Zydus Lifesciences LimitedPharmaceuticals & HealthcareZYDUSLIFE
Q1 FY27 concall · earnings callZydus Lifesciences Limited
Zydus Lifesciences started FY27 with strong double-digit growth across all key businesses, driven by branded formulations in India, international markets, and strategic advancements in specialty and innovation.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹8,020 Cr | 22% | |
| EBITDA Margin | 24.1% | — | |
| Net Profit | ₹940 Cr | — | |
| Net Debt to EBITDA | 0.7 times | — | |
| India Branded Formulations Growth | 20% | — | |
| International Formulations Revenue | ₹970 Cr | 34% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹5,269.10 Cr+17% YoY+0.6% QoQ | ₹1,026.20 Cr+29.9% YoY+11.5% QoQ | ₹10.18+34.1% YoY+12.5% QoQ |
| Q2 FY25 | ₹5,237.00 Cr+19.9% YoY-15.6% QoQ | ₹920.20 Cr+14.6% YoY-37.9% QoQ | ₹9.05+14.3% YoY-35.9% QoQ |
| Q1 FY25 | ₹6,207.50 Cr+20.8% YoY+12.2% QoQ | ₹1,482.50 Cr+30.8% YoY+19% QoQ | ₹14.11+31.3% YoY+21% QoQ |
| Q4 FY24 | ₹5,533.80 Cr+10.4% YoY+22.8% QoQ | ₹1,246.10 Cr+247.9% YoY+57.8% QoQ | ₹11.66+295.3% YoY+53.6% QoQ |
| Q3 FY24 | ₹4,505.20 Cr+3.3% YoY+3.1% QoQ | ₹789.90 Cr+25.1% YoY-1.7% QoQ | ₹7.59+23.4% YoY-4.2% QoQ |
TL;DR
- Consolidated revenue grew 22% YoY to ₹80.2 billion, with EBITDA margin at 24.1%.
- India branded formulations grew 20% YoY, outperforming the market.
- International formulations grew 34% YoY to ₹9.7 billion.
- North America (US & Canada) revenue was ₹31 billion, up 5% QoQ.
- Consumer Wellness revenue grew 67% YoY to ₹14.3 billion.
- US specialty business launched its first biosimilar and completed the Assertio acquisition.
Said on the call
“FY27 is off to a great start with a strong performance across the key businesses. More importantly, we continue to advance our transformation into an innovation-led organization.”
From the Q&A
| Topic | What management said |
|---|---|
| FY27 Guidance | Management reiterated guidance for 'strong double-digit growth' and ~24% EBITDA margin, with India expected to outpace market by 300-500 basis points, US around single-digit growth. |
| Cost Inflation | The increase in other expenses (run rate of ₹1,900-₹2,000 crores per quarter) is largely (80%) due to recent acquisitions (Zylidac, Assertio) and includes freight expenses; Saroglitazar investment will increase in the second half. |
| Capex | Full-year capex guidance is ₹1,500-₹1,600 crores, covering new R&D center, SEZ expansion, vaccine and CAR-T facilities, and land acquisition for wellness. |
| Saroglitazar (Saro) US Launch | Launch planned for April FY28 (FY28 for the company). First 2 years will be an investment/build phase; conservative peak sales estimate is $200-$300 million, optimistic over $400+ million. |
| US Branded Business Mix | Branded business currently contributes 10% of US revenue (excluding Assertio), expected to cross 15% by year-end as Assertio adds ~$15-$20 million per quarter (Rolvedon). |
| India Growth Drivers | Growth driven by strong chronic portfolio (>20% growth), meaningful uptick from Saro/Desi (30-45% growth), biologics traction, and contribution from semaglutide; sustainable momentum expected. |
| Medium-Term Margin Target | As branded business scales to two-thirds of revenue over the medium term, EBITDA margin is expected to improve to the 28-30% range over a 5-year period. |
| US Biosimilars Timeline | Meaningful scale-up for the US biosimilars business is expected around calendar year 2029. |
Guidance
- Strong double-digit revenue growth for FY27.
- India business to outperform market growth by 300-500 basis points.
- EBITDA margin guidance of around 24% for FY27.
- Full-year capex of ₹1,500-₹1,600 crores.
- Medium-term target for branded portfolio to exceed two-thirds of total revenue.
- US branded business contribution expected to cross 15% by year-end.
Source
Summary written from the transcript filed by Zydus Lifesciences Limited for the call held on 18 Aug 2026; published 19 Aug 2026, 13:24 IST.
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