Zydus Q2 FY27 slides: 29% revenue growth masks margin pressure

Zydus Lifesciences Limited reported a 29% year-over-year increase in consolidated revenues to Rs. 79,096 million for the second quarter of fiscal 2027, but faced declining net profit and margin compression. Shares fell 4.08% to $1,190 following the presentation. EBITDA margin held at 24%, while net profit dropped 26.6% to Rs. 9,255 million.

The company's revenue growth was broad-based, with pharmaceutical business accounting for 83% of total sales and growing 22% year-over-year. North America formulations led revenue contribution at 43% of total sales, growing 21% year-over-year. India branded formulations achieved 19% growth, outperforming the broader market. Consumer Wellness and International Markets also showed strong growth.

R&D investment totaled Rs. 6,573 million, and organic capital expenditure was Rs. 4,655 million. Despite profitability pressure, Zydus continued to invest in future growth drivers.