Syngene International Ltd. (SYNGENE) AI Stock Analysis

• Market Cap: ₹165.47B
• Dividend Yield: 0.19%
• Average Volume (3M): 59.93K
• Price to Earnings (P/E): 439.9
• Beta (1Y): 0.77
• Revenue Growth: 8.57%
• EPS Growth: -2.93%
• Country: IN
• Employees: 6,510
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 1.80
• Shares Outstanding: 402,939,420
• 10 Day Avg. Volume: 148,500
• 30 Day Avg. Volume: 59,929
• PEG Ratio: -20.51
• Price to Book (P/B): 6.10
• Price to Sales (P/S): 7.91
• P/FCF Ratio: 72.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 8.57
• Revenue Forecast (FY): ₹37.02B

• Rating: 61 Neutral
• Price Target: ₹433.00 ▼(-34.20% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

Solid financial performance (strong margins and low leverage) supports the score, but it is meaningfully offset by weak technicals (price below all major DMAs and bearish MACD) and an expensive valuation (high P/E with minimal dividend yield).

Positive Factors

High Profitability

Sustained high gross and EBITDA margins indicate strong pricing power and efficient service delivery in CRDMO operations. These margins support reinvestment in labs and capacity, cushion cyclical revenue swings, and underpin durable operating cash generation over the next 2-6 months.

Low Leverage

A very low debt-to-equity ratio and high equity share provide financial flexibility to fund strategic projects, absorb client payment timing, and invest in capacity expansion without material refinancing risk, enhancing resilience through industry cycles.

Recurring, Multi-year Contracts

Long-term dedicated research centers and strategic partnerships create sticky, predictable revenue streams and higher utilization. This contract structure promotes stable cash flows, deeper client relationships, and cross-selling of discovery, development, and manufacturing services.

Negative Factors

Modest Revenue Growth

Single-digit top-line growth suggests limited new client wins or slower demand scaling for higher‑value programs. Modest revenue expansion restrains operating leverage and makes it harder to scale fixed-cost infrastructure profitably without expanding service breadth or geographic reach.

Declining Net Margin

A downward net margin trend signals pressure on profitability that may stem from mix shifts, pricing pressure, or rising operating costs. Continued margin erosion would reduce cash flow available for growth investments and shareholder returns, weakening long-term financial strength.

Free Cash Flow Pressure

Capex-driven slowing of free cash flow growth and a sub-1 FCF-to-net-income ratio indicate rising investment intensity. Persistent elevated capex could constrain discretionary cash for dividends or strategic M&A and may increase reliance on internal cost improvements or external funding.

Syngene International Ltd. Business Overview & Revenue Model

Company Description

Syngene International Limited, a contract research and manufacturing company, provides drug discovery and development services in India, the United States, and internationally. The company provides discovery chemistry services, such as medicinal and synthetic chemistry, library and peptide synthesis, biomolecules, organic electronic materials, and computational and analytical chemistry; and discovery biology services in the areas of recombinant DNA engineering, cell line development, hybridoma technology, sequencing, protein sciences, screening and assay biology, DMPK, in vivo pharmacology, toxicology, and biologicals. It also offers exploratory/discovery, in vitro and genetic, and developmental and reproductive toxicology services, as well as acute, sub-chronic, and chronic toxicity studies; and chemical, formulation, analytical, and clinical development services, as well as commercial manufacturing services. In addition, the company provides lead generation, preclinical development, API, and drug product development services; and clinical trial management, pharmacokinetic analysis/bioanalytical, central lab, biometrics and clinical data management, regulatory, medical monitoring, pharmacovigilance, and medical writing services. Further, it offers other drug modalities, which include peptides, oligonucleotide synthesis, antibody drug conjugate, PROTACs, and CAR T-cell therapy services. The company serves pharmaceutical, biotechnology, nutrition, animal health, consumer goods, specialty chemical, and other companies. It has partnerships and collaborations with Bristol-Myers Squibb Co.; Baxter Inc.; and Amgen Inc. The company was incorporated in 1993 and is headquartered in Bengaluru, India. Syngene International Limited is a subsidiary of Biocon Limited.

