Zydus Lifesciences’ Q1 profit slid 35.9% YoY to ₹939.8 cr, while revenue climbed 22% to ₹8,017 cr, underscoring a widening gap between top‑line growth and profitability. EBITDA fell 7.6% to ₹1,929.4 cr, pulling the margin down from 31.8% to 24.1%.
North American formulations saw a 2.6% YoY decline but posted a 4.9% sequential increase to ₹3,098 cr, driven by steady volume and new launches. India‑branded formulations kept pace with market growth, and international and consumer wellness segments maintained momentum.
A US Food and Drug Administration inspection of Zydus’ Ahmedabad SEZ II plant, held from 21‑28 September 2026, ended with a single observation and no data‑integrity findings. The company said it will work closely with the FDA to resolve the issue promptly.
In parallel, the firm secured final FDA approval for its generic Ascorbic Acid injection, projected to generate $11.6 million in annual U.S. sales and qualify for 180‑day exclusivity under the Competitive Generic Therapy designation.
Shares closed 0.6% higher at ₹1,211.10 on the NSE, marking a 32% YTD gain and a 22% rise over the past 12 months, reflecting market confidence in the company’s resilience amid regulatory scrutiny.
Investors will turn to the upcoming Q2 earnings release for further guidance on margins and international expansion plans.