Zydus PAT up 38% on strong India, US growth; board okays ₹5K cr fundraise

Zydus Lifesciences reported a 17% YoY rise in revenue to Rs 6,123 crore and a 38% jump in profit to Rs 1,258.6 crore in Q2 FY26, driven by India and US formulations performance

Ahmedabad-headquartered Zydus Lifesciences has posted a 17 per cent year-on-year (YoY) rise in revenue from operations to Rs 6,123 crore, while net profit rose 38 per cent to Rs 1,258.6 crore, aided by consistent performance in the US and India formulations businesses.

 

“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, as well as strategic acquisitions in wellness and MedTech,” said Sharvil Patel, Managing Director, Zydus Lifesciences.

 

 

What did the Zydus board approve in its latest meeting?

 

The board of directors approved raising funds through the issuance of eligible securities for an aggregate amount not exceeding Rs 5,000 crore, in one or more tranches, via qualified institutional placements, rights issues, preferential allotments, or private placements. The fundraise is subject to shareholder and regulatory approvals. The board has authorised a committee to take necessary decisions in this regard.

 

Company stock was down 3.76 per cent on the BSE.

 

How did Zydus perform on key financial metrics?

 

Research and development (R&D) investments for the quarter stood at Rs 482 crore, or 7.9 per cent of revenues. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter rose 38 per cent YoY to Rs 2,015.8 crore, with a resulting EBITDA margin of 32.9 per cent—an improvement of 500 basis points from a year earlier. Organic capex for the quarter stood at Rs 491.1 crore.

 

How did India and US formulations businesses perform?

 

India formulations posted revenues of Rs 1,593.1 crore, up 8 per cent YoY, accounting for 26 per cent of consolidated revenues. The branded formulations business grew 9 per cent YoY, outpacing the market, driven by sustained traction in innovation products and key brands. The chronic portfolio share rose to 44.5 per cent, an improvement of 500 basis points over the past three years (Source: IQVIA MAT September 2025 data).

 

The US formulations business reported revenues of Rs 2,743.7 crore, up 14 per cent YoY and down 14 per cent sequentially, accounting for 45 per cent of consolidated revenues. In constant currency terms, US business revenues were $313 million.

 

In October 2025, Zydus launched Beizray (albumin solubilised docetaxel injection) and received its first Notice of Compliance (NOC) approval in Canada from Health Canada for Varenicline tablets (0.5 mg and 1 mg). The company has received three NOCs so far, including two in October 2025.

 

What was the performance across international markets and MedTech?

 

International markets formulations business posted revenues of Rs 751.3 crore, up 39 per cent YoY, accounting for 12 per cent of consolidated revenues. The MedTech business registered revenues of Rs 153.2 crore, contributing 3 per cent to total revenues.

 

In October, Zydus acquired the remaining 14.4 per cent stake in Amplitude Surgical after acquiring 85.6 per cent during Q2 FY26, completing a 100 per cent acquisition of the company.

 

How did the consumer wellness business perform?

 

The consumer wellness division, which accounts for 11 per cent of consolidated turnover, reported a 31 per cent YoY revenue growth to Rs 637 crore. During the quarter, Zydus acquired UK-based Comfort Click Limited (CCL), marking its first international acquisition in the wellness segment. The deal strengthens Zydus’ international presence across key markets in the UK, EU, and US.