Zydus Lifesciences Limited, headquartered in Ahmedabad, has announced its unaudited consolidated financial results for the second quarter (Q2) and first half (H1) of the financial year 2027, ending on 30th September 2026. The company reported a significant increase in revenue but faced declines in profit and EBITDA margins.
For Q2 FY27, Zydus Lifesciences recorded a revenue from operations of ₹79,096 million, marking a 29% increase compared to the same period last year. However, the company’s EBITDA for the quarter decreased by 6% year-on-year to ₹18,945 million, with the EBITDA margin standing at 24.0%. Net profit for the quarter also saw a decline, falling by 27% year-on-year to ₹9,255 million. The company attributed part of its financial performance to increased investments in research and development, which amounted to ₹6,573 million, representing 8.3% of its revenues.
In the first half of FY27, Zydus Lifesciences reported a revenue of ₹159,266 million, a 25% increase over the previous year. Despite this growth, the company’s EBITDA decreased by 7% year-on-year to ₹38,239 million, with a consistent EBITDA margin of 24.0%. The net profit for H1 FY27 was ₹18,859 million, a decline of 31% compared to the same period last year. The company’s net debt to equity ratio stood at 0.19x as of 30th September 2026, while the net debt to EBITDA ratio was 0.62x.
The company’s performance was driven by its branded businesses in India, international markets, and wellness sectors. Notably, the share of branded sales in the US increased to 16%, reflecting a strategic shift towards a differentiated, specialty-led portfolio. Zydus Lifesciences is also anticipating the approval and launch of Saroglitazar in the US, which would be its first indigenously discovered new chemical entity (NCE).
Market analysts note that while Zydus Lifesciences has demonstrated strong revenue growth, the decline in profitability and margins suggests challenges in cost management and competitive pressures. The company’s focus on innovation and specialty products could provide long-term growth opportunities, but it will need to address current profitability concerns to enhance shareholder value.
