Zydus Lifesciences Limited disclosed an independent environmental, social and governance (ESG) rating of 60 assigned by ESGRAIL on August 21, 2026.

The company confirmed that it did not engage the rating agency for this assessment. ESG Risk Assessments and Insights Limited (ESGRAIL), a SEBI-registered ESG Rating Provider, prepared the report independently using publicly available information.

Regulatory Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also adheres to SEBI Circulars dated November 11, 2024, and December 31, 2024.

Dhaval N. Soni, Company Secretary and Compliance Officer of Zydus Lifesciences Limited, signed the filing submitted to both the BSE and NSE.

Zydus Lifesciences Limited commenced FY27 with strong double-digit growth, reporting consolidated revenues of ₹80.2 billion for the quarter ended June 30, 2026, up 22% year-on-year. The company delivered robust operating profitability with an EBITDA margin of 24.1%, resulting in an EBITDA of ₹19.3 billion and a net profit of ₹9.4 billion. Management highlighted that the branded portfolio now accounts for over 55% of total revenue, reinforcing the company's transition toward an innovation-led business model.

The results were approved by the Board of Directors on August 11, 2026, in Ahmedabad. Pursuant to Regulation 30 read with Regulations 33 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published the results in the Financial Express on August 12, 2026. The unaudited figures were subjected to a limited review by Deloitte Haskins & Sells LLP, the statutory auditors. Dr. Sharvil P. Patel, Managing Director, signed off on the results.

Key Financial Metrics

The extract of the consolidated unaudited financial results highlights the following key metrics for Q1FY27 compared to the corresponding periods:

The net profit before exceptional items and tax was ₹13,248 million, down from ₹20,572 million in Q4FY26 but lower than the ₹19,206 million reported in Q1FY26. After accounting for exceptional items, the pre-tax profit stood at ₹13,066 million. The final net profit after tax and non-controlling interest was ₹9,398 million, compared to ₹14,668 million in Q1FY26.

Segment Performance

In India, the branded formulations business sustained market outperformance with a strong 20% year-on-year growth. This segment has consistently outperformed market growth over the last three financial years, with broad-based expansion across super-specialty, chronic, and acute segments. Key therapy areas such as cardiology, diabetology, gynecology, anti-infectives, pain management, oncology, and nephrology all grew faster than the market. The contribution of the chronic and sub-chronic portfolio increased to 54.2% as per AWACS MAT June 2026, an improvement of 360 basis points over the last four years.

The International Markets formulations business posted revenues of ₹9.7 billion, up 34% year-on-year, establishing itself as a formidable growth pillar. In North America, revenues reached ₹31 billion, up 5% quarter-on-quarter, driven by sustained volume expansion and new product launches. The US generics business filed five ANDAs, received nine approvals, and launched 11 new products during the quarter. Notably, Zydus launched Nufymco™ Injection, its first biosimilar in the US market, and completed the acquisition of Assertio Holdings to strengthen its US specialty capabilities.

The Consumer Wellness business recorded revenues of ₹14.3 billion, up 67% year-on-year. Within this, the international business delivered like-to-like growth of 25%, while the domestic business grew 5% year-on-year. Skin & hair care and food & nutrition segments grew 35% and 16% respectively, offsetting degrowth in seasonal brands due to a softer summer season. The medical devices space registered revenues of ₹2.8 billion.

Operational and Innovation Updates

On the operations front, the injectable manufacturing facility at Zydus Biotech Park received an Establishment Inspection Report (EIR) with a Voluntary Action Indicated (VAI) classification following GMP surveillance inspections in April and May 2026. The company also entered into a joint venture agreement with Sunshine Healthcare to establish a pharmaceutical manufacturing facility in Sri Lanka.

Regarding innovation, the USFDA granted priority review to the new drug application of Saroglitazar Magnesium for primary biliary cholangitis. Zydus received regulatory approval in India to initiate Phase III clinical trials of Desidustat for sickle cell disease in collaboration with ICMR. Additionally, the company initiated a Phase III trial in India for its second ADC Biosimilar, completed Phase II trials of its bivalent typhoid conjugate vaccine, and submitted its MR vaccine dossier to the WHO.

Guidance and Outlook

Management reaffirmed its guidance for strong double-digit growth for FY27. Dr. Sharvil Patel noted that the India business is poised to deliver mid-teens growth, outperforming the market by 300-500 basis points, while international markets and the US are expected to see single-digit growth. The company maintained its EBITDA margin guidance of 24%+, despite increased operating costs driven by acquisitions such as Assertio and Zylidac, as well as freight expenses. CFO Tushar Shroff indicated that other expenses, excluding R&D, are running at approximately ₹1,900-₹2,000 crore per quarter, inclusive of Saroglitazar-related costs which are expected to increase in the second half of the year.

Capex guidance for the full year stands at ₹1,500-₹1,600 crore, driven by facility expansions in Moraiya, Goa, Baddi, and SEZ, along with investments in new R&D centers, wellness land acquisition, and biologics facilities. For Saroglitazar, management expects an April FY28 launch, with significant revenue buildup anticipated in the second and third years post-launch. Conservative peak sales estimates range between $200-$300 million, with optimistic scenarios potentially crossing $400 million.

What the Numbers Show

The shift toward a branded portfolio is evident, with branded products now contributing over 55% of total revenue. This structural change supports the company's medium-term goal of having branded products exceed two-thirds of overall revenue, which management believes will drive EBITDA margins toward the 28-30% range over the next five years. Despite the short-term pressure on margins from acquisition-related costs and Mirabegron royalty settlements, the sustained double-digit revenue growth and stable EBITDA margins indicate effective execution of the innovation-led strategy.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE010B01027/f804206d-f516-4913-b9cf-c1197ba74b33.pdf