Zydus Lifesciences shares declined 2.33% to ₹1,163.30 at 9:24 am on Wednesday following the announcement of mixed Q1 FY27 results. According to Moneycontrol, the stock continues to be closely watched as a constituent of the Nifty Next 50 index, with the latest trading reflecting heightened activity and investor focus. Despite the profit decline, analysts at Nuvama have upgraded the stock to 'Buy' with a higher price target, showing confidence in the company's long-term prospects. The stock had previously rallied over 6% to close at ₹1,191 apiece on Tuesday after the results announcement.
According to latest reports, Zydus Lifesciences Limited reported mixed financial results for Q1 FY27. Net profit declined 36% year-on-year to ₹939.8 crore in the June quarter, with the company reporting ₹939.8 crore compared to ₹1,467 crore in the previous year. However, revenue surged 22% to ₹8,017 crore from ₹6,574 crore in the same quarter last year. The company's EBITDA fell 7.6% YoY to ₹1,929.4 crore in Q1 FY27, down from ₹2,089 crore in the year-ago period, while EBITDA margins contracted to 24.1% from 31.8% in the previous year. On a sequential basis, revenue increased 5.7% while net profit declined 26.1% and EBITDA fell 24.5%. The decline in profitability was largely due to a steep increase in costs, with purchases of stock-in-trade nearly doubling during the quarter and other expenses rising around 45% YoY, weighing on margins.
On August 11, 2026, Zydus Lifesciences issued a press release and investor presentation, followed by a Board Meeting Outcome regarding the unaudited financial results for the quarter ended June 30, 2026. The company has declared a final dividend of ₹1.00 per share (100%) for the year 2026, with an effective date of July 24, 2026. This follows the company's track record of rewarding shareholders through dividends, with a final dividend of ₹11.00 per share (1100%) declared in 2025 and ₹3.00 per share (300%) in 2024. Historically, the company has also undertaken a stock split in October 2015, changing the face value from ₹5 to ₹1, and issued bonus issues including a 1:2 bonus in 2010 and a 1:1 bonus in 2006.
As reported by the company, a Q&A session through webinar is scheduled for Tuesday, August 11, 2026 at 4:00 PM (IST) to discuss the Q1 FY27 results with investors and analysts. Dr. Sharvil Patel, Managing Director of Zydus Lifesciences Limited, will be hosting the call. The company has not disclosed any details about the dividend declaration in the latest announcement.
According to the latest results, Zydus Lifesciences reported strong performance across key business segments. India formulations business registered revenue of ₹1,815.8 crore, up 19.5% YoY, contributing 23% of consolidated revenue, with growth broad-based across chronic, acute and super-specialty therapies. The company outperformed the Indian pharmaceutical market in cardiology, diabetology, gynaecology, anti-infectives, pain management, oncology and nephrology, with its chronic and sub-chronic portfolio now accounting for 54.2% of domestic sales. The North America formulations business reported revenue of ₹3,097.9 crore, down 2.6% YoY, though it grew 4.9% sequentially, contributing 40% of consolidated revenue. During the quarter, the company filed five ANDAs, received approvals for nine ANDAs, including four tentative approvals, and launched 11 new generic products, while also launching Nufymco, its first biosimilar in the US market and completing the acquisition of Assertio Holdings. The consumer wellness business was the fastest-growing segment, with revenue surging 67.2% YoY to ₹1,429.2 crore, accounting for 18% of consolidated revenue, driven by strong performance in skin and hair care as well as food and nutrition brands. The international markets formulations business posted revenue of ₹973.5 crore, up 34% YoY, accounting for 12% of consolidated revenue, while the pharma business, which accounted for 78% of consolidated revenue, reported sales of ₹6,090 crore, up 8.6% YoY.
During the quarter, Zydus Lifesciences invested ₹642.4 crore in research and development, equivalent to 8% of revenue, while organic capital expenditure stood at ₹585.2 crore. The company received significant regulatory progress with the US Food and Drug Administration granting priority review to the New Drug Application for Saroglitazar Magnesium for the treatment of Primary Biliary Cholangitis. Additionally, the company received approval in India to initiate Phase III clinical trials of Desidustat in patients with sickle cell disease, advanced its biosimilar pipeline and expanded its vaccine programme with progress in typhoid, chikungunya and measles-rubella vaccines. As per The Economic Times, the company's managing director Sharvil Patel noted that FY27 is off to a strong, profitable start and that the branded portfolio now exceeds 55% of revenues, with the share of branded sales in the US reaching 11% and expected to expand with the upcoming Saroglitazar launch.
