Biocon Expects Biosimilar Segment to Drive Growth in Fiscal Year 2027

Biocon to Focus on Capacity Utilization and Profitability in FY27

Biocon, a leading biopharmaceutical company, is expected to drive growth in FY27 through new biosimilar launches and scaling up of recently launched products. The company, under the leadership of managing director and chief executive Shreehas Tambe, is shifting its focus from a heavy investment phase towards improving capacity utilization, profitability, and margins across its biopharmaceutical businesses.

According to Biocon's financial results for the fourth quarter and the full year FY26, the company has successfully integrated its biosimilars and generics business to create one biopharmaceutical enterprise with greater scale capability and reach. The focus now shifts towards improving utilization of the capacity built, expanding margins, and driving a steady improvement in return on capital employed.

Recently launched biosimilars across markets have begun scaling up and are expected to gather momentum through the year, particularly in the second half of FY27. In April, Biocon launched Bosaya and Aukelso, two biosimilars for bone-related disorders drug Denosumab, in the US. The company has also obtained key approvals, including Health Canada's nod for two Denosumab biosimilars.

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Biocon competes with giants like Sandoz, Pfizer, and Amgen in the US biosimilars market. The company's biosimilars business recorded 16% year-on-year revenue growth during FY26, while Ebitda rose 40% on a like-to-like basis, supported by strong performance in advanced markets, tender wins in emerging markets, and an improved product mix. Ebitda margins in the biosimilars business stood at around 26% during the quarter, with the company expecting further expansion over the medium term as operating leverage improves.

Biocon's consolidated revenue from operations in the fourth quarter was ₹4,516.6 crore as against ₹4,417 crore in the year-ago period, while its net profit dropped 57% to ₹198.6 crore. The company's performance was hit by the loss of lenalidomide sales, as compared to the corresponding period last year, as well as exceptional items. Consolidated revenue from operations in FY26 stood at ₹16,927 crore as against ₹15,261.7 crore in FY25, while its net profit dropped to ₹368.8 crore, down from ₹1,429.4 crore in FY25.

The company expects interest cost savings of over ₹300 crore in FY27 following the buyout of minority shareholders in Biocon Biologics and refinancing initiatives to strengthen its balance sheet over the last year, which would directly strengthen its bottom line.

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