Shares of Biocon jumped nearly 8 percent in early trade on May 24, buoyed by the drugmaker's robust fourth-quarter earnings.

The drugmaker on Tuesday reported a 31.3 percent rise in fourth-quarter net profit to Rs 313.20 crore, surpassing a CNBC-TV18 estimate of Rs 234 crore.

A similar beat was seen in the revenue front as the topline recorded a 56.7 percent surge to Rs 3,773.9 crore, also topping an estimate of Rs 3,611.7 crore.

Rise in revenue was led by the over two-fold growth in the biosimilars business, which also contributes 56 percent on the total topline. Immunosuppressants, specialty APIs (active pharmaceutical ingredients), and a ramp-up of some recently launched generic formulation products also aided the strong topline.

In addition, operating metrics also improved as the EBITDA margin expanded to 26.4 percent during January to March from 24.6 percent a year ago.

"Going ahead, we will be integrating the newly acquired business Vitaris in a phased manner with over 70 emerging market transitioning to Biocon Biologics shortly followed by the US and EU thereafter. FY24 will also see several important new launches, a key driver of growth," Shreehas Tambe, Chief Executive Officer and Managing Director of arm Biocon Biologics stated in an exchange filing.

Brokerage firm ICICI Securities also maintains a positive view of the stock. The firm believes that progress on the biosimilars front in the backdrop of significant high leverage on the balance sheet will be the key determinant for investors sentiments.