Zydus Q2 profit falls 27% despite 29% revenue growth; consumer wellness sales surge 76%

Mumbai: Zydus Lifesciences reported a 29% year-on-year increase in revenue from operations to Rs 7,909 crore for the September quarter, led by strong growth across its India, international and consumer wellness businesses. However, net profit declined 27% to Rs 925 crore due to rise in expenses. EBITDA fell 6% to Rs 1,894 crore.

The company’s EBITDA margin stood at 24% during the quarter. Research and development expenditure was Rs 657.3 crore, or 8.3% of revenue.

Zydus is also advancing its specialty and innovation pipeline. Saroglitazar is progressing through Phase III development for primary biliary cholangitis (PBC) and metabolic dysfunction-associated steatohepatitis (MASH). The US Food and Drug Administration has accepted the pembrolizumab biosimilar application filed through its partner Formycon.

“The share of branded sales in the US has risen to 16%, underscoring our steady shift towards a more differentiated, specialty-led portfolio,” said managing director Sharvil Patel.

He said the company was looking forward to the approval and launch of Saroglitazar in the US, describing it as its first indigenously discovered new chemical entity.

India formulations revenue grew 18% to Rs 1,884.4 crore, supported by continued traction in oncology, cardiology, diabetology and nephrology. North America revenue increased 21% to Rs 3,314.5 crore, while international formulations recorded 33% growth at Rs 1,000.9 crore.

The consumer wellness business was a key growth driver, with revenue surging 76% to Rs 1,122.3 crore.

For the first half of FY27, revenue rose 25% to Rs 15,926.6 crore, while net profit declined 31% to Rs 1,885.9 crore.