Zydus Lifesciences Q2 Results: Net profit jumps 38% YoY, R&D spend at ₹482 crore

Its revenue from operations for the quarter ended September 30, 2025, increased 15% to ₹6,123 crore as against ₹5,305 crore in the year-ago period.

The drug maker also reported stable operational performance in Q2 as its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), surged 32% to ₹2,018 crore from ₹1,530 crore in the same period of the previous fiscal year.

Margin expanded to 32.96% in the reporting quarter as compared to 28.84% year-on-year (YoY).

Zydus Lifesciences’ Research & Development (R&D) investments for the quarter stood at ₹482 crore, accounting for 7.9% of its revenues. The company’s organic capex for the quarter stood at ₹491 crore.

Commenting on the earnings, Zydus Lifesciences Managing Director Dr Sharvil Patel said, “Our strong performance this quarter reaffirms the power of our diversified business model and our execution capabilities across geographies and verticals. We delivered robust revenue growth and industry-leading profitability, aided by consistent outperformance in our US and India formulations businesses, sustained high growth in international markets, and strategic acquisitions in wellness and medtech.”

H1 FY26 updates

For H1 FY26, the pharma company reported revenue from operations of ₹12,697 crore, an increase of 11% YoY. Its R&D investments stood at ₹968 crore, accounting for 7.6% of revenues. EBITDA came in at ₹4,104 crore, up 16% YoY, with an EBITDA margin of 32.3% — an improvement of 130 basis points over the previous year.

Net profit rose 17% YoY to ₹2,725 crore in H1 FY26, while the organic capex stood at ₹893 crore. As of September 30, 2025, the company’s Net Debt-to-Equity ratio stood at 0.09x, while the Net Debt-to-EBITDA ratio was 0.3x.

Q2 business updates

• The India Formulations business reported revenues of ₹1,593 crore, an increase of 8% year-on-year, contributing 26% to the company’s consolidated revenues. The branded formulations segment outperformed the market with 9% year-on-year growth, driven by strong traction in innovative products and key pillar brands.

• The Consumer Wellness business reported revenues of ₹637 crore, marking a robust 31% YoY growth and contributing 11% to the company’s total revenues.

• The US Formulations business recorded revenues of ₹2,744 crore, up 14% YoY but down 14% sequentially, contributing 45% to the company’s consolidated revenues. In constant currency terms, the business reported revenues of $313 million and launched seven new products during the quarter.

• Zydus Life’s International Markets Formulations business saw revenues of ₹751 crore, a strong 39% YoY growth, contributing 12% to the firm’s consolidated revenues. The growth was broad-based across regions, driven by robust demand in both emerging markets and Europe, supported by focused execution.

• The API business posted revenues of ₹147 crore, up 23% year-on-year, contributing 2% to the company’s consolidated revenues.

Following the earnings, Zydus Lifesciences shares were trading at ₹964.65 apiece on NSE, falling 0.73%.