How the Company Makes Money

Syngene makes money by providing outsourced R&D and manufacturing services to pharmaceutical and biotech customers under fee-for-service and longer-term contractual arrangements. Key revenue streams include: (1) Discovery and development services—billing clients for scientific research and development work such as medicinal chemistry, biology, DMPK, analytical services, and development activities, typically priced on a time-and-materials or project/milestone basis depending on contract structure; (2) Manufacturing services—earning revenue from contract manufacturing for clients, including production of clinical and commercial supplies and related process development and scale-up work; and (3) Dedicated/strategic research centers and long-term partnerships—generating recurring revenue through multi-year collaborations where Syngene operates integrated teams and infrastructure for specific customers (often structured as committed capacity/FTE-based or program-based engagements). Earnings are influenced by utilization of scientific and manufacturing capacity, mix of discovery versus development/manufacturing work, and the scale and duration of customer programs. Specific customer names, contract terms, and revenue contributions by partner are null.

Syngene International Ltd. Financial Statement Overview

Summary

Strong profitability and operating efficiency (gross margin 74.12%, EBITDA margin 31.46%) and a healthy, low-leverage balance sheet (debt-to-equity 0.12, equity ratio 69.55%). Offsets include modest revenue growth (4.41%) and a slightly declining net margin (13.62%) with some pressure on free cash flow retention.

Income Statement

Syngene International Ltd. has demonstrated consistent revenue growth with a revenue growth rate of 4.41% from 2024 to 2025. The gross profit margin is strong at 74.12%, indicating efficient cost management. However, the net profit margin has slightly decreased to 13.62%, which could be a potential area of concern. The EBIT and EBITDA margins are healthy at 16.78% and 31.46%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with a healthy equity ratio of 69.55%, indicating strong asset backing. The debt-to-equity ratio is low at 0.12, suggesting low leverage and financial stability. Return on equity stands at 10.50%, reflecting solid shareholder returns. Overall, the balance sheet indicates financial health with a cautious approach to debt.

Cash Flow

Syngene International Ltd. has shown a positive free cash flow growth rate, although the rate has decreased due to capital expenditures. The operating cash flow to net income ratio is robust at 2.35, indicating efficient cash generation. The free cash flow to net income ratio is 0.80, suggesting effective capital management, but there is room for improvement in cash retention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.47B	36.42B	34.89B	31.93B	26.04B	21.84B
Gross Profit	21.68B	24.41B	23.50B	21.56B	17.12B	15.28B
EBITDA	10.18B	9.91B	10.30B	9.59B	7.26B	6.44B
Net Income	4.68B	4.96B	5.10B	4.64B	3.96B	4.05B
Balance Sheet
Total Assets	65.42B	67.96B	61.52B	58.31B	55.64B	48.83B
Cash, Cash Equivalents and Short-Term Investments	10.91B	13.97B	10.77B	13.54B	12.81B	10.65B
Total Debt	5.82B	5.78B	5.55B	8.15B	10.22B	8.93B
Total Liabilities	18.07B	20.69B	18.94B	22.13B	22.66B	20.62B
Stockholders Equity	47.35B	47.27B	42.58B	36.18B	32.98B	28.21B
Cash Flow
Free Cash Flow	-2.00B	3.98B	5.50B	3.05B	1.05B	2.55B
Operating Cash Flow	-451.00M	11.68B	10.42B	8.38B	5.81B	7.01B
Investing Cash Flow	764.00M	-7.45B	-4.96B	-6.88B	-6.12B	-6.28B
Financing Cash Flow	-821.00M	-1.42B	-5.51B	-3.40B	-313.00M	580.00M

Syngene International Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 658.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SYNGENE, the sentiment is Neutral. The current price of 658.1 is above the 20-day moving average (MA) of 418.92, above the 50-day MA of 488.95, and above the 200-day MA of 609.96, indicating a neutral trend. The MACD of -19.59 indicates Negative momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 64.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SYNGENE.

