New biosimilar launches and scaling up of recently launched products are expected to drive growth for Biocon in FY27, as the company pivots from a heavy investment phase towards improving capacity utilization, profitability and margins across its biopharmaceutical businesses, managing director and chief executive Shreehas Tambe told reporters on Friday.
Biocon posted its financial results for the fourth quarter and the full year FY26 late on Thursday.
“We successfully integrated our biosimilars and generics business to create one biopharmaceutical enterprise with greater scale capability and reach…the focus now shifts towards improving utilization of the capacity we’ve built, expanding margins and driving a steady improvement in terms of return on capital employed,” Tambe, who previously headed the biosimilars subsidiary, said.
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Biocon’s growth in FY27 is expected to be driven by new biosimilar launches and the scaling up of recently launched products. The company is shifting focus from heavy investment to improving capacity utilization, profitability, and margins across its biopharmaceutical businesses.
Biocon’s biosimilars business accounted for 60% of its revenue in FY26 and recorded 16% year-on-year revenue growth. The company has seen strong market share gains for its plaque psoriasis biosimilar, Yesintek, in the US, and expects other products like insulin aspart and bevacizumab to support growth.
Biocon has integrated its biosimilars and generics businesses into a single biopharmaceutical enterprise to enhance scale, capability, and reach. The focus is now on improving capacity utilization, expanding margins, and driving profitable growth with sustainable margins.
In April, Biocon launched Bosaya and Aukelso, two biosimilars for the bone-related disorders drug Denosumab, in the US. The company has also received approval for two Denosumab biosimilars from Health Canada.
In FY26, Biocon’s consolidated revenue was ₹16,927 crore, up from ₹15,261.7 crore in FY25. However, net profit dropped to ₹368.8 crore from ₹1,429.4 crore in FY25, impacted by factors like the loss of lenalidomide sales and exceptional items.
Tambe said recently launched biosimilars across markets had begun scaling up and would gather momentum through the year, particularly in the second half of FY27.
In April, Biocon launched Bosaya and Aukelso—two biosimilars for bone-related disorders drug Denosumab, in the US. It has also obtained key approvals including Health Canada’s nod for two Denosumab biosimilars.
Biocon competes with giants like Sandoz, Pfizer, and Amgen in the US biosimilars market.
Tambe also highlighted strong market share gains for plaque psoriasis biosimilar Yesintek, which has already captured nearly a fifth of the market in the US. Other products expected to support growth include insulin aspart and cancer drug bevacizumab.
“You’re going to see multiple products that will drive sales and drive revenues. But the focus will not be just on top line growth or market share. It’ll be about making sure [we] have sustainable margins and profitable growth,” he said.
Biosimilars remain the biggest growth driver for the company, accounting for 60% of its revenue.
Biocon’s consolidated revenue from operations in the fourth quarter was at ₹4,516.6 crore as against ₹4,417 crore in the year-ago period, while its net profit dropped 57% to ₹198.6 crore. The company’s performance was hit by the loss of lenalidomide sales, as compared to the corresponding period last year, as well as exceptional items.
Consolidated revenue from operations in FY26 stood at ₹16,927 crore as against ₹15,261.7 crore in FY25. Its net profit dropped was at ₹368.8 crore, down from ₹1,429.4 crore in FY25.
Biocon’s biosimilars business recorded 16% year-on-year revenue growth during FY26, while Ebitda rose 40% on a like-to-like basis, supported by strong performance in advanced markets, tender wins in emerging markets and an improved product mix.
Ebitda margins in the biosimilars business stood at around 26% during the quarter, with the company expecting further expansion over the medium term as operating leverage improves.
Biocon expects interest cost savings of over ₹300 crore in FY27 following the buyout of minority shareholders in Biocon Biologics and refinancing initiatives to strengthen its balance sheet over the last year, which would directly strengthen its bottom line.
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