Zydus Lifesciences reported a strong start to FY27, with revenue from operations rising 22% year-on-year to Rs. 8,017 crore in Q1 FY27, compared with Rs. 6,574 crore in the year-ago quarter.

However, profitability came under pressure during the quarter. EBITDA declined 8% to Rs. 1,929 crore, with the EBITDA margin at 24.1%, while net profit fell 36% to Rs. 940 crore from Rs. 1,467 crore in Q1 FY26. 

The company invested Rs. 642 crore in R&D during the quarter, representing 8% of revenues, while organic capex stood at Rs. 585 crore.

The company's consolidated revenues, including business-wise sales, stood at Rs. 7,802 crore, up 21% year-on-year. Pharma remained the largest contributor, accounting for 78% of consolidated revenues, followed by Consumer Wellness at 18% and MedTech at 4%.

The India Formulations business delivered strong growth, with revenues increasing 20% to Rs. 1,816 crore. The business continued to outperform the Indian pharmaceutical market, with growth across cardiology, diabetology, gynaecology, anti-infectives, pain management, oncology and nephrology.

The North America Formulations business reported revenues of Rs. 3,098 crore, down 3% year-on-year but up 5% sequentially. During the quarter, Zydus filed five ANDAs, received nine approvals and launched 11 new products in the US. The company also launched NUFYMCO(ranibizumab), its first biosimilar in the US, and completed the acquisition of Assertio Holdings to strengthen its specialty pharmaceutical presence.

Zydus also continued to advance its innovation pipeline. The US FDA granted priority review to the NDA for Saroglitazar Magnesium for the treatment of primary biliary cholangitis (PBC), while the company received Indian regulatory approval to initiate Phase III trials of Desidustat in sickle cell diseases. 

In biotech R&D, Zydus initiated Phase III clinical trials in India for its second biosimilar antibody-drug conjugate. The company also completed Phase II trials of its bivalent Typhoid Conjugate vaccine and initiated Phase I trials of its Chikungunya vaccine. 

Dr. Sharvil Patel, Managing Director, Zydus Lifesciences, said, “FY27 is off to a strong, profitable start. We continue advancing into an innovation-led, patient-centric organization. Our branded portfolio now exceeds 55% of revenues. Notably, the share of branded sales in the US reached 11% and will continue to expand with the upcoming Saroglitazar launch. 

“Backed by diverse manufacturing and robust quality systems, we will further strengthen our core businesses and expand our market share. Driven by execution rigor and acquisition synergies, we are well-positioned for our next growth phase,” added Dr. Patel.