Financial Performance Overview

Zydus Lifesciences Ltd. announced its unaudited consolidated financial results for Q2 FY27 and H1 FY27 ended September 30, 2026.

Q2 FY27 Financial Highlights
  • Revenue from operations: Rs. 79,096 mn, up 29.2% YoY (from Rs. 61,232 mn in Q2 FY26) but down 1.3% QoQ (from Rs. 80,170 mn in Q1 FY27).
  • EBITDA: Rs. 18,945 mn, down 6.0% YoY (from Rs. 20,158 mn). EBITDA margin contracted to 24.0% from 32.9% YoY.
  • Profit Before Tax (PBT): Rs. 12,617 mn, down 25.5% YoY (from Rs. 16,942 mn).
  • Net Profit: Rs. 9,255 mn, down 26.6% YoY (from Rs. 12,609 mn) and down 3.6% QoQ (from Rs. 9,604 mn).
  • Research & Development (R&D) investments: Rs. 6,573 mn, representing 8.3% of revenues.
  • Capital Expenditure (organic): Rs. 4,655 mn for the quarter.
H1 FY27 Financial Highlights
  • Revenue from operations: Rs. 1,59,266 mn, up 25.4% YoY (from Rs. 1,26,969 mn).
  • EBITDA: Rs. 38,239 mn, down 6.8% YoY (from Rs. 41,043 mn). EBITDA margin stood at 24.0% compared to 32.3% YoY.
  • Profit Before Tax (PBT): Rs. 26,308 mn, down 27.9% YoY (from Rs. 36,492 mn).
  • Net Profit: Rs. 18,859 mn, down 30.9% YoY (from Rs. 27,277 mn).
  • Research & Development (R&D) investments: Rs. 12,997 mn, representing 8.2% of revenues.
  • Capital Expenditure (organic): Rs. 10,530 mn for the half year.
  • Leverage Position: Net Debt to Equity ratio was 0.19x as of September 30, 2026, while Net Debt to EBITDA stood at 0.62x.

Business-wise Sales Performance

Q2 FY27 Business Segment Performance

| Business Segment | Revenue (Rs. mn) Q2 FY27 | Revenue (Rs. mn) Q2 FY26 | YoY Growth | QoQ Growth |

| Pharma Business | 64,075 | 52,473 | 22.1% | 5.2% |

| - India Formulations | 18,844 | 15,926 | 18.3% | 3.8% |

| - North America Formulations | 33,145 | 27,437 | 20.8% | 7.0% |

| - IM Formulations | 10,009 | 7,513 | 33.2% | 2.8% |

| - APIs | 1,485 | 1,472 | 0.9% | -17.7% |

| - Alliances & Others | 592 | 125 | 373.6% | 164.3% |

| Consumer Wellness | 11,223 | 6,374 | 76.1% | -21.5% |

| MedTech | 2,246 | 1,532 | 46.6% | -20.6% |

| Consolidated Revenues | 77,544 | 60,379 | 28.4% | -0.6% |

H1 FY27 Business Segment Performance

| Business Segment | Revenue (Rs. mn) H1 FY27 | Revenue (Rs. mn) H1 FY26 | YoY Growth |

