Zydus Lifesciences reported a strong start to FY27 with Q1 revenues surging 22% year-on-year to ₹80.2 billion. The company achieved a robust EBITDA margin of 24.1%, with EBITDA standing at ₹19.3 billion and net profit at ₹9.4 billion. Key business segments, including pharmaceuticals and consumer wellness, demonstrated significant growth, driven by new product launches and market expansion initiatives.
Zydus Lifesciences Reports Strong Q1 FY27 Performance
Zydus Lifesciences has commenced FY27 with robust double-digit growth, building on a formidable base from the previous year. The company announced its financial results for the first quarter ended June 30, 2026, highlighting significant year-on-year increases in revenue and profitability.
Financial Highlights
Consolidated revenues for the quarter stood at ₹80.2 billion, marking a substantial 22% increase compared to the same period last year. The company maintained strong operating profitability with an EBITDA margin of 24.1%. Consequently, EBITDA for the quarter reached ₹19.3 billion, while net profit was reported at ₹9.4 billion. The net debt to EBITDA ratio remained healthy at 0.7 times as of June 30, 2026.
Segmental Performance Overview
Pharmaceuticals
The Indian branded formulations business continued its market outperformance with a strong 20% year-on-year growth. This growth was broad-based across super-specialty, chronic, and acute segments, with notable acceleration in cardiology, diabetology, gynecology, anti-infectives, pain management, oncology, and nephrology therapies. Internationally, the formulations business posted revenues of ₹9.7 billion, a 34% year-on-year growth, driven by strong demand and focused execution. The North America business, comprising the US and Canada, reported resilient revenues of ₹31 billion, up 5% quarter-on-quarter. The US generics front saw 5 ANDAs filed, 9 approvals received, and 11 new products launched. A significant development was the launch of Nufymco™ Injection (Ranibizumab), the first biosimilar in the US market, and the acquisition of Assertio Holdings to strengthen the US specialty platform.
Consumer Wellness
The Consumer Wellness business recorded revenues of ₹14.3 billion, an impressive 67% year-on-year growth. The international business saw a like-to-like growth of 25%, while the domestic business grew by 5%. Skin & hair care and food & nutrition segments within the domestic portfolio showed strong momentum with 35% and 16% growth, respectively.
Medical Devices
In the medical devices space, revenues for the quarter were ₹2.8 billion. The company is investing in enhancing capabilities within focused therapies to create differentiated value.
Operational Developments
The injectable manufacturing facility at Zydus Biotech Park received a Voluntary Action Indicated (VAI) classification following a GMP surveillance inspection. Additionally, the company entered into a joint venture agreement with Sunshine Healthcare to establish a pharmaceutical manufacturing facility in Sri Lanka, aimed at strengthening local production and reducing import dependence.
Innovation Pipeline Updates
On the NCE research front, the USFDA granted priority review to the new drug application for Saroglitazar Magnesium for primary biliary cholangitis. Regulatory approval was received in India to initiate Phase III clinical trials of Desidustat for sickle cell disease. In biotech R&D, a Phase III clinical trial for the second ADC Biosimilar was initiated in India. The vaccines R&D saw the completion of a Phase II trial for a bivalent typhoid conjugate vaccine and the initiation of a Phase I trial for a chikungunya vaccine. The MR vaccine dossier was submitted to the WHO and accepted for review.
Q&A Highlights
During the Q&A session, management confirmed the guidance for strong double-digit growth for the full year, with India expected to perform better than the market. The growth in progressive and chronic portfolios was highlighted as a key driver. Management also discussed increased investments in Saro and other initiatives, while maintaining the 24%+ margin guidance. Capex guidance for the full year is set at ₹1,500-₹1,600 crores. The US business is projected for sustained growth, with real meaningful scale-up expected around calendar year ’29. Investments in specialty, biosimilars, and MedTech are baked into current margin guidance, with an aim to improve EBITDA margins to 28-30% in the medium term.
Source: BSE
