Syngene International Ltd Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kunal Dhamesha - Macquarie Group Ltd - Analyst : Hi, thank you for the opportunity, and congratulations on getting the clinical trial contract for the US market. So the first question pertains to the contract. I mean, what type of capabilities have we set up in the US market for this, and how are we differentiating from the existing players in this space such as IQVIA, I believe, provides clinical trial solutions? And how does the economics of these kinds of projects work? That would be the first question.

Question: Kunal Dhamesha - Macquarie Group Ltd - Analyst : Yes, actually, I wanted to understand more about how these kinds of projects fare in terms of their potential, let's say, revenue upside versus the typical research projects that we take. Not just for this particular project, but how do clinical projects fare against, let's say, the commercial manufacturing or the services projects that we take, just from the business angle perspective?

Question: Kunal Dhamesha - Macquarie Group Ltd - Analyst : Okay, that's helpful. Second one on the ADC and peptide, where we are adding capacities. So what kind of visibility have we got there to kind of utilize the capacities that we are adding in, if you can provide some color there?

Question: Kunal Dhamesha - Macquarie Group Ltd - Analyst : Sure, and lastly, if I may just squeeze in, I think our press release mentions no recovery in biotech funding. We have seen some green shoots there, and our research service anyway has done decently well in first half. So do you expect meaningful acceleration if the biotech funding comes back in the second half from here on?

Question: Kunal Dhamesha - Macquarie Group Ltd - Analyst : Great. Thank you and all the best.

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Thank you for taking my question. Just the first one on the split of the revenues, I think in Q1 you disclosed some either large molecule, or if you're doing it CRO versus CDMO, if you could kind of give us that for the quarter and for the year ago, please. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 8:30AM, SYNN.NS - Q2 2026 Syngene International Ltd Earnings Call

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Deepak, there was some disturbance, so 67% of CRO versus 63% last year.

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Okay, no, I'm just trying to get the numbers right. So, and this is Q2 over Q2, right, not H1 versus H1 something like that.

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Okay, so that clearly shows that, I can do the math later because I'm not able to see the number in front of me, but so research services has grown, positive growth I would imagine, higher than whatever the quarterly growth is, right? So how does this now pan into the second half per se? Do we continue to see -- what are some of the leading indicators on the research services that gives you the confidence that we can keep this momentum going.

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Understood. Understood. No, not to worry. So let me then flip the question around. So, we have seen again, I think the manufacturing services decline, and is it largely led by just the destock of, say, the biologic, or is there maybe core business if you were to separate that out this quarter or last quarter? How do you think that is progressing and anything that you want to add on what's happening at the Mangalore API plant? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 8:30AM, SYNN.NS - Q2 2026 Syngene International Ltd Earnings Call

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Mangalore API plant, (multiple speakers) small molecules manufacturing sercice.

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Got it. Last question, Deepak and team, just on our overseas facilities, the acquisitions that we've done, how are they tracking either in terms of recruitments, and also in terms of the pre-op expenses? When do we think monetization starts?

Question: Shyam Srinivasan - Goldman Sachs Group Inc - Analyst : Thank you so much.

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Hi, good afternoon. Thanks for the opportunity. I see a write-off of around INR28 crores, related to unrecoverable receivables, in the footnotes. So

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Okay, got it. And on the Bayview facility, you noted your comment about commissioning this facility in the second half. And then we're also hearing about a lot of push from the US administration towards local manufacturing. So do we expect the ramp-up in the order book to be faster than our initial expectations here? And then if you've had any conversations with clients, any takeaways from those. Also, any update on the order book, how that's shaping up at Unit 3?

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Thanks. Just a quick one on the Phase 3 clinical trial contract that we won. So given that this is a new foray and so far we've largely focused on BAB studies and early-stage trials, does this foray entail some investments from our side to get into these large Phase 3 trials?

Question: Harith Ahamed - Spark Capital Advisors (India) Pvt Ltd - Analyst : Thanks, Peter. Thanks for taking my questions. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 8:30AM, SYNN.NS - Q2 2026 Syngene International Ltd Earnings Call

Question: Alankar Garude - Kotak Securities Ltd - Analyst : Hi, good afternoon, everyone. So just to follow up on the clinical trials as well. Wanted to understand what prompted the decision to get into this. And we haven't had a minimal presence in this for the last many years, but just in terms of timing, what exactly was the factor which prompted this decision to get into a larger presence within clinical trials now? And maybe a second question there is from a regulatory standpoint, particularly in India, do you think the overall environment is now more conducive to conduct global clinical trials?

