Syngene Q2 FY27: PAT -52% YoY to ₹32 Cr as margin rebounds off Q1's low

Syngene's consolidated revenue came in at ₹832.7 Cr, down 8.6% YoY from ₹910.6 Cr but up 13.1% sequentially from Q1's ₹736.0 Cr. Consolidated PAT of ₹32.2 Cr fell 52% YoY from ₹67.1 Cr, though it marks a clear sequential turnaround from Q1's ₹9 Cr net loss. The quarter carried a ₹6.7 Cr exceptional charge for employee termination benefits (Note 7) against none in the year-ago quarter; stripping it out, adjusted PAT is roughly ₹36.8 Cr, still down ~45% YoY. Standalone PAT of ₹48.7 Cr (EPS ₹1.21) diverges meaningfully from consolidated PAT of ₹32.2 Cr (EPS ₹0.80) — the ~₹16 Cr gap reflects losses/consolidation drag at the US and manufacturing subsidiaries, a materially different picture between the two bases worth flagging. Operating margin (EBITDA/revenue, computed) recovered sharply to ~21.1% this quarter from ~10.5% in Q1, closing most of the gap to the year-ago 21.9% OPM — tangible evidence that cost actions taken after Q1's biologics-contract loss are working. Net margin, however, stayed compressed at 3.9% versus 7.25% a year ago on the smaller revenue base. Finance costs (₹10.0 Cr) and depreciation (₹111.7 Cr) stayed elevated, consistent with continuing capex — consolidated capital work-in-progress rose to ₹1,140.6 Cr from ₹1,040.4 Cr at FY26-end. Against the ~₹700-750 Cr revenue range flagged in our pre-result preview, the ₹832.7 Cr print is a clear beat; the Street's FY27 EPS consensus of ₹9.90 implied expectations of stabilization, which this quarter's swing back to profit supports, though the YoY profit decline shows the recovery isn't complete. Management's prior guidance (Q1 FY27 call) called for a single-digit FY27 revenue decline, mid-20s EBITDA margins, and a weak H1 with a stronger H2; H1 FY27 consolidated revenue of ₹1,568.7 Cr is down 12.1% YoY from ₹1,785.1 Cr, steeper than the guided full-year decline but consistent with management's own framing that H1 would be the weak half. Margin at 21.1% this quarter remains short of the guided mid-20s band but is trending toward it, so guidance looks on track rather than missed or beaten outright. The quarter also saw continued leadership churn — Head of Corporate Affairs resigned September 21, 2026, following director Kush Parmar's July 29, 2026 exit — alongside the ongoing voluntary liquidation of subsidiary Syngene Manufacturing Solutions (initiated June 15, 2026). No management press release commentary was available to cross-check against the filing. With H2 needing to outrun H1's -12.1% YoY decline for FY27 to land within the guided single-digit range, and margins still roughly 4pp short of the mid-20s target, Q3 is the next checkpoint for whether this quarter's sequential recovery sustains into FY28's targeted return to profitable growth.