Zydus Lifesciences Q1 FY 2026-27 Results: Net Profit Plunges 36% To Rs 940 Crore, Margins Contract

Zydus Lifesciences Q1 FY 2026-27 Results: Zydus Lifesciences reported a decline in June quarter profit as EBITDA margin contracted sharply, even as revenue grew on strong momentum across its India formulations.
Zydus Lifesciences Q1 FY 2026-27 Results: Pharmaceutical company Zydus Lifesciences reported its financial results for the quarter ended June 30, 2026, on Tuesday, August 11 during market hours
Consolidated net profit declined 35.93% year-on-year to Rs 939.8 crore, compared with Rs 1,466.8 crore in the corresponding quarter last year.
Consolidated revenue from operations rose 21.95% year-on-year to Rs 8,017 crore, compared with Rs 6,573.7 crore in the year-ago period.
At the operating level, EBITDA declined 7.6% year-on-year to Rs 1,929.4 crore, compared with Rs 2,088.5 crore in the year-ago period. EBITDA margin consequently contracted by 770 basis points to 24.1% from 31.8% in the year-ago quarter.
Business Performance
The pharma segment contributed 78% to the company's business mix during the quarter, followed by consumer wellness at 18% and medtech at 4%. Within the pharma business, North America Formulations made up 40% of revenue, India Formulations stood at 23%, International Markets Formulations was at 12%, and active pharmaceutical ingredients and others accounted for 3% in the quarter.
India's branded formulations sustained strong growth momentum and outpaced the market for another quarter, while the North America formulations business grew sequentially on sustained volume expansion and new launches. The international markets business maintained its growth trajectory on strong demand.
The Consumer Wellness business continued to hold a dominant market share in key brands in India, while its international business, including CCL, delivered a robust performance on a like-for-like basis. The MedTech business continued to enhance capabilities in focused therapies.
The company reported organic capital expenditure of Rs 5,852 million during the quarter. Net debt stood at Rs 59,041 million as of June 30, 2026.
Management Commentary
Commenting on the results, Dr. Sharvil Patel, Managing Director of Zydus Lifesciences, said FY27 is off to a strong, profitable start for the company as it continues to advance into an innovation-led, patient-centric organisation. He said the branded portfolio now exceeds 55% of revenues.
He noted that the share of branded sales in the US has reached 11% and will continue to expand with the upcoming launch of Saroglitazar. Backed by diverse manufacturing capabilities and robust quality systems, he said the company would further strengthen its core businesses and expand market share, adding that execution rigour and acquisition synergies have positioned it well for its next growth phase.
Zydus Lifesciences said its injectable manufacturing facility at Zydus Biotech Park received an Establishment Inspection Report with a Voluntary Action Indicated classification, following a Good Manufacturing Practices surveillance inspection conducted during April-May 2026.
Zydus Lifesciences Share Price
Shares of Zydus Lifesciences surged as much as 5.4% to hit an intraday high of Rs 1,178.90 on the NSE on Tuesday, following the earnings announcement. At around 2:13 PM, the stock was trading 4.45% higher at Rs 1,168.80. It has climbed more than 3% over the past week and 2% over the past month, taking its year-to-date gain to 28%.
The stock had touched a 52-week high of Rs 1,181.50 on July 8, 2026, and a year's low of Rs 835.50 on April 2, 2026. Zydus Lifesciences had a total market capitalisation of Rs 1.17 lakh crore as of August 11, 2026, according to NSE data.
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Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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