Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Zydus Lifesciences Ltd (NSE: ZYDUSLIFE) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Dr. Sharvil P. Patel — Managing Director
Ganesh N. Nayak — Director
Analysts:
Unidentified Participant
Presentation:
Operator
Good day and welcome to Zidus Life Sciences Earning conference call for the fourth quarter FY26. Please note all participants line will be in listen only mode and there will be an opportunity for you to ask questions after management’s opening remarks. Should you need any assistance during the conference, please raise your hand from the participant tab on the screen. While asking questions, request you to please identify yourself and your company. Please note this conference is being recorded. I now hand over the conference to Mr.
Ganesh Nayak, Director at Zaiden’s Life Services. Thank you, thank you. And over to you sir.
Dr. Sharvil P. Patel — Managing Director
Hello.
Operator
Yes sir.
Dr. Sharvil P. Patel — Managing Director
We couldn’t hear the last part. What is that?
Operator
Please do. This conference is being recorded. I now hand over the conference to Mr. Ganesh Nayak, Director at ZS Life Sciences. Thank you. And over to you sir.
Ganesh N. Nayak — Director
Good evening ladies and gentlemen. It’s my pleasure to welcome you all to our post results Teleconference for the fourth quarter and the financial year ended March 31, 2026. For today’s call, we have with us Dr. Shavil Patel, Managing Director, Mr. Tushar Shroff, CFO Mr. Arvind Bhotra, Head of Investor Relations and Mr. Alok Garg from the Managing Director’s Office. To begin with, let me give you an overview of the performance for the year. I’m happy to inform you that we have ended the fiscal 2026 on a strong note.
Overall, we delivered healthy double digit growth during the year ahead of our expectations. Even after adjusting for acquisitions, the base business grew in double digits. This reflects the underlying strength of our operations. On the profitability front, we surpassed our expectations achieving the highest ever operating profit and as well as margins during the year. A strong product mix combined with operating leverage and forex tailwinds propelled profitability in the pharma space. Our US Formulations business grew on a higher base of the previous year despite the increased competitive intensity in key products base business volume expansion, new launches and sustained traction in the specialty portfolio drove growth during the year.
Our branded formulations business in India outpaced the market with strong double digit growth supported by healthy volumes and new product introductions. Our international markets business spanning emerging markets and Europe sustained strong momentum with demand led growth across geographies. We expanded into the international consumer wellness space by acquiring and integrating UK based Comfort Limited. This move establishes our footprint across the uk, EU and the us. It significantly strengthens our presence in the high growth VMS segment covering adult nutrition, pediatric wellness and animal health.
On the medical devices front, we took significant strategic steps as we established it as one of the three business verticals for Zydus. We acquired the French orthopaedic firm Amplitude Surgical and entered the nephrology and cardiovascular devices space. These moves position us well for the next phase of our growth. We are also accelerating our digital transformation. Advanced analytics, automation and AI are now embedded into our operations, improving efficiency and the way we serve our stakeholders.
With that, let me take you through the financial numbers for the year gone by. We recorded consolidated revenues of 271.5 billion rupees, up 17% on a year on year basis. The business delivered strong operating performance with an ebitda margin of 31.2%, which is an improvement of 80 basis points over the high base of the previous year. Consequently, the consolidated EBITDA for the year grew by 20% to 84.8 billion rupees. Net profit adjusted for exceptional items for the year was 54.6 million rupees, up 15%.
Thanks to our strong financial performance and disciplined financial management, we kept our net debt to EBITDA ratio comfortably within the benchmark levels even as we pursued several inorganic growth opportunities. During the year, our net debt to EBITDA ratio stood at 0.5 times as on 31st March 2026. Coming to our quarterly financial performance, we ended the year on a strong trajectory. Our consolidated revenues for the quarter stood at 75.9 billion rupees, up 16% on a year on year and 11% on a quarter on quarter basis.
