Synopsis: Zydus Lifesciences reported strong YoY growth in Q2 with 38% EBITDA and 35% PAT jump, reaffirmed FY26 guidance with 26% EBITDA margin outlook, plans 25+ US launches this year, and board approved fundraise of up to Rs. 5,000 crore.
This pharma stock is one of India’s leading integrated pharma & biotech companies with strong presence across formulations, biologics, APIs, vaccines, wellness and complex generics is now in the focus after FY26 guidance targets 26% EBITDA.
With market capitalization of Rs. 95,089 cr, the shares of Zydus Lifesciences Ltd are closed at Rs. 944.10 per share, from its previous close of Rs. 936.70 per share.
QoQ view
Revenue declined from Rs. 6,574 Cr in Q1FY26 to Rs. 6,123 Cr in Q2FY26, downside of 7% EBITDA also declined 3.4% to Rs. 2,016 Cr from Rs. 2,088 Cr in the previous quarter, while net profit fell by 18.4% to Rs. 1,239 Cr from Rs. 1,521 Cr in Q1FY26. EPS also moved down QoQ from Rs. 14.58 to Rs. 12.51 reflecting sequential margin moderation.
YoY view:
In Q2FY26, Zydus Lifesciences delivered strong YoY performance with revenue rising 17% to Rs. 6,123 Cr from Rs. 5,237 Cr last year. EBITDA grew sharply 38% YoY to Rs. 2,016 Cr from Rs. 1,461 Cr and net profit jumped 35% YoY to Rs. 1,239 Cr from Rs. 920 Cr in Q2FY25. EPS also improved 38% YoY to Rs. 12.51 from Rs. 9.06.
Also read: Chemical stock in focus after reporting 1,618% growth in net profits in Q2
News
Zydus Lifesciences reaffirmed its FY26 guidance, stating that the company remains confident of achieving its targeted top-line growth and profitability. Management maintained its EBITDA margin guidance at around 26% for the full year, despite near-term margin pressures from recent acquisitions such as Comfort Click.
Additionally, Zydus plans to launch over 25 new products in the US market during the current fiscal year, reinforcing its focus on expanding its global product portfolio and sustaining growth momentum.
The company’s board has given a nod to raise up to Rs. 5,000 crore through a mix of equity-linked routes including QIP, rights issue, preferential issue or private placement, in one or multiple phases. This fundraise will require approvals from shareholders and regulators, and a committee has been empowered to take all further actions and decisions for execution.
About the company
Zydus Lifesciences Ltd is one of India’s leading pharmaceutical companies with strong presence across branded formulations, generics, biosimilars and specialty products across India and global markets including US. The company continues to scale growth through focused R&D, new product launches especially in the US market, complex generics pipeline, biologics expansion and strategic acquisitions.
The company is also showing strong capital efficiency with ROCE at 24.3% and ROE at 21.2%. The company maintains a healthy dividend payout of 21.1%.
Written by Manideep Appana
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