Zydus Lifesciences concluded fiscal year 2026 on a high note, delivering strong double-digit growth across key business segments. Consolidated annual revenue reached ₹271.5 billion, a 17% year-on-year increase, while operating profit grew by 20% to ₹84.8 billion. The company achieved an EBITDA margin of 31.2% for the year. Management expressed confidence in future growth, driven by specialty portfolios, innovative product launches, and successful international expansion in consumer wellness and medical devices.
Financial Highlights for FY26
For the fiscal year ended March 31, 2026, Zydus Lifesciences reported impressive financial outcomes. Consolidated revenues soared to ₹271.5 billion, representing a 17% year-on-year increase. Operational efficiency remained a priority, with the company achieving an EBITDA margin of 31.2% and a consolidated EBITDA of ₹84.8 billion, up 20%. Adjusted net profit for the year rose to ₹54.6 billion, reflecting a 15% growth. The company maintains a healthy balance sheet with a net debt to EBITDA ratio of 0.5x.
Fourth Quarter Performance
The fourth quarter (January–March 2026) saw consolidated revenues reach ₹75.9 billion, a 16% year-on-year increase. Operating profitability showed significant improvement, with an EBITDA margin of 33.7%—a 110 basis point increase year-on-year. Quarterly EBITDA stood at ₹25.6 billion, while adjusted net profit reached ₹15.9 billion, up 15% from the previous year.
Segment-Wise Business Growth
The North American business reported quarterly revenues of ₹29.5 billion, driven by base business volume expansion and new launches. In India, the branded formulations business outperformed the market with 15% year-on-year growth, with the chronic segment accounting for 46.3% of the portfolio. The Consumer Wellness segment saw a robust 61% year-on-year revenue increase to ₹14.6 billion, supported by the integration of Comfort Click Limited. Meanwhile, the Medical Devices vertical registered ₹3.3 billion in revenue as the company establishes it as a core business pillar.
Strategic Outlook and Innovation
Zydus continues to pivot toward high-margin specialty products. The company is accelerating its US oncology strategy through the proposed acquisition of Assertio Holdings and the successful launch of Zycubo for rare disease treatment. On the innovation front, the company received approval for Desidustat in China and is advancing its biosimilar and 505(b)(2) pipelines. Management anticipates continued high-teens revenue growth in FY27, with margins expected to remain in excess of 24%, supported by disciplined investment and operational leverage.
Source: BSE
