Biocon jumps 10% in two days after strong Q2 results; brokerages see up to 18% upside ahead; check price target

Biocon shares extended their rally for a second consecutive session on November 13, as the company’s strong September-quarter performance sparked renewed buying interest. The stock rose more than 4 per cent to trade at Rs 423.10 on Thursday, taking its two-day advance to nearly 10 per cent since the Q2 earnings announcement.

For the July–September quarter of FY 2026, Biocon reported a consolidated net profit of Rs 84.5 crore, a sharp turnaround from a net loss of Rs 16 crore in the same period last year. Revenue from operations climbed about 20 per cent year-on-year to Rs 4,295.5 crore, led by a strong showing in the biosimilars segment.

Brokerages turn positive after earnings beat

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JM Financial retained its Buy rating and lifted the target price to Rs 476, implying an upside potential of over 17 per cent. The brokerage said Biocon’s biosimilars business grew an impressive 25 per cent YoY, supported by market share gains and new launches such as bUstekinumab, bAspart, and bBevacizumab.

Axis Securities also maintained a Buy call while raising its target to Rs 450 per share. It expects strong double-digit revenue growth in FY 2026, driven by continued momentum in biosimilars, margin recovery in generics, and steady performance in the CRDMO division. Axis noted that the Rs 4,500 crore QIP and subsequent debt reduction have strengthened the balance sheet, giving Biocon greater flexibility for expansion.

Motilal Oswal echoed this optimism with a Buy rating and a target price of Rs 480, indicating nearly 18 per cent upside. The brokerage believes Biocon is entering a scale-up phase, supported by improving profitability, new launches, and ongoing financial deleveraging.

Global brokerages offer mixed views

Among international houses, Goldman Sachs maintained a Neutral stance but raised its target price to Rs 375, pointing out that the quarter’s performance exceeded expectations mainly due to strength in the generics and biologics segments.

HSBC Research, on the other hand, remained bullish, increasing its target price to Rs 455 with a Buy recommendation. It said the company’s biosimilars business appears to be on the verge of a meaningful turnaround.