Zydus Lifesciences is a pharmaceutical company spanning branded formulations, generics, biosimilars, vaccines, consumer wellness and medical devices, reporting into a quarter where the Indian pharma market accelerated to 12% growth while US generics pricing stayed under pressure. The print will speak to whether EBITDA margins hold above the reaffirmed 24% FY27 guidance after Q1's 24.1%, and how the North America book laps Revlimid erosion with Assertio in its first full quarter.
| Results date | November 04, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 8,017.0 Cr |
| Previous quarter PAT | Rs. 939.8 Cr |
| Previous quarter EBITDA margin | 24.1% |
| Market cap | Rs. 124,239.1 Cr |
| CMP | Rs. 1,245.5 |
Per the board-meeting intimation dated October 19, 2026, Zydus Lifesciences will consider Q2 FY27 results on Nov 4; the trading window is shut till Nov 6.
The earnings call is scheduled for Nov 4 at 3:30 pm IST, hosted by MD Dr. Sharvil Patel.
The quarter tests whether Zydus can hold EBITDA margins above its reaffirmed FY27 guidance of 'in excess of 24%' after Q1 FY27 printed 24.1%, down 7.7 percentage points from 31.8% in Q1 FY26. The India formulations backdrop is supportive: the IPM grew 12.1% in July, 10.7% in August and 13.5% in September with the strongest volume print in two years at 3.5%, taking Q2 FY27 market growth to 12% versus 11.3% in Q1 — against Zydus' guidance of mid-teens India growth and 200-400 bps IPM outperformance.
North America, 40% of Q1 FY27 revenue, faces the hardest lap: the company laps a pre-erosion Q2 FY26 base of Rs. 2,743.7 Cr with single-digit price erosion on a $300-310 million per quarter base, cushioned partly by the first full quarter of Assertio, which became a wholly owned subsidiary on June 16, 2026.
Cost lines stay in focus, with management attributing about 80% of the operating-cost increase to the Zylidac and Assertio acquisitions plus freight within a Rs. 1,900-2,000 crore quarterly other-opex run-rate, and elevated ocean freight (Drewry WCI at $4,639/40ft on July 9, still $4,585 on October 22) keeping that line sticky. The rupee's weakness through the window (96.53/$ on October 7) is a translation tailwind for the ~40%-US-revenue mix, though the company's recent pattern has been reported FX losses (FY26 net FX loss of Rs. 12,805 mn).
US pharma tariffs are a non-event for the generics book this quarter, with Section 232 explicitly excluding generics and India eligible for a zero-tariff specialty-drug exemption effective September 29, 2026. The call is also likely to cover the unresolved Baddi warning letter from June 2026 and the Moraiya inspection that closed with 5 observations on October 13, 2026.
Performance vs FY27 guidance tracking: Q1 FY27 delivered revenue +22.0% YoY but PAT -35.9%, so each guidance line carries a different trajectory into Q2.
Saroglitazar US launch timing and spend
USFDA compliance: Baddi and Moraiya
Strategic execution: Sri Lanka JV, Desidustat China, Agenus bio-CDMO, FYB206
Capital allocation and cost run-rates
Management has guided for EBITDA margin in excess of 24% for FY27, accounting for R&D at 8% of revenue and competitive pressures including Revlimid and Mirabegron competition plus Saroglitazar launch expenses. On the Q1 FY27 call, management reaffirmed: '24% guidance. So that is what we are sticking to.'
FY26 operating cash flow was approximately Rs. 2,000 crore against EBITDA of about Rs. 7,000 crore. Management attributed the shortfall to the Mirabegron settlement, increased capex, and incremental working capital from recent acquisitions.
The two stated timelines differ: the AGM transcript (September 2026) put the launch in Q4 FY2027, while the Q1 FY27 call indicated April FY28. The NDA has received USFDA Priority Review, with an additional 70 million of commercialization investment planned in FY27.
FY27 capex is projected at Rs. 1,500-1,600 crores, covering SEZ 3 Moraiya, Goa, Baddi, Unit-2 and Unit-3 SEZ expansions, a new formulations R&D center, a CAR-T facility and a new vaccines DS facility. This compares with FY26 organic capex of Rs. 1,714.5 Cr.
Yes — India formulations grew 19.5% YoY in Q1 FY27, and management has guided to outperform the IPM by 200-400 basis points for FY27. The chronic and sub-chronic portfolio share stands at 54.2%, up 360 bps over four years, with 78 brands carrying over Rs. 250 mn in revenue.
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