| Pharma Business | 1,24,975 | 1,08,574 | 15.1% |

| - India Formulations | 37,002 | 31,118 | 18.9% |

| - North America Formulations | 64,124 | 59,254 | 8.2% |

| - IM Formulations | 19,744 | 14,778 | 33.6% |

| - APIs | 3,289 | 3,047 | 7.9% |

| - Alliances & Others | 816 | 377 | 116.4% |

| Consumer Wellness | 25,515 | 14,923 | 71.0% |

| MedTech | 5,074 | 1,552 | 226.9% |

| Consolidated Revenues | 1,55,564 | 1,25,049 | 24.4% |

Business Updates and Operational Highlights

India Formulations Business
  • Revenue: Rs. 18,844 mn, up 18% YoY, accounting for 24% of consolidated revenues
  • Branded formulations business grew 19% YoY
  • Secondary sales growth was 20% YoY with volume and new products accounting for approximately two-thirds of total growth
  • Gained market share in Cardiology, Diabetology, Respiratory, Dermatology, Gastro-Intestinal, Anti-infectives, Oncology and Nephrology
  • Improved ranking in Cardiology, Diabetology, Gastro-Intestinal and Anti-infective therapies
  • Maintained leadership position in Oncology therapy
  • Chronic and sub-chronic portfolio share increased to 56.9%, a 450 bps improvement over the last 4 years
North America Formulations Business
  • Revenue: Rs. 33,145 mn, up 21% YoY and 7% QoQ, accounting for 43% of consolidated revenues
  • In constant currency terms: US$ 347 mn
  • Growth driven by sustained volume expansion in base business and continued scale-up of US specialty business
  • Filed 4 ANDAs, received approval for 12 ANDAs (including 2 tentative approvals), launched 5 new products during the quarter
  • Launched first generic version of Riociguat tablets in October 2026
  • Strong sequential growth in US specialty business driven by Rolvedon® and continued momentum in 505(b)(2) portfolio
  • Share of branded sales in the US has risen to 16%
International Markets Formulations Business
  • Revenue: Rs. 10,009 mn, up 33% YoY, accounting for 13% of consolidated revenues
  • Growth was broad-based across markets supported by strong underlying demand and focused execution
API Business
  • Revenue: Rs. 1,485 mn, up 0.9% YoY, accounting for 2% of consolidated revenues
Alliances & Others
  • Revenue: Rs. 592 mn, up 373.6% YoY, accounting for 1% of consolidated revenues
Consumer Wellness Business
  • Revenue: Rs. 11,223 mn, up 76% YoY, accounting for 14% of consolidated revenues
  • Domestic business grew 29% YoY supported by sustained urban recovery and improving rural demand
  • Skin & hair care portfolio: 37% YoY growth
  • Food & nutrition portfolio: 25% YoY growth
  • International business (including Comfort Click business): 12% growth on a like-to-like basis
MedTech Business
  • Revenue: Rs. 2,246 mn, up 47% YoY, accounting for 3% of consolidated revenues
  • Business is investing in enhancing capabilities in focused segments with long-term growth potential

Operations and Compliance Updates

  • USFDA inspections concluded at SEZ II, Ahmedabad (1 observation) and Moraiya formulations facilities (5 observations)
  • Company is working with regulator to address observations expeditiously
  • Received approval for transdermal patch product at Moraiya facility on October 21, 2026, post-inspection

Innovation Pipeline Updates

NCE Research
  • Presented new analysis from Phase III clinical trial of Saroglitazar Magnesium in Primary Biliary Cholangitis (PBC) at American College of Gastroenterology (ACG) 2026 Annual Meeting
  • Successfully completed EVIDENCES-X™ global Phase II(b) clinical trial of Saroglitazar Magnesium in Metabolic Dysfunction-Associated Steatohepatitis (MASH)
  • Awaiting US approval and launch of Saroglitazar, the company's first indigenously discovered NCE
Biotech R&D
  • Received regulatory approval to initiate Phase III clinical trials for one monoclonal antibody in India
505(b)(2) and Specialty
  • USFDA accepted for review the biologics license application (BLA) of Pembrolizumab biosimilar FYB206 developed by partner Formycon AG
  • This is the first publicly announced Keytruda® biosimilar filing accepted for review in the US
Other Updates
  • Sentynl Therapeutics entered into licensing agreement with Mereo BioPharma for Alvelestat
  • Alvelestat is a late-stage asset being prepared for Phase III development in Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD)

Management Commentary

Dr. Sharvil Patel, Managing Director, stated: "Our Q2 performance reflects strong, all-round momentum, spearheaded by our branded businesses in India, International Markets and Wellness. Notably, the share of branded sales in the US has risen to 16%, underscoring our steady shift towards a more differentiated, specialty-led portfolio. We look forward to the approval and launch of Saroglitazar in the US, our first indigenously discovered NCE, which marks a pivotal point in our evolution. Anchored in patient centricity and supported by robust quality systems, we remain committed to building long-term growth levers and enhancing returns for all our stakeholders."

Earnings Call Details

  • Date: November 4, 2026
  • Time: 3:30 p.m. IST
  • Platform: Zoom
  • Pre-registration link: https://bit.ly/4z8BzVA
  • Transcript will be available at: https://www.zyduslife.com/investorzone