Zydus Lifesciences reported a consolidated net profit of ₹926 crore on Wednesday, November 4, for the July-September quarter (Q2 FY27), a decline of about 27% from ₹1,261 crore in the same period last year, the company said. Revenue from operations, however, grew 29% to ₹7,910 crore, against ₹6,123 crore in the year-ago period. More precise filing figures put net profit at ₹925.5 crore, down 26.6%, and revenue at ₹7,909.6 crore, up 29.2%.

Source: Upstox

The profit fall came as costs outpaced even strong sales growth. Total revenue rose 29.2% year-on-year to ₹7,910 crore, but expenses grew at a faster pace of 51%, including a 36.4% increase in research and development spending and a 33.7% increase in employee-benefit expenses, Reuters reported. Operating profit (EBITDA) slipped 6% to ₹1,895 crore from ₹2,015 crore a year earlier, and the EBITDA margin contracted to 23.95% from 32.9% in Q2 FY26. The company's R&D investment stood at ₹657.3 crore in the quarter, accounting for 8.3% of revenue, and organic capital expenditure was ₹465.5 crore.

Source: Reuters

"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, as reported by Upstox. Patel added that the company looked forward to the approval and launch of Saroglitazar in the US, its first indigenously discovered new chemical entity.

Source: Upstox

North America and India lead sales growth

The North America formulations business, Zydus's largest market, posted revenue of ₹3,315 crore, up 21% year-on-year and 7% quarter-on-quarter, driven by sustained volume expansion in the base business and the continued scale-up of the US speciality business; in constant-currency terms the business reported revenue of $347 million. India formulations revenue was ₹1,884 crore, up 18% and accounting for 24% of consolidated revenue, with the branded formulations business growing 19%. International markets' formulations revenue stood at ₹1,001 crore, up 33%. The active pharmaceutical ingredients (API) business reported revenue of ₹149 crore, up 1%, while the Alliances and Others business recorded ₹59.2 crore, up 374%.

Source: Upstox

For the first half of FY27, revenue from operations grew 25.4% year-on-year to ₹15,926.6 crore, while net profit fell 30.9% to ₹1,885.9 crore and EBITDA declined 6.8%, according to the company's results summary reported by TaxGuru. Investors marked the stock down after the results: the shares fell about 4% on Wednesday — touching an intraday low of ₹1,182.40 on the NSE, down 4.7%, before trading at ₹1,192.90, down 3.84%, at 1 p.m. — after earlier surging 2% to a 52-week high of ₹1,266.60. According to NSE data cited by Upstox, the company's market capitalisation stood at ₹1.19 lakh crore as of November 4, 2026. This report is news coverage of published results, not investment advice.

Source: TaxGuru