Biocon (BIOS IN) Buy: On a firm footing for growth [Correction]

Research evidence excerpt

Biocon (BIOS IN) Buy: On a firm footing for growth [Correction]

Equities ● Pharmaceuticals

11 May 2026

Key highlights from 4QFY26 earnings call

◆ Biosimilars revenue at INR27.6bn (c59% of 3Q revenue) recovered 10.4% q-o-q in 4QFY26

after a temporary blip due to platform upgrade in 3Q. Biosimilar revenue grew 11.9% y-o-y.

◆ Regional revenue split for the biosimilars segment is 40% from the US, 35% Europe and 25%

from RoW markets during FY26.

◆ Execution of new launches (ustekinumab, denosumab, insulin aspart, bevacizumab and

aflibercept) will be key to sustain growth momentum for biosimilars revenue.

◆ Its expects significant pick-up in supplies for insulin products (including aspart) after doubling

capacity at the Malaysia insulin plant. The expansion of drug product (formulation) capacity is

completed while the company expects to complete expansion for the drug substance capacity

by end of FY27e.

◆ The company is set to launch biosimilar aflibercept in the US in 2HCY26 as per its settlement

agreement with the innovator. Success of a competitor biosimilar validated market acceptance

for biosimilars for opthalmology use as per the management.

◆ Biocon’s investment in manufacturing capacity is largely completed and it doesn’t see need to

invest in any greenfield facilities ahead.

◆ It has no major growth capex planned in FY27 and FY28 and it expects to incur only

maintenance capex below USD200m (FY25/26 capex: USD274/195m) and this should help to

improve cash flows.

◆ R&D spend was INR2.8bn in 4QFY26 (6% of the revenue).

1. Biocon 4QFY26 results summary

Actual vs

(INRm) 4QFY26 4QFY26e HSBC est. 4QFY25 y-o-y 3QFY26 q-o-q

Revenues 45,166 43,361 4.2% 44,170 2.3% 41,730 8.2%

Other op. income

Materials costs 13,993 15,364 -8.9% 14,729 -5.0% 13,393 4.5%