Zydus Lifesciences (ZYDUSLIFE) Q1 26/27 earnings summary

Executive summary

• Consolidated revenues reached INR 80.2 billion (Rs. 80,170 mn) for Q1 FY 2027, up 22% year-over-year, with strong growth across India, international, and consumer wellness segments.

• EBITDA margin stood at 24.1% with EBITDA of INR 19.3 billion, while net profit was INR 9.4 billion, down 35.9% year-over-year due to higher expenses and margin pressure.

• Net debt to EBITDA ratio improved to 0.7x as of June 30, 2026, and net debt stood at Rs. 59,041 mn.

• Branded formulations in India grew 20% year-over-year, outperforming the market, with chronic and sub-chronic portfolio contribution rising to 54.2%.

• Major acquisitions completed, including Assertio Holdings (USA), Comfort Click (UK), and Amplitude Surgical (France), with significant regulatory milestones and a major equity buyback.

Financial highlights

• Consumer wellness business revenues reached INR 14.3 billion, up 67% year-over-year; medical devices segment registered INR 2.8 billion in revenues.

• Gross margin was 72.1%, slightly down from 72.8% a year ago, impacted by settlement costs; EBITDA margin declined to 24.1% from 31.8% year-over-year.

• R&D expenses increased 32.3% year-over-year to Rs. 6,424 mn, 8% of revenues.

• Net working capital reduced to Rs. 56,971 mn from Rs. 86,143 mn year-over-year.

• Capex for the quarter was Rs. 5,852 mn, including one-off investments and ongoing facility expansions.

Outlook and guidance

• Maintains guidance for strong double-digit revenue growth for FY 2027, with India business expected to grow mid-teens and international/U.S. business in single digits.

• EBITDA margin guidance remains at 24%+ for the year, despite increased investments in Saroglitazar and recent acquisitions.

• CapEx guidance for FY 2027 is INR 1,500–1,600 crore, focused on facility expansions, R&D, and wellness land acquisition.

• Branded portfolio expected to exceed two-thirds of total revenue over the medium term, driving higher profitability and margin expansion to 28–30% by FY 2030.

• Ongoing investments in R&D and new product launches expected to drive future growth.