Zydus Lifesciences Q2 FY27 results: net profit down 25.1% to ₹927.70 crore, revenue up 29.2%

How did Zydus Lifesciences perform in Q2 FY27?

Consolidated revenue for Q2 FY27 was ₹7,910 crore, up ₹1,786 crore or 29.2% from ₹6,123 crore in Q2 FY26 and down ₹107.40 crore or 1.3% from ₹8,017 crore in Q1 FY27. EBITDA was ₹1,894 crore, compared with ₹2,016 crore a year earlier and ₹1,929 crore in the previous quarter. The EBITDA margin was 24.0%, down 8.9 percentage points year on year and 0.1 percentage points sequentially.

Consolidated profit before tax was ₹1,234 crore, down ₹453.20 crore or 26.9% from Q2 FY26 and ₹72.40 crore or 5.5% from Q1 FY27. Net profit was ₹927.70 crore, down ₹310.90 crore or 25.1% year on year and ₹62.50 crore or 6.3% sequentially. Basic EPS was ₹9.28, compared with ₹12.51 and ₹9.35, respectively. On the standalone basis, revenue was ₹3,482 crore and PAT was ₹714.5 crore.

What changed in Zydus Lifesciences' costs and profit?

Total expenses rose ₹2,296 crore or 50.9% year on year to ₹6,807 crore. Cost of materials increased by ₹60 crore to ₹1,387 crore, employee cost by ₹322.90 crore to ₹1,357 crore, finance costs by ₹85.70 crore to ₹187 crore, and depreciation by ₹302.60 crore to ₹604.50 crore. Other expenses increased ₹1,121 crore or 81.1% to ₹2,504 crore, the largest listed increase in the cost lines.

Other income rose by ₹20.90 crore to ₹129.90 crore. The exceptional item moved from a ₹34.20 crore charge in Q2 FY26 to a ₹1.30 crore gain in Q2 FY27, while tax expense fell by ₹120 crore to ₹334 crore. Despite these changes, EBITDA declined by ₹121.30 crore, PBT by ₹453.20 crore and PAT by ₹310.90 crore against Q2 FY26. The filing figures do not state a further reason for the movement in profit.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 25.4% to ₹15,926.6 crore from ₹12,696.9 crore in H1 FY26, while total income increased 24.7% to ₹16,162.6 crore. PBT fell 28.9% to ₹2,565.5 crore from ₹3,608 crore and PAT fell 29.8% to ₹1,938.5 crore from ₹2,759.6 crore. Basic EPS declined 30.5% to ₹18.84 from ₹27.09.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹55,606.9 crore, compared with ₹52,406.6 crore at 31 March 2026. Total equity was ₹30,322.8 crore, up from ₹29,582.2 crore, while borrowings rose to ₹13,249.6 crore from ₹11,769.5 crore. Cash and cash equivalents declined to ₹669.2 crore from ₹855.2 crore. Inventories increased to ₹6,882.2 crore from ₹5,628.1 crore, trade receivables fell to ₹4,380.7 crore from ₹5,415.7 crore, and trade payables rose to ₹2,957.6 crore from ₹2,845.1 crore.

H1 FY27 operating cash flow was ₹3,162.3 crore, compared with ₹946 crore in H1 FY26. Investing cash flow was negative ₹4,129.4 crore against negative ₹5,192.7 crore, financing cash flow was ₹774.1 crore against ₹4,223.1 crore, and capital expenditure was ₹1,261.2 crore against ₹867.5 crore. The filing excerpt does not provide closing cash for either period.

How has Zydus Lifesciences done over the last 8 quarters?

Revenue reached its highest level in Q1 FY27 at ₹8,017 crore before easing to ₹7,909.6 crore in Q2 FY27. Revenue had bottomed at ₹5,269.1 crore in Q3 FY25, and the company has reported year-on-year revenue growth in each of the last eight quarters. The latest quarter remained above the ₹6,123 crore recorded in Q2 FY26.

PAT peaked at ₹1,521 crore in Q1 FY26 and fell to ₹990.2 crore in Q1 FY27 and ₹927.7 crore in Q2 FY27. The EBITDA margin bottomed at 24.0% in the latest quarter after reaching 33.7% in Q4 FY26. Revenue was lower sequentially, while PAT and EBITDA margin continued their decline.

Which businesses drove the quarter?

Pharmaceuticals revenue was ₹6,558.2 crore, up 19.8% from ₹5,474.3 crore in Q2 FY26. Segment EBIT was ₹1,318.6 crore, compared with ₹1,738.8 crore in the year-ago quarter, and the EBIT margin was 20.1%. Consumer products revenue rose 73.5% to ₹1,125.7 crore from ₹648.9 crore, while EBIT was ₹7.1 crore against a loss of ₹17.2 crore; the EBIT margin was 0.6%.

Medical technologies reported revenue of ₹225.7 crore and EBIT of negative ₹92.8 crore, with an EBIT margin of negative 41.1%. The filing excerpt does not provide comparable year-ago figures for this segment. The company’s presentation separately reported 18.3% year-on-year growth for India formulations and described North America formulations growth as driven by sustained volume expansion and specialty-business scale-up.

What else did the company announce?

The board approved the appointment of Walker Chandiok & Co LLP as statutory auditors for a first term of 5 years, subject to approval by members at the 32nd AGM for FY27. The appointment follows Deloitte Haskins & Sells LLP’s completion of its second consecutive term of 5 years under mandatory auditor rotation. The same-day filings did not announce a dividend or fund raise.

The board also approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. Deloitte Haskins & Sells LLP issued limited-review reports for both statements. The trading window for directors and designated persons remains closed through 6 November 2026 and is scheduled to reopen on 9 November 2026.

What did Zydus Lifesciences' management say?

Management identified several risks: Saroglitazar approval remains conditional on clearance of outstanding or late FDA queries; USFDA inspections produced one observation at SCZ-2 and five at Moria, requiring remediation; Moria currently supports no product filings; and Keytruda biosimilar timing and revenue contribution depend on unresolved patent litigation. Management also said transdermal demand is about 50% above supply and that added capacity will take at least a year. It did not guide FY28 margins because Saroglitazar, medtech and Comfort Click investments are scaling.

How did Zydus Lifesciences shares react?

After the filing appeared, the stock fell 4.4% within 5 minutes, 4.5% within 15 minutes and 5.7% within 30 minutes. On the reaction day, it closed 4.2% below the pre-results close; by the next day’s close, it was down 3.4% from that same pre-results close. The Pharmaceuticals industry median rose 0.8% on the reaction day and 1.6% by the next day’s close, leaving Zydus Lifesciences 5.0 percentage points below the sector on both dates.

Earlier results-day moves were mixed: 6.8% on 11 August 2026, 2.6% on 19 May 2026, 3.9% on 9 February 2026 and negative 4.0% on 6 November 2025. The stock was unchanged on 12 August 2025, fell 3.0% on 20 May 2025, rose 1.0% on 5 February 2025 and fell 2.0% on 12 November 2024.

How did other Pharmaceuticals companies do?

Among 77 Pharmaceuticals peers compared for the quarter, the median revenue growth was 18.9%. Zydus Lifesciences’ 29.2% consolidated revenue growth was faster than the growth of 52 peers and slower than the growth of 25 peers. Of the 73 peers for which profit was compared, 50 reported higher profit. The peer figures were available as of 6 November 2026.