Zydus Lifesciences (ZYDUSLIFE) Q1 25/26 earnings summary

Executive summary

• Achieved 6% year-on-year revenue growth in Q1 FY 2026, with net profit up 3% to INR 14,668 million and stable EBITDA margin at 31.8%.

• India branded Formulations outpaced market growth, while U.S. and International businesses delivered strong, broad-based growth.

• Consumer Wellness business was resilient despite early monsoon challenges impacting seasonal brands.

• Regulatory milestones achieved with USFDA EIRs for API facilities.

• Board approved unaudited financial results for Q1 FY26, with Deloitte confirming no material misstatements.

Financial highlights

• Consolidated revenues reached INR 65,737 million, up from INR 62,075 million year-on-year.

• EBITDA margin stood at 31.8%, with EBITDA at INR 20,900 million.

• Net profit was INR 14,668 million, up from INR 14,199 million year-on-year.

• Net cash position improved to INR 56,312 million as of June 30, 2025, from INR 48,836 million at March 31, 2025.

• Gross margin at 72.8% in Q1 FY26, slightly down from 74.4% in Q1 FY25.

Outlook and guidance

• Maintains guidance of single-digit growth in U.S. for FY 2026, expecting 30+ product launches including injectables.

• For FY 2027, growth will depend on pipeline launches, especially 505(b)(2) products, with more clarity expected by end of FY 2026.

• EBITDA margin guidance remains above 26% for the year.

• International markets expected to sustain high teens to mid-20s percentage growth.

• Focus on expanding presence in emerging and developed markets, with continued investment in R&D and innovation.