Zydus Lifesciences Q2 results: Net profit declines 27% YoY; US business revenue grows to ₹3,315 crore

The pharma major’s revenue from operations, however, grew 29% to ₹7,910 crore in the September quarter, as against ₹6,123 crore registered in the year-ago period.

Zydus’ operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), slipped 6% to ₹1,895 crore as compared to ₹2,015 crore in the corresponding quarter of the previous fiscal year.

For the quarter under review, its EBITDA margin contracted to 23.95% in contrast to 32.9% in Q2 FY26.

“Our Q2 performance reflects strong, all-round momentum, spearheaded by our branded businesses in India, International Markets and Wellness. Notably, the share of branded sales in the US has risen to 16%, underscoring our steady shift towards a more differentiated, speciality-led portfolio,” said Sharvil Patel, Managing Director, Zydus Lifesciences.

The company’s research and development (R&D) investment stood at ₹657.3 crore during the quarter, accounting for 8.3% of its revenue. Its organic capital expenditure (capex) for the quarter was ₹465.5 crore.

Zydus' India formulations business reported revenue of ₹1,884 crore, registering an 18% annual growth and accounting for 24% of the company’s consolidated revenue. The branded formulations business grew 19% YoY. The business maintained its above-market performance during the first half of FY27, continuing the trend seen over the last three financial years.

The North America formulations business posted a 21% YoY growth in revenue at ₹3,315 crore and a 7% quarter-on-quarter (QoQ) increase. This was driven by sustained volume expansion in the base business, supplemented by the continued scale-up of the US speciality business. In constant currency (CC) terms, the business reported revenue of $347 million.

“We look forward to the approval and launch of Saroglitazar in the US, our first indigenously discovered NCE, which marks a pivotal point in our evolution. Anchored in patient centricity and supported by robust quality systems, we remain committed to building long-term growth levers and enhancing returns for all our stakeholders,” said Patel.

For the international markets’ formulations segment, the revenue stood at ₹1,001 crore, up 33% YoY. Growth was broad-based across markets, supported by strong underlying demand and focused execution, Zydus said.

Further, the drug major’s active pharmaceutical ingredients (API) business reported revenue of ₹149 crore, marking a growth of 1% annually. The Alliances and Others business recorded revenue of ₹59.2 crore, up 374% YoY.

Zydus Lifesciences share price trends

At 1 PM, Zydus Lifesciences shares were trading at ₹1,192.9 apiece on the National Stock Exchange, declining 3.84%. The stock surged 2% to hit a 52-week high of ₹1,266.6 per share before retreating 6% from the day's high to touch an intraday low of ₹1,190 per share.

From the beginning of the year, Zydus Lifesciences shares have jumped 30%. Over a month’s time, the stock has gained 4%, while for a six-month period, it has climbed 32%.

According to NSE data, as of November 4, 2026, the company has a total market capitalisation of ₹1.19 lakh crore.