* Zydus Lifesciences Limited reported robust financial performance for Q2 FY26 (quarter ended September 30, 2025). * Consolidated revenues reached ₹61.2 billion, marking a 17% year-on-year increase. Excluding the impact of acquisitions, the growth was in double digits. * Operating profitability remained strong with an EBITDA margin of 32.9%, an improvement of 500 basis points year-on-year, resulting in an EBITDA of ₹20.2 billion, up 38% year-on-year. * Net profit for the quarter stood at ₹12.6 billion, also up 38% year-on-year. * Business Highlights: * The US formulations business registered revenues of ₹27.4 billion, a 14% year-on-year growth, driven by volume expansion and new product launches. The company filed six ANDAs, received four approvals, and launched seven new products during the quarter. In October 2025, it launched Beizray, an albumin-solubilized docetaxel injection, enhancing its 505(b)(2) portfolio. * The branded formulations business in India grew by 9% year-on-year, outperforming the market, with sustained traction in innovation products and pillar brands. The chronic segment's contribution increased to 44.5%. India's first trivalent influenza vaccine, Vaxi Flu, was launched. * The consumer wellness business recorded revenues of ₹6.4 billion, up 31% year-on-year, significantly boosted by the acquisition of UK-based Comfort Click Limited (CCL), which marks the company's entry into the high-growth VMS (vitamins, minerals, and supplements) segment across the UK, EU, and US. * The international markets formulations business posted revenues of ₹7.5 billion, demonstrating a strong 39% year-on-year growth across emerging markets and Europe. * On the MedTech front, Zydus completed the 100% acquisition of Amplitude Surgical in October 2025 by acquiring the remaining 14.4% stake. The company plans to expand its presence in orthopedics, nephrology, and cardiology. * Operational Updates: * The oncology injectable manufacturing facility in Ahmedabad and the Baddi formulations facility received EIR reports with voluntary action indicated from the USFDA following inspections in June 2025 and August 2025, respectively. * Innovation Programs: * Positive top-line results were reported from the Pivotal EPICS-III Phase 2(b)/3 trial of Saroglitazar Magnesium in patients with PBC for the US market, meeting the primary endpoint. The company is on track to file the New Drug Application with the USFDA in Q4 FY26. * Regulatory approval was received to initiate Phase II clinical trials for its Bivalent Typhoid Conjugate vaccine in India. * CUTX-101 is anticipated for launch between January and June 2026. * Management Comments: * Management expressed satisfaction with the performance and confirmed being on track to achieve targeted top-line growth and profitability for FY26. * The board approved an enabling Qualified Institutional Placement (QIP) resolution to deleverage the balance sheet, enhance financial flexibility, and position the company for strategic acquisitions in the US specialty business, international markets, and innovative assets. * Dr. Sharvil Patel highlighted the significant opportunity for Saroglitazar in the US PBC market, with a potential launch within 14 to 15 months. * Priority for M&A activity remains US specialty and Europe, with MedTech opportunities being opportunistic. The target net debt to EBITDA ratio is less than one time without acquisition, potentially up to two times for a short period with acquisition. * The transcript of the post-results earnings call, which was held on November 6, 2025, was released on November 13, 2025.
