Zydus Lifesciences Reports Q1 FY27 Results: Operational Revenue Up 22% to ₹80,170 Million

Ahmedabad-based pharmaceutical major Zydus Lifesciences Limited has announced its consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by solid growth in India Formulations, International Markets, and Consumer Wellness, the company achieved a 22.0% year-on-year increase in revenue from operations, reaching ₹80,170 million.

Financial Performance Overview

For Q1 FY27, Zydus Lifesciences reported consolidated revenue from operations of ₹80,170 million, up from ₹65,737 million in Q1 FY26 and ₹75,870 million in Q4 FY26 (a quarter-on-quarter growth of 5.7%). Segmental consolidated revenues stood at ₹78,020 million, up 20.6% year-on-year compared to ₹64,670 million in Q1 FY26.

Operating profitability and net profit metrics for the quarter include:

EBITDA: Stood at ₹19,294 million, down 7.6% year-on-year from ₹20,885 million in Q1 FY26 and down 24.5% quarter-on-quarter from ₹25,544 million.

EBITDA Margin: Recorded at 24.1%, compared to 31.8% in Q1 FY26 and 33.7% in Q4 FY26.

Profit Before Tax (PBT): Came in at ₹13,066 million, reflecting a 32.0% year-on-year decline compared to ₹19,206 million in Q1 FY26.

Net Profit: Stood at ₹9,398 million, down 35.9% year-on-year from ₹14,668 million in Q1 FY26 and down 26.1% sequentially from ₹12,725 million in Q4 FY26.

Business Segment Breakdown

Pharma Business

The core Pharma Business generated ₹60,900 million in sales during Q1 FY27, representing an 8.6% year-on-year growth and a 7.9% quarter-on-quarter increase.

India Formulations: Delivered strong performance with revenues of ₹18,158 million, up 19.5% year-on-year (₹15,192 million in Q1 FY26) and up 3.6% quarter-on-quarter.

North America Formulations: Generated ₹30,979 million, recording a mild decline of 2.6% year-on-year (₹31,817 million in Q1 FY26), though improving by 4.9% sequentially over Q4 FY26 (₹29,523 million).

International Markets (IM) Formulations: Recorded robust expansion with sales reaching ₹9,735 million, representing a 34.0% year-on-year increase (₹7,265 million in Q1 FY26) and a 21.1% sequential gain.

Active Pharmaceutical Ingredients (APIs): Grew 14.5% year-on-year to ₹1,804 million (up 48.0% quarter-on-quarter from ₹1,219 million).

Alliances & Others: Contributed ₹224 million, down 11.1% year-on-year.

Consumer Wellness and MedTech

Consumer Wellness: Achieved significant growth, recording sales of ₹14,292 million, up 67.2% year-on-year compared to ₹8,549 million in Q1 FY26.

MedTech: Contributed ₹2,828 million to consolidated sales for the quarter, compared to ₹20 million in Q1 FY26 and ₹3,275 million in Q4 FY26.

Investments, Capex, and Balance Sheet Position

Zydus Lifesciences continued to allocate significant resources toward pipeline development and operational infrastructure during the quarter:

Research & Development (R&D): R&D investments for Q1 FY27 stood at ₹6,424 million, accounting for 8% of total operational revenues.

Capital Expenditure: Organic capex incurred during the quarter totaled ₹5,852 million.

Leverage Ratios: As of June 30, 2026, the company maintained a healthy balance sheet profile with a Net Debt to Equity ratio of 0.22x and a Net Debt to EBITDA ratio of 0.70x.

FY27 is off to a strong, profitable start. We continue advancing into an innovation-led, patient -centric organization. Our branded portfolio now exceeds 55% of revenues. Notably, the share of branded sales in the US reached 11% and will continue to expand with the upcoming Saroglitazar launch. Backed by diverse manufacturing and robust quality systems, we will further strengthen our core businesses and expand our market share. Driven by execution rigor and acquisition synergies, we are well -positioned for our next growth phase. - Dr. Sharvil Patel, Managing Director - Zydus Lifesciences Limited.

Shares of Zydus Lifesciences Limited was last trading in BSE at Rs. 1180.00 as compared to the previous close of Rs. 1120.70. The total number of shares traded during the day was 714544 in over 25025 trades.

The stock hit an intraday high of Rs. 1205.00 and intraday low of 1115.35. The net turnover during the day was Rs. 834720068.00.

Source : Equity Bulls

Keywords

ZydusLifesciences INE010B01027 Pharmaceuticals Q1FY27 Q1FY2027 ResultUpdate