Zydus Lifesciences Ltd

ESG rating update

• CRISIL assigned a total ESG score of 66 for FY2025-26, up from 61.
• CRISIL framework classifies 61-70 as 'strong'.
• Disclosure is in compliance with SEBI LODR Regulation and SEBI circular requirements.

Promoter-group share transmission

• Transmission of 32,577 shares from Late Jasodaben Babubhai Patel to Mr. Prashant Patel (Promoter Group).
• Disclosure filed under Form B in accordance with PIT Regulations 2015.

Business Overview

• Diversified global life-sciences company spanning India formulations, biosimilars, vaccines, consumer wellness, and MedTech.
• FY26 revenue US$3 bn+, EBITDA US$959 mn, R&D spend US$257 mn.
• India Formulations revenue FY26 INR 65,740 mn.
• NDA submissions and acquisitions anchor growth: Saroglitazar Magnesium; Rolvedon; Amplitude Surgical.
• Forecasted expansion through biosimilars, vaccines, and international markets.

Key Operational Highlights

• Saroglitazar Magnesium NDA submitted in Q1 FY27; US Priority Review.
• NDA3 expected approval by Q4 FY27.
• Tishtha: first Nivolumab biosimilar launched in India.
• Amplitude Surgical to function as MedTech platform; Andy robotic solution CE-marked.
• LiqMeds: out-licensed portfolio; UK facility; 14 US filings; 10 approvals; 7 launches.
• Vaccines portfolio: 16 vaccines with Indian approvals; WHO PQ progress.
• International markets growth; biosimilars and specialty therapies focus.
• US generics: 30-35 ANDAs filed annually; 14 USFDA filings; 10 approvals; 7 launches.

Financial Performance

• Group FY26 revenue US$3 bn+; EBITDA US$959 mn.
• FY26 India Formulations revenue INR 65,740 mn.
• FY26 R&D intensity about 8.4% of revenue.

Capital Structure & Liquidity

• No material capital structure changes disclosed in this update.

Strategic Priorities & Outlook

• Monetize diverse pipeline; expand international markets; grow biosimilars, vaccines, and MedTech.
• Expand partnerships, in-licensing, and acquisitions to accelerate growth.
• Invest in R&D and capacity to support global launches and complex therapies.

Risks & Mitigation

• Regulatory approval timelines (US) pose execution risk; mitigated by pre-launch capabilities and diversified portfolio.
• Geographic diversification reduces concentration risk across markets.

Governance & Leadership

• Pankaj Ramanbhai Patel – Non-Executive Chairman; extensive pharma experience.
• Dr. Sharvil Pankajbhai Patel – Managing Director.
• Independent directors reinforce governance framework and board oversight.

ESG rating disclosure

• ESGRAIL assigned overall ESG rating of 60; company did not engage ESGRAIL; rating based on public information.

Regulatory approval

• US FDA grants final approval for Ascorbic Acid Injection with 180-day CGT exclusivity.
• Manufactured at Jarod, Gujarat, USFDA-approved injectables facility; marketed by Zydus Pharmaceuticals (USA) Inc.
• Brand US sales for the product were USD 11.6 million (IQVIA MAT June-2026).
• Group now has 448 approvals and filed 513 ANDA with USFDA as of 30 June 2026.

Financial Performance

• Consolidated revenues ₹80.2 billion, up 22% YoY.
• EBITDA margin 24.1%; EBITDA ₹19.3 billion.
• Net profit ₹9.4 billion.
• Net debt to EBITDA 0.7x as on 30 June 2026.

Segment Highlights

• India branded formulations +20% YoY; broad-based growth.
• Chronic/sub-chronic portfolio 54.2% per AWACS MAT Jun 2026.
• International formulations ₹9.7 billion, up 34% YoY.
• North America ₹31 billion revenue; QoQ +5%; 5 ANDAs filed; 9 approvals (incl 4 tentative); 11 launches.
• US branded share ~10% of US revenue; target >15% by year-end.
• Canada: 2 ANDA approvals and 2 launches.
• Consumer Wellness ₹14.3 billion, +67% YoY; intl +25% like-for-like; domestic +5%; skincare +35%; nutrition +16%; seasonal brands de-grew.
• Medical devices ₹2.8 billion; focusing on focused therapies.