Syngene International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAURUSLABS	66 Neutral	₹522.72B	59.42	―	0.15%	25.83%	421.20%
BIOCON	63 Neutral	₹611.78B	91.56	―	0.12%	10.62%	-66.88%
GLAND	63 Neutral	₹269.40B	27.13	―	1.07%	-1.51%	14.27%
ASTERDM	62 Neutral	₹346.96B	151.95	―	0.84%	-36.14%	-93.99%
SYNGENE	61 Neutral	₹165.47B	439.86	―	0.19%	8.57%	-2.93%
GLENMARK	53 Neutral	₹606.00B	35.61	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Syngene International Ltd. Corporate Events

Syngene secures relief as tax authority drops penalty in AY18 litigation

Syngene International Ltd. has disclosed that it received an order dated March 13, 2026 from the National Faceless Assessment Centre under Section 270A of the Income-tax Act relating to Assessment Year 2018-19. The communication follows earlier tax proceedings in which certain expense disallowances of Rs. 2.78 crore were scrutinized and appealed by the company.

After Syngene’s appeal, the National Faceless Appeal Centre directed verification and relief of the disputed Rs. 2.78 crore, and the Assessing Officer subsequently allowed this relief in September 2025. In line with that outcome, the latest order drops the associated penalty proceedings, removing a potential tax liability overhang and bringing closure to this specific leg of the company’s AY 2018-19 tax dispute.

Syngene Publishes Q3 FY2026 Earnings Call Transcript on Website

Syngene International Ltd. has notified the stock exchanges that the transcript of its Q3 FY2026 earnings call, held on January 23, 2026, has been uploaded to the company’s website in compliance with SEBI’s disclosure regulations. The move enhances transparency for investors and analysts by providing detailed access to management’s commentary on quarterly performance and outlook, reinforcing the company’s ongoing adherence to corporate governance and disclosure norms.

Syngene Publishes December-Quarter Financial Results in Newspapers and Online

Syngene International Ltd. has notified stock exchanges that it has published its financial results for the quarter and nine months ended December 31, 2025, in the Financial Express (all-India edition) and Vijayavani (Bengaluru edition), in line with regulatory disclosure requirements. The company has also made these financial details available on its website, underscoring its compliance with listing obligations and its efforts to maintain transparency and timely communication with shareholders and market participants.

Syngene Extends and Expands Bristol Myers Squibb Research Alliance to 2035

Syngene International has extended and expanded its long-term strategic research collaboration with Bristol Myers Squibb through 2035, broadening the scope of integrated services from early discovery through development, manufacturing and clinical support to commercialization. The renewed agreement deepens a partnership that began in 1998 and centers on the Biocon Bristol Myers Squibb Research and Development Center in Bengaluru, where around 700 Syngene scientists operate as an extension of BMS’s global research organization, strengthening Syngene’s role as a critical R&D and manufacturing hub for key therapeutic areas and reinforcing its position as a leading end-to-end CRDMO partner to large pharma.

Syngene Wins Karnataka High Court Ruling in Rs 48.9 Crore Tax Refund Case

Syngene International has received a favourable order from the High Court of Karnataka in a long-running tax matter concerning assessment years 2010-11, 2011-12 and 2012-13. The court allowed the company’s writ petition challenging the adjustment of income tax refunds for 2010-11 and 2011-12 against outstanding demands for other years and the non-issue of a refund for 2012-13, together aggregating to about Rs 48.9 crore, and directed the tax authorities to refund the amount with interest, subject to verification. Syngene said it does not expect a material impact on its financials, operations or activities from the order and is analysing the judgment to determine its next steps, with no penalties or compliance aberrations noted by the court.

Syngene Revamps Green Power Strategy With Rs 35 Million Stake in O2 Renewable Energy V

Syngene International Ltd. has revised its renewable energy sourcing plan by entering into a Power Purchase Agreement and Share Purchase Agreement with O2 Renewable Energy V Private Limited, an O2 Group special purpose vehicle that operates a wind-solar hybrid power plant in Karnataka. In place of an earlier arrangement with another O2 entity, the company will now invest Rs. 35 million to acquire at least a 26% equity stake in O2 Renewable Energy V, primarily through purchasing shares from Dalmia Cement (Bharat) Ltd., in order to secure captive status under India’s Electricity Act and increase the share of renewable power in its overall energy consumption, with the transaction expected to be completed in tranches by March 31, 2026.