Shares of Biocon plunged 9 per cent in Monday's opening trade, but recovered most losses as the session progressed, following the pharma major's March quarter results. The Bengaluru-based firm delivered in-line revenue for the quarter, with Ebitda coming in better than expected Street expectations. That said, as MOFSL noted, earnings were in line with estimates for the quarter due to higher-than-expected interest cost and lower other income. Biosimilars and generics led robust revenue growth, while Syngene (CRDMO) dragged the overall performance for the March quarter, analysts noted. They largely remained positive on the stock post Q4 results.

The stock fell 8.54 per cent to hit a low of Rs 348.05 at open. It later recovered and was trading 0.67 per cent lower at Rs 378. 

Nuvama said Q4FY26 growth moderated as Biocon upgraded facilities to scale up capacity in response to anticipated demand in the US and Europe. It said th Biosimilars business has key triggers in the US such as continued traction in Yesintek market share gains; recent launch of Denosumab biosimilar; and launch of Aflibercept in H2FY27 that it said is the most important trigger. 

"In Europe too, Biocon expects continued traction in Yesintek due to ongoing ramp-up and recent approval in Switzerland and auto-injector approved in the UK. Moreover, the company has also launched Denosumab in Germany while Abevmy and Ogivri have continued to scale-up. Considering the improvement in the biosimilar business and the company’s focus on profitable growth, over FY26–28E, Biocon conservatively can see 200bp margin expansion. We think biosimilar revenue can grow at a 21 per cent CAGR. Potential improvement in Syngene can be a positive trigger for Biocon’s performance," Nuvama said.

MOFSL suggested 'Buy' on the stock, saying Biocon is an inflection point and offers better outlook from FY27 onwards. It sees 16 per cent growth in biosimilar and 18 per cent growh in sales in the generic segment. This, it feels, would be driven by new launches, scale-up of existing products, and capacity increase to support in-house production.

Nuvama said Biocon’s revenue and Ebitda are likely to grow at 17 per cent and 23 per cent. It said PAT growth would be higher, driven by the lower interest cost due to debt repayment. We look forward to synergy benefits after the recent merger with BBL. 

MOFSL said Biocon is now behind in terms of the capex phase for its biosimilar and generics segment. Further, the product pipeline remained promising in terms of commercialised as well as under development. Biocon continued to strengthen as well as widen its market presence. Reiterate BUY