Biocon sees strong Q2 growth, moves to reduce debt

Biocon Limited reported a strong Q2 FY26, with consolidated operating revenue increasing 20% year-on-year to Rs 4,296 crore. PBT (before exceptional items) surged 153% to Rs 183 crore. Growth was primarily driven by Biosimilars, which saw a 25% YoY increase to Rs 2,721 crore, and Generics, up 24% YoY to Rs 774 crore. The CRDMO segment contributed Rs 911 crore, a 2% YoY increase.

The company also announced the early full redemption of 50,000 unlisted, secured, rated, redeemable Non-Convertible Debentures (NCDs) of face value Rs. 1,00,000 each, totaling Rs. 500 Crores, issued on May 19, 2023. Additionally, Biocon plans to acquire 1,06,86,044 Compulsorily Convertible Debentures (CCDs) of Biocon Biologics Limited (BBL) from ESOF III Investment Fund and EAAA India Alternatives Limited, valued at Rs. 10 each and aggregating to Rs. 300 Crores, to increase its holding in BBL by approximately 65 basis points.

The board approved the issuance of Commercial Papers up to Rs. 550 Crores on a private placement basis. These strategic financial maneuvers are expected to strengthen Biocon's balance sheet, enhance financial flexibility, and improve profitability, with the full impact of reduced interest costs anticipated in FY27.