Zydus Lifesciences reported strong Q2 FY26 results, marked by healthy growth across key segments and strategic acquisitions. The US formulations business drove double-digit growth, while the India branded formulations business outperformed market growth. The acquisition of Comfort Click bolstered the consumer wellness space. Consolidated revenues rose by 17% to ₹61.2 billion, with EBITDA up 38% to ₹20.2 billion, demonstrating improved profitability. Focus remains on innovation and expansion in specialty and international markets.
Financial Performance Overview
Zydus Lifesciences delivered a robust financial performance in Q2 FY26, showcasing healthy growth across its key business segments. Consolidated revenues reached ₹61.2 billion, a 17% increase year-on-year. Operating profitability remained strong, with an EBITDA margin of 32.9%, a 500 basis points improvement. Consequently, EBITDA for the quarter stood at ₹20.2 billion, up 38% year-on-year. Net profit for the quarter was ₹12.6 billion, also up 38% year-on-year.
Key Business Segment Highlights
The US formulations business delivered strong double-digit year-on-year growth, driven by volume expansion and new product launches. The India branded formulations business sustained growth momentum, outpacing market growth for another quarter. In consumer wellness, Zydus completed its first international acquisition by acquiring Comfort Click Limited (CCL). The international markets formulations business delivered strong growth, backed by robust execution.
Strategic Developments and Acquisitions
Zydus completed the acquisition of Comfort Click, marking its entry into the high-growth VMS segment. Additionally, the company acquired the remaining 14.4% stake in Amplitude Surgical, completing 100% acquisition. The company received its first Notice of Compliance (NOC) approval in Canada for Varenicline tablets. On the innovation front, positive top-line results were reported from the Pivotal EPICS-III Phase 2(b)/3 trial of Saroglitazar Magnesium.
Innovation and Product Launches
During the quarter, Zydus launched VaxiFlu, India’s first trivalent influenza vaccine. In the US, six ANDAs were filed, four approvals were received, and seven new products were launched. The company launched Beizray, albumin-solubilized docetaxel injection, further strengthening its 505(b)(2) portfolio.
Future Outlook and Strategy
Zydus remains committed to accelerating innovation and expanding its presence in key therapy areas through multiple growth levers. The company is focused on building a diversified portfolio in the US generics market and delivering differentiated solutions in the India branded formulations business. Expansion in digital health and personalized wellness through acquisitions is also a key priority.
Source: BSE
