Zydus Lifesciences Limited submitted an investor presentation containing unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27) to BSE Limited and National Stock Exchange of India Limited under Regulation 30 read with Regulation 46 of SEBI Listing Regulations.

Financial Performance Highlights

  • Revenues from Operations: ₹80,170 million, representing 22% year-over-year (YoY) growth
  • EBITDA: ₹19,294 million with EBITDA margin of 24.1%, representing a decline of 770 basis points YoY
  • Net Profit: ₹9,398 million, representing a decline of 35.9% YoY
  • R&D Expenses: ₹6,424 million (8% of revenues), representing 32.3% YoY growth
  • Organic Capex: ₹5,852 million for the quarter
  • Net Debt: ₹59,041 million as of June 30, 2026
  • Net Debt to EBITDA Ratio: (0.80)x

Business Segment Performance

India Formulations Business:

  • Branded business grew 20% YoY, outperforming the Indian Pharmaceutical Market (IPM)
  • Outperformed IPM in key therapies including Cardiology, Diabetology, Gynaecology, Anti-infectives, Pain Management, Oncology, and Nephrology
  • Improved ranking in Cardiology, Diabetology, and Pain Management therapies
  • Maintained leadership position in Oncology therapy
  • Chronic and sub-chronic portfolio share reached 54.2% (360 bps improvement over 4 years)

North America Formulations Business:

  • US Generics contributed 40% of business
  • Base business gained market share driven by volume expansion and new launches
  • Received USFDA approval for Indocyanine Green for Injection with 180-day CGT exclusivity
  • Launched 11 new products during the quarter
  • Filed 5 ANDAs and received approval for 9 ANDAs (including 4 tentative approvals)
  • US Specialty: Launched NUFYMCO (Ranibizumab) injection, the company's first biosimilar in the US market
  • Completed acquisition of Assertio Holdings Inc. to strengthen specialty presence
  • Canada: Received 2 ANDS approvals and launched 2 new products

International Markets Formulations Business:

  • Growth was broad-based across Emerging Markets and Europe
  • Emerging Markets adopted focused, therapy-led approach
  • Europe focused on portfolio broadening and market coverage enhancement

Consumer Wellness Business:

  • Domestic business grew 5% YoY
  • Skin & hair care brands grew 35% YoY
  • Food & nutrition brands grew 16% YoY
  • Seasonal brands declined due to softer summer season
  • Organized channel saliency reached 38% (Modern Trade: 17%, E-commerce: 21%)
  • International business including CCL delivered 25% YoY growth on like-to-like basis
  • Key brands maintained dominant market share in India

Innovation and R&D Updates

NCE Research:

  • USFDA granted priority review to New Drug Application (NDA) of Saroglitazar Magnesium for treatment of Primary Biliary Cholangitis (PBC)
  • Received regulatory approval in India to initiate Phase III clinical trials of Desidustat in patients with sickle cell disease

Biotech R&D:

  • Initiated Phase III clinical trials in India for second biosimilar antibody drug conjugate

Vaccines R&D:

  • Completed Phase II clinical trials of bivalent Typhoid Conjugate vaccine
  • Initiated Phase I clinical trials of Chikungunya vaccine in India
  • Submitted dossier of Measles and Rubella (MR) vaccine to WHO (accepted for review)

Other Business Updates

  • Injectable manufacturing facility at Zydus Biotech Park received Establishment Inspection Report (EIR) with Voluntary Action Indicated (VAI) classification following GMP surveillance inspection in April-May 2026
  • Entered into joint venture agreement with Sunshine Healthcare Lanka Limited to establish pharmaceutical manufacturing facility in Sri Lanka

ESG Performance

Climate Change:

  • Target: Net Carbon Neutral by 2035
  • 50% energy requirements from renewable sources by 2030
  • Current achievement: 37% renewable energy in total energy mix (74% of FY2026 target)

Water Management:

  • Target: Net Water Neutral by 2028
  • 68% recycle and reuse of treated wastewater
  • 11% reduction in water intensity in FY2026 vs. FY2025

Waste Management:

  • Target: 40% waste disposal via co-processing for India operations by 2026
  • Current achievement: 28% waste disposal via co-processing in FY2026 (70% of target achievement)

Additional Financial Metrics

Exchange Rate Impact:

  • Net foreign exchange gain of ₹577 million in Q1 FY27 (₹500 million gain in Q1 FY26)
  • Included in COGS: ₹8 million gain (₹71 million loss in Q1 FY26)
  • Part of other operating expenses: ₹569 million gain (₹571 million gain in Q1 FY26)

Employee Benefits Expenses: ₹12,491 million (38.4% YoY growth)

Other Operating Expenses: ₹20,132 million (47.5% YoY growth)

Finance Cost: ₹1,560 million (84.2% YoY growth)

Depreciation and Amortization: ₹5,547 million (133.0% YoY growth)

Tax Expenses: ₹3,542 million (18.4% YoY decline)