Zydus Lifesciences Q2 results: net profit falls 27% despite 29% revenue growth

Zydus Lifesciences Q2 results: the drugmaker reported consolidated net profit of Rs 926 crore for the quarter ended September 30, 2026 (Q2 FY27), down 27% from Rs 12,609 million a year earlier. Revenue from operations rose 29% to Rs 79,096 million, or about Rs 7,910 crore, according to the press release filed with the exchanges on November 4, 2026.

Zydus Lifesciences Q2 results: key numbers

Figures are consolidated and unaudited. The company reports in Rs million; they are converted here to Rs crore (10 million = 1 crore).

Measure (Rs crore)	Q2 FY27	Q2 FY26	Change
Revenue from operations	7,910	6,123	+29.2%
EBITDA	1,895	2,016	-6.0%
Profit before tax	1,262	1,694	-25.5%
Net profit	926	1,261	-26.6%

The EBITDA margin fell to 24.0% from 32.9%. EBITDA is earnings before interest, tax, depreciation and amortisation.

Why profit fell despite higher revenue

Revenue grew strongly, but operating profit did not keep pace, so the margin narrowed by about nine percentage points. The press release does not give a single reason for the margin decline. Research and development spending was Rs 657 crore, or 8.3% of revenue. In our view, the revenue mix is worth noting: consumer wellness sales grew 76% and the company’s results include newly consolidated businesses, but the filing should be read for the exact drivers.

Business-wise sales

Consolidated revenues of Rs 7,754 crore included the pharma business at Rs 6,408 crore (up 22%), with North America formulations at Rs 3,315 crore (up 21%) and India formulations at Rs 1,884 crore (up 18%). Consumer wellness rose 76% to Rs 1,122 crore and MedTech rose 47% to Rs 225 crore.

For the first half, revenue rose 25% to Rs 15,927 crore while net profit fell 31% to Rs 1,886 crore. Managing Director Sharvil Patel said the company looks forward to the approval and launch of Saroglitazar in the US.

What to watch next

The Saroglitazar decision in the US and the margin trend in the third quarter are the points to follow. More earnings coverage is in our results news section.