Zydus Lifesciences (ZYDUSLIFE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was INR 79,096 mn, up 29.2% YoY; H1 revenue rose 25.4% to INR 159,266 mn.

• Q2 EBITDA was INR 18,945 mn, with a 24.0% margin; reported net profit was INR 9,255 mn, down 26.6% YoY.

• Growth spanned pharmaceuticals and Consumer Wellness; branded businesses reached ~57% of revenue, with a medium-term ambition of two-thirds.

Financial highlights

• Q2 gross contribution rose 29.8% YoY to INR 57,552 mn; gross margin was 72.8%, versus 72.4% a year earlier.

• EBITDA fell 6.0% YoY to INR 18,945 mn; margin was 24.0%, versus 32.9% in Q2 FY26 and 24.1% in Q1 FY27.

• Q2 reported net profit was INR 9,255 mn, down 26.6%; H1 net profit fell 30.9% to INR 18,859 mn.

• Q2 R&D expense rose 36.4% YoY to INR 6,573 mn, or 8.3% of revenue; H1 R&D expense rose 34.3% to INR 12,997 mn.

• Finance cost rose 84.6% YoY to INR 1,870 mn; depreciation and amortization increased 101.3% to INR 6,045 mn.

Outlook and guidance

• FY27 EBITDA margin guidance remains 24%+; H1 margin was 24%, with H2 expected to be similar as saroglitazar spending offsets other contributions.

• India branded formulations are expected to outgrow IPM by 200–400 bps; IPM growth is estimated at 10%–11%.

• U.S. revenue guidance remains single-digit growth on a constant-currency basis against FY26's high base, including the mirabegron impact.

• Saroglitazar launch is expected in March, subject to regulatory review; annual commercial spending, including pre-launch costs, is expected to be ~$100m.

• Saroglitazar is expected to contribute no meaningful revenue in FY28, with ramp-up more likely from FY30; targeted share is 10%–12% by FY30 and 20% longer term.