Zydus Lifesciences hosted a conference call on Nov 6, 2025. In the conference call, the company was represented by, Dr. Sharvil Patel, Managing Director.

Key takeaways of the call

In Q2 FY26, the India business contributed 37% to the total revenue, with Formulations accounting for 26% and Consumer Wellness for 11%. US Formulations contributed 45%, International Formulations 13%, APIs 2%, and Medtech and others 3%.

In Q2 FY25, the India Formulations business grew 8.4% YoY, Consumer Wellness was up 30.7% YoY, US Formulations rose 13.5% YoY, and International Formulations increased 39.4% YoY. Revenue from the API segment increased 23.3% YoY, and the Alliances & Others segment was down 85.1% YoY.

In H1 FY26, the India business contributed 37% to the total revenue, with Formulations accounting for 25% and Consumer Wellness for 12%. US Formulations contributed 47%, International Formulations 12%, APIs 3%, and Medtech and others 1%.

In H1 FY26, the India Formulations business grew 8.2% YoY, Consumer Wellness was up 12.7% YoY, US Formulations rose 7.5% YoY, and International Formulations increased 38.1% YoY. Revenue from the API segment increased 16.8% YoY, and the Alliances & Others segment was down 68.7% YoY.

Management expects EBITDA margin to stay above 26% in FY26.

India formulation business: During the quarter, the company Launched VaxiFluTM, India’s first trivalent influenza vaccine for flu protection, aligning with the global recommendations of WHO. Branded formulations business grew faster than the market with 9% YoY growth driven by sustained traction in innovation products and pillar brands.

In Q2 FY26, India formulations business outpaced the market growth in key therapies of Cardiology, Gyanecology and Oncology. On the super specialty front, the company continued to retain leadership position in Oncology segment.

In Q2 FY26, Cardio-Diabeto contributed 18% to India Formulations segment revenue, Respi 14%, Gynae 7%, Onco 9%, Nephro 3%, Hepato 0.4%, GI 9%, Derma 6%, Pain 8%, Anti-infectives 13%, and others 14%.

Share of chronic portfolio has increased consistently over the years and stood at 44.5%, which is an improvement of 500 bps over the last 3 years.

Consumer Wellness business: the company acquired UK-based Comfort Click (CCL), marking the first international acquisition in the wellness space. The acquisition will significantly strengthen the international presence across key markets of the UK, EU and US. CCL is among the fastest-growing digital consumer healthcare platforms in high growth VMS space and derives most of its revenues from E-commerce and D2C channels. CCL’s portfolio includes three brands: WeightWorld™, offering plant-based supplements, vitamins, minerals, collagen, omegas, probiotics, micronutrients, and sports nutrition for adults; Maxmedix™, a specialty VMS gummy brand for pediatric nutritional needs; and Animigo, a natural pet VMS brand with a range of pet-care products.

US formulations business: In constant currency terms, the business registered revenues of US$ 313 mn in Q2 FY26. During the quarter, the company launched 7 new products, filed 6 ANDAs, and received approval for 4 ANDAs (including 1 tentative approval).

The company has planned a total of 25 plus launches for FY26.

In October 2025, it launched Beizray (albumin-solubilized docetaxel injection), strengthening its 505(b)(2) specialty portfolio. The company also received its first Notice of Compliance (NOC) in Canada for Varenicline tablets (0.5 mg & 1 mg), bringing the total NOCs received so far to 3, including 2 in October 2025.

International Markets formulations: The company reported broad-based growth across regions, with strong demand-driven performance in both emerging markets and Europe, supported by focused execution.

In Europe, focus remains on expanding the offerings and enhance the market coverage.

Medtech business: Recently, in October 2025, acquired the remaining 14.4% stake in Amplitude Surgical after acquiring 85.6% during Q2 FY26 and thus completed 100% stake acquisition in the Company.

With the 100% acquisition of Amplitude Surgical, the company is not just dabbling in MedTech; they are serious about building a device / surgical business.

Compliance: Received EIR with No Action Indicated (NAI) status from the USFDA in November 2025 for the Pre-Approval Inspection (PAI) of formulations manufacturing facility located at SEZ II, Ahmedabad conducted in August 2025.

Innovation Pipeline: Reported positive topline results from the pivotal EPICSTM-III Phase 2(b)/3 clinical trial of Saroglitazar Magnesium in patients with Primary Biliary Cholangitis (PBC) for the US market. The trial met the primary endpoint, with a statistically significant treatment difference in the percentage of patients achieving a clinically meaningful biochemical response with Saroglitazar compared to placebo. Preparing to file New Drug Application (NDA) of the molecule with the USFDA in Q4 FY26.

Emphasis from management on continuing to invest in innovation / pipeline.

Vaccines R&D: The company Received regulatory approval to initiate Phase II clinical trial of Bivalent Typhoid Conjugate Vaccine in India.

The board has approved raising Rs 5,000 crore via equity to strengthen balance sheet, reduce debt, and support growth.

Capex (organic) for the quarter was Rs 491 crore. Capex for H1 FY26 was Rs 893.1 crore.

In Q2 FY26, R&D investments amounted to Rs 482 crore, accounting for 7.9% of the total revenue.

Net Debt to Equity ratio as on 30 September, 2025 was 0.09x, while Net Debt to EBITDA stood at 0.3x.