Operations & Capex

• Zydus Biotech Park injectable facility received EIR with VAI after GMP inspections.
• JV with Sunshine Healthcare to establish Sri Lanka manufacturing facility.
• FY27 capex guidance ₹1,500-₹1,600 crores.

Innovation & Pipeline

• US FDA priority review for Saroglitazar Magnesium (PBC).
• India: Desidustat Phase III in sickle cell disease with ICMR collaboration.
• Phase III ADC Biosimilar in India; MR vaccine dossier accepted by WHO.
• 505(b)(2) portfolio: 19 in-house; 8 partnered; 4+ launched.
• Rolvedon acquisition gives ~$15-20 million per quarter run-rate.

Guidance & Outlook

• FY27: strong double-digit revenue growth; India +300-500 bps vs market; US single-digit.
• Branded portfolio expected to exceed two-thirds of revenue in the medium term.
• EBITDA margin guided at 24%+ for FY27; long-term 28-30% by ~5 years.
• Saro: FY28 launch; first 2 years investment; peak sales potential $200-300 million base; up to $400m+.

Q&A Takeaways

• Q1 guidance reaffirmed: strong double-digit revenue growth; India outpacing market by 300-500 bps.
• Capex color: SEK/SEZ3 expansions, Moraiya/Goa/Baddi, new R&D center; one-off wellness land; CAR-T facility.
• Rolvedon and Assertio: run-rate ~$15-20m per quarter; US pipeline expanding with 505(b)(2) assets.
• Desidustat China progress: approved; NRDL reimbursement pending; 120 million CKD patients imply long-term upside.
• Indocyanine Green launch with 180-day CGT exclusivity; US pipeline to support growth beyond 2026.

Meeting Details

• Date: Aug 24–26, 2026; times not specified.
• Type/Mode: Non-Deal Roadshow; group, physical meetings in Singapore and Hong Kong.
• Event: Investor Conference / Non-Deal Roadshow.
• Key participants: Company management.
• Purpose: investor interaction.

Meeting Details

• Date: August 17, 2026 (originally August 18, 2026).
• Type/Mode: investor conference (group event; mode not specified).
• Organizer: Motilal Oswal 22nd Annual Global Investor Conference, 2026.
• Purpose: participation in the investor conference.
• Key company participant: Company Secretary and Compliance Officer.

AGM Details

• Date: August 11, 2026; via Video Conferencing / Other Audio Visual Means.
• Cut-off date: August 4, 2026; total shareholders: 406,435.
• Shareholders attended via VC/OAVM: 106.

Resolutions & Outcomes

• Res 1: Adoption of standalone financial statements; Ordinary; Passed.
• Res 2: Adoption of consolidated financial statements; Ordinary; Passed.
• Res 3: Final dividend of Re 1 per equity share; Ordinary; Passed.
• Res 4: Re-appointment of Pankaj R. Patel as director; Ordinary; Passed.
• Res 5: Re-appointment of Nikesh M. Patel as director; Ordinary; Passed.
• Res 6: Ratification of remuneration to Cost Auditors; Ordinary; Passed.
• Res 7: Re-appointment of Sharvil P. Patel as Managing Director; Ordinary; Passed.
• Res 8: Appointment of Kulin L. Albhai as Independent Director; Special; Passed.
• Res 9: Payment of commission to non-executive directors; Special; Passed.

Directors & Auditors

• Managing Director reappointed: Sharvil P. Patel.
• Independent Director appointed: Kulin L. Albhai.

Material RPTs & Other Approvals

• Material related party transactions: None disclosed.
• Cost auditor remuneration ratified (Ordinary).