Zydus Lifesciences Reports Q1 FY27 Results: Revenue Rises 22% As Net Profit Declines 36%

Zydus Lifesciences Reports Q1 FY27 Results: Revenue Rises 22% As Net Profit Declines 36%​

Zydus Lifesciences Limited announced its unaudited consolidated financial results for the first quarter of Fiscal Year 2027, highlighting a 22% rise in revenue from operations. The company maintained strong performance in innovation and international markets, though net profit saw a decline of 36% year-on-year.

The consolidated performance figures show that Zydus Lifesciences generated Rs. 80,170 mn in revenue during the quarter. EBITDA for Q1 FY27 was Rs. 19,294 mn, marking an 8% decline year-on-year (YoY), with an associated EBITDA margin of 24.1%. Net Profit for the quarter stood at Rs. 9,398 mn, representing a 35.9% decrease compared to Q1 FY26.

The company reported R&D investment amounting to Rs. 6,424 mn, which constituted 8% of revenues. Organic Capex for the quarter was recorded at Rs. 5,852 mn. As of June 30, 2026, the Net Debt to Equity ratio stood at 0.22x, while the Net Debt to EBITDA ratio was 0.70x.

Consolidated Financial Overview (Q1 FY27)​

The following table details Zydus Lifesciences Limited's consolidated financial performance across key metrics for Q1 FY27 compared to previous periods.

Business Segment Performance Highlights​

The company's business segments demonstrated varying levels of growth and contribution during the quarter. Pharma Business registered revenues of Rs. 60,900 mn, growing by 8.6% YoY and accounting for 78% of consolidated revenues. India Formulations recorded revenue of Rs. 18,158 mn, up 19.5% YoY and constituting 23% of consolidated revenues.

North America Formulations achieved registered revenues of Rs. 30,979 mn, reflecting a 2.6% decline YoY but showing a 4.9% increase quarter-over-quarter (QoQ). This segment accounted for 40% of the company's consolidated revenue. Key achievements in the US generics space included filing 5 ANDAs, receiving approval for 9 ANDAs (including 4 tentative approvals), and launching 11 new products. On the specialty front, Zydus launched NUFYMCO™ (Ranibizumab) injection, its first biosimilar in the US market, and completed the acquisition of Assertio Holdings. In Canada, the company secured 2 ANDS approvals and launched 2 new products.

International Markets Formulations generated Rs. 9,735 mn, showing a robust 34% growth YoY and representing 12% of consolidated revenues. Meanwhile, the Consumer Wellness business saw registered revenues reach Rs. 14,292 mn, up 67.2% YoY and contributing 18% to the total revenue.

The API business recorded sales of Rs. 1,804 mn, an increase of 14.5% YoY. The MedTech segment contributed Rs. 2,828 mn (4%). Alliances & Others registered revenues of Rs. 224 mn, which declined by 11.1% YoY and accounted for 0.3% of consolidated revenues.

Innovation and R&D Pipeline Updates​

Zydus Lifesciences reported several advancements across its innovation pipeline in various therapeutic areas:

NCE Research:

• The USFDA granted priority review to the New Drug Application (NDA) for Saroglitazar Magnesium, intended for Primary Biliary Cholangitis (PBC).
• The company received regulatory approval in India to initiate Phase III clinical trials of Desidustat for patients with sickle cell disease.

Biotech R&D and Vaccines:

• Phase III clinical trials have been initiated in India for the second biosimilar antibody drug conjugate.
• In vaccines, Phase II clinical trials of bivalent Typhoid Conjugate vaccine were completed, and Phase I clinical trials of Chikungunya vaccine commenced in India. Zydus also submitted the Measles and Rubella (MR) vaccine dossier to the World Health Organization (WHO), which was accepted for review.

Other Operational Updates:
* The company entered into a joint venture agreement with Sunshine Healthcare Lanka Limited to establish a pharmaceutical manufacturing facility in Sri Lanka, aiming to bolster local production and reduce import dependence for the country.

ZYDUSLIFE Stock Price Movement​

Shares of Zydus Lifesciences Limited are edging higher to ₹1136 as of 1:43 PM today, gaining 1.52% in live trading with a solid movement. The stock sees considerable activity, having registered a total traded volume of 2.96 million shares during the current market session.