Zydus Lifesciences has reported a 29% year-on-year jump in revenue from operations to Rs 79,096 million for the second quarter of FY27, even as profitability weakened, with EBITDA declining 6% and net profit falling 27%.
For Q2 FY27, EBITDA stood at Rs 18,945 million, down 6% year-on-year, while the EBITDA margin was 24%. Net profit declined 27% to Rs 9,255 million, highlighting the pressure on earnings despite robust topline growth.
Zydus continued to maintain significant investments in research and development, spending Rs 6,573 million during the quarter, equivalent to 8.3% of revenue.
Organic capital expenditure for the quarter stood at Rs 4,655 million.
For the first half of FY27, Zydus reported revenue from operations of Rs 159,266 million, registering 25% growth over the corresponding period last year.
However, earnings remained under pressure. EBITDA declined 7% year-on-year to Rs 38,239 million, with the EBITDA margin standing at 24%. Net profit fell 31% to Rs 18,859 million.
The company invested Rs 12,997 million in R&D during H1 FY27, accounting for 8.2% of revenue. Organic capital expenditure during the six-month period amounted to Rs 10,530 million.
Zydus reported a net debt-to-equity ratio of 0.19x as of September 30, 2026, while its net debt-to-EBITDA ratio stood at 0.62x at the end of the reporting period.
The financial performance reflects a strong revenue growth trajectory, but the decline in EBITDA and net profit points to continuing pressure on the company's bottom line.