Question: Alankar Garude - Kotak Securities Ltd - Analyst : So the second one, Peter, was on -- from a regulatory standpoint in India, do you think the environment is now more conducive because there have been challenges in the past? Has anything changed as far as the regulatory environment for clinical trials in India is concerned?

Question: Alankar Garude - Kotak Securities Ltd - Analyst : That's helpful, Peter. The second one is, can you comment on the peptide facility you spoke about in Mangalore, more details in terms of the investment entailed, how much capacity you are looking to create? Is this more of restructuring of your existing facility, or it's more brownfield, possible to share any such details?

Question: Alankar Garude - Kotak Securities Ltd - Analyst : And possible to share details, so Peter, investment entails or how much capacity you're looking to create, timelines?

Question: Alankar Garude - Kotak Securities Ltd - Analyst : Understood. Yeah, that's it from my side. Thank you.

Question: Madhav Marda - Fidelity - Analyst : Yeah, hi, good afternoon. I had a very basic question. This global Phase 3 clinical trial which we're doing, could you just, like -- just very basic, help me understand what is the source of revenue for Syngene? Like, will we be generating revenue from helping recruit for the trial itself and also supply sort of the trial quantities from a facility, or how does it work? Sorry, it may be very basic question.

Question: Madhav Marda - Fidelity - Analyst : Okay. So this is not linked to the new biologic facilities that you're setting up. It's not linked to supplying some quantity from there and (multiple speakers) separate business altogether.

Question: Madhav Marda - Fidelity - Analyst : Okay, understood. Thank you for that. And just want to understand that on the Ellis unit as well, which we acquired some time back, any comments on the ramp-up timeline said, that was part one. And secondly, on the Zoetis sort of the contract as well that we have, when do we expect the, -- like do we -- when does the restocking end? Like when do we expect the supplies to restart for that project? Thank you.

Question: Madhav Marda - Fidelity - Analyst : The large molecule destocking here.

Question: Madhav Marda - Fidelity - Analyst : Would it be fair to understand that this can come back in fiscal year 2027, or that's yet to be discussed and confirmed?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Yes, sir, good afternoon. Thank you for the opportunity. Sir, is there expansion of your role with the innovator on the animal health biologic product? Are there more such products, because at that time you had also talked about more products for the same clients. So just how should we think about that opportunity, even while this destocking sort of continues?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Is this like a near-term event, Peter, as in next 12 months kind of an event, the expansion of the product portfolio for the client? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 8:30AM, SYNN.NS - Q2 2026 Syngene International Ltd Earnings Call

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Understood. Thank you so much for that. And the second one was on the -- while I understand you won't give an FY27 outlook, but when I look at history, typically you've never had more than two years of single-digit growth, and FY26 will be the third year of single-digit growth. Typically, that has been followed with a very strong following year. Is this the kind of expectation you want investors to go back with just looking at history? Last 15, 20 years, it looks like after a couple of years of single-digit growth, you come back fairly strongly. Especially in context of the last three years which have had soft growth, but you've continued to invest in capacities as well as capabilities. So just in that context, some color around, without getting into numbers, some color around FY27 outlook should be helpful because if I look at history, clearly looks like FY27 and FY28 should be very strong years.

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Just a follow-up on that, Deepak, is there any reason to believe this time around it is different?

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Recent versus history.

Question: Chirag Dagli - DSP Mutual Fund - Analyst : Understood. Thank you so much. Best of luck.

Question: Aditya Cheda - Incred Asset Management - Analyst : Hi, afternoon. Couple of questions. First, on, the overall, return on equity profile for the company, directionally has been a double whammy of lower asset turns and even lower PAT margins. If you can sort of, share your outlook considering you have invested roughly $200 million over the last two years. How do you sort of place your incremental capital allocation to improve this, and if you can share what kind of investments are you looking for in FY26 and FY27. These are the first questions.

Question: Aditya Cheda - Incred Asset Management - Analyst : Got it. Can you call the capital investments that you're looking to do over the next two years in (multiple speakers) number? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 8:30AM, SYNN.NS - Q2 2026 Syngene International Ltd Earnings Call

Question: Aditya Cheda - Incred Asset Management - Analyst : Got it. And the last question is, you can correct me if I'm wrong, the human clinical trial business margins are typically lower than the general drug discovery business. Is that true, or, it should be, it would be fair to make that difference?