SYNCOMF - Syncom Formul.
Financial Performance
Revenue Growth by Segment
Pharmaceuticals Drugs & Formulations revenue grew 30.5% YoY to INR 246.98 Cr in H1 FY26. Trading of Commodities revenue fell 72.7% to INR 1.05 Cr. Renting of Property revenue decreased 3% to INR 1.88 Cr.
Geographic Revenue Split
Not disclosed in available documents.
Profitability Margins
Net Profit Margin (based on Total Comprehensive Income) improved to 14.5% in H1 FY26 from 13.0% in H1 FY25. Profit Before Tax (PBT) margin increased significantly to 16.9% from 12.8% YoY.
EBITDA Margin
EBITDA margin is approximately 18.2% for H1 FY26 (INR 45.50 Cr EBITDA on INR 249.90 Cr revenue), up from approximately 15.8% in H1 FY25.
Capital Expenditure
Not explicitly disclosed, but the company accepted a material bid for a commercial property from HDFC Bank in November 2025, indicating significant upcoming investment in fixed assets.
Credit Rating & Borrowing
Borrowing costs are minimal, with finance costs of INR 0.52 Cr in H1 FY26, representing only 0.2% of total revenue.
Operational Drivers
Raw Materials
Active Pharmaceutical Ingredients (APIs) and excipients; specific percentage of total cost not disclosed.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
Infrastructure expansion is planned via the acquisition of a material commercial property from HDFC Bank accepted on November 22, 2025.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company saw an inventory reduction of INR 12.82 Cr, suggesting efficient use of existing stock.
Manufacturing Efficiency
Not disclosed in available documents.
Logistics & Distribution
Not disclosed in available documents.
Strategic Growth
Expected Growth Rate
28%
Growth Strategy
The company is focusing on its core Pharmaceutical segment, which saw 30.5% YoY growth. The acquisition of a material commercial property from HDFC Bank in Nov 2025 suggests expansion of administrative or operational footprint to support this growth. Cost optimization is evident as segment profits grew faster (73.6%) than revenue (30.5%).
Products & Services
Pharmaceutical drugs and formulations (medicines).
Brand Portfolio
Not disclosed in available documents.
New Products/Services
Not disclosed in available documents.
Market Expansion
Not disclosed in available documents.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
The company operates through three wholly-owned subsidiaries: Synmex Pharma Pvt. Ltd., Sante Biotech Pvt. Ltd., and Vincit Biotech International Pvt. Ltd.
External Factors
Industry Trends
The Indian pharmaceutical industry is growing at 10-12% CAGR, but Syncom is outperforming at 30.5% YoY. The industry is moving towards stricter compliance and digital manufacturing.
Competitive Landscape
Operates in the highly competitive Indian generic pharmaceutical market with numerous domestic players.
Competitive Moat
Syncom's moat lies in its integrated manufacturing setup in Pithampur and its ability to scale the Pharma segment profitably (margins improved from 12.5% to 16.6% YoY). This cost leadership is a durable advantage in the generic drug market.
Macro Economic Sensitivity
Low sensitivity to interest rates due to minimal finance costs (0.2% of revenue).
Consumer Behavior
Increasing demand for affordable healthcare and generic formulations.
Geopolitical Risks
Not disclosed in available documents.
Regulatory & Governance
Industry Regulations
Pharmaceutical manufacturing is subject to GMP (Good Manufacturing Practices) and pricing controls under the Drug Price Control Order (DPCO).
Environmental Compliance
Not disclosed in available documents.
Taxation Policy Impact
Effective tax rate is approximately 14% based on H1 FY26 results.
Legal Contingencies
Not disclosed in available documents.
Risk Analysis
Key Uncertainties
Concentration risk in the pharma segment (98.8% of revenue); any regulatory crackdown on manufacturing sites (Pithampur) could halt nearly all revenue.
Geographic Concentration Risk
Not disclosed in available documents.
Third Party Dependencies
Not disclosed in available documents.
Technology Obsolescence Risk
Not disclosed in available documents.
Credit & Counterparty Risk
Receivables quality appears high as trade receivables decreased by INR 5.31 Cr during H1 FY26, indicating effective cash collection.