Biocon ratings reaffirmed on improved financials, strategic growth

ICRA has reaffirmed Biocon Limited's long-term and short-term credit ratings at [ICRA]AA+(Stable) and [ICRA]A1+, respectively, for an unallocated amount of ₹450 crore. This decision, announced on October 30, 2025, underscores ICRA's expectation of continued improvement in the company's credit profile. The reaffirmation considers Biocon's diversified business model across biosimilars, generics, and research services, along with its vertically integrated operations and global footprint.

In FY2025, Biocon's consolidated revenue increased by 10.6% year-on-year to ₹16,319 crore, with the operating profit margin improving to 26.8% from 22.6% in FY2024. This growth was notably supported by a ₹1,057 crore gain from the sale of its branded formulations business. Furthermore, Biocon Biologics Limited (BBL), a subsidiary, refinanced its borrowings in FY2025 through $800m in senior secured notes and a $320m syndicated term loan, significantly reducing future repayment obligations.

Following a successful ₹4,500 crore equity raise via a Qualified Institutional Placement (QIP) in June 2025, Biocon retired structured debt and commercial paper, thereby enhancing its leverage metrics. The company's adjusted net debt to OPBDITA ratio improved to 2.6 times as of March 31, 2025, from 3.5 times on March 31, 2024. These financial strategies are expected to support future product launches and market expansions.