Zydus Lifesciences (ZYDUSLIFE) Q2 25/26 earnings summary

Executive summary

• Achieved robust financial performance in Q2 FY2026, with consolidated revenues reaching INR 61.2 billion, up 17% YoY, and net profit at INR 12.6 billion, up 38% YoY, driven by strong growth across India, US, and international markets.

• Expanded international presence through the acquisition of Comfort Click Limited in the UK, entering the high-growth VMS segment, and completed 100% acquisition of Amplitude Surgical, strengthening the medtech portfolio.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, following Audit Committee recommendations.

Financial highlights

• Consolidated revenues reached INR 61.2 billion, up 17% YoY; EBITDA margin improved to 32.9% (up 500 bps YoY); EBITDA at INR 20.2 billion, up 38% YoY; net profit at INR 12.6 billion, up 38% YoY.

• Consumer wellness revenues grew 31% YoY to INR 6.4 billion; international formulations up 39% YoY to INR 7.5 billion.

• R&D expenses were INR 4.82 billion, 7.9% of revenues; net gain on foreign currency transactions was INR 4.14 billion.

Outlook and guidance

• On track to achieve targeted top-line growth and profitability for FY2026, with guidance for 26%+ operating margin for the year, and over 25 product launches in the US expected.

• Preparing to file NDA for Saroglitazar Magnesium with USFDA in Q4 FY26 after positive Phase 2/3 results; regulatory approval received to initiate Phase II clinical trials of Bivalent Typhoid Conjugate Vaccine in India.