2026. The funds were raised mainly for the cash payout to Viatris Inc. (formerly Mylan) for exiting their stake in Biocon Biologics. It is worth mentioning that this is the second fundraise by Biocon in the past eight months, totalling close to USD 1 billion.
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