Our operating profitability continued to improve with an EBITDA margin of 33.7%, which is an improvement of 110 basis points on a year on year and 720 basis points on a quarter on quarter basis. EBITDA for the quarter stood at 25.6 billion rupees, up 20% on a year on year and 41% on a sequential basis. Net profit for the quarter, adjusted for the exceptional expense was 15.9 billion rupees, up 15% on a year on year and 43% on a quarter on quarter basis. Now let me take you through the operating highlights for the fourth quarter of FY26 for our key business segments in the pharmaceutical space.
North American Business, comprising of the US and Canada, registered revenues of 29.5 billion rupees during the quarter, up 5% quarter on quarter. Growth during the quarter was driven by volume expansion in the base business, new product launches and sustained attraction in this specialty and rare disease portfolio. On the US generics front, we filed three ANDAs received nine approvals and launched six new products during the quarter. On the US specialty front, in the month of April 2026 we filed two new product dossiers through the 505B2 route thereby bolstering our pipeline.
In the orphan and rare disease space, we launched Zycubo which is copper histidinate for the treatment of Menkesh disease which is an ultra rare disease. With this launch we now have three rare disease products marketed by Sentinel in India. Our branded business formulations business sustained its growth trajectory with a robust 15 year on year growth, outperforming the market growth for yet another quarter. Chronic segment continued to grow at a faster pace driving the overall growth of the business in terms of therapy performance, the business grew faster than the market in key therapies of cardiology, respiratory dermatology and in the super speciality areas of oncology and nephrology.
On the super speciality front we continue to retain leadership position in the oncology therapy. Contribution of the chronic portfolio has increased consistently over the last several years and stood at 46.3% as per IQA MAT March 26 which is an improvement of 620 basis points over the last three years. During the quarter we launched the world’s first biosimilar of Nivolumab under the brand name Tista, reinforcing our growing capability in advanced biologics and immuno oncology. This immunotherapy will reduce the treatment burden by making it accessible at approximately 1/4 the cost of the reference drug and is likely to benefit over 500,000 patients.
We also launched the country’s first indigenous indigenously developed biosimilar of afliber CEP 2 milligrams under the brand name Anira for advancing ophthalmic care. During the quarter we launched Semaglutide injection under the brand names Semaglin, Mashima and Altame. Foreign. Licensing and supply agreements with Lupin and Torrent Pharma for co marketing in India. Our international markets formulations business continued to deliver strong double digit growth with revenues of 8 billion rupees up 45% year on year.
The growth was broad based across regions with strong demand driven performance in both the emerging markets and Europe. Supported by focused execution, our consumer wellness business recorded revenues of 14.6 billion rupees up 61% year on year. In the domestic business we retain leadership position across most product categories that we operate in. Skin and hair care brands and food and nutrition brands registered growth of 39.7 and 9.4% respectively whereas seasonal brands declined by 9.8%. International business, including the Comfort Click business, delivered a like to like growth of 31.4% in the medical devices space.
The business performed in line with expectations and registered revenues of 3.3 billion rupees. We expect the business to deliver steady performance in the coming quarters. This will be driven by expanding our geographic presence to capture newer markets, unlocking cost synergies over time to improve profitability and leveraging our technology driven advanced portfolio to deliver superior patient health outcomes. On the operations front, our Oncology Injectable Manufacturing facility located in the Ahmedabad SEZ received an EIR Establishment Inspection Report for the pre approval inspection conducted in the month of November 2025.
This concludes the business review. I would now request Dr. Shahril Patel to take you through through the key drivers across businesses as well as initiatives in our Innovation program. Thank you,
Dr. Sharvil P. Patel — Managing Director
Thank you Mr. Naik and good evening ladies and gentlemen. It is our pleasure to have you all here today on the call. Fiscal 2026 was remarkable with robust double digit growth and record operating profitability. Even excluding inorganic moves, the base business delivered strong double digit growths reflecting the strength of our portfolio, our pipeline of innovation and the resilient supply chain and strong execution capabilities. Over the last couple of years we undertook several inorganic initiatives to acquire new capabilities to expand our offerings and enable the patients to fulfill their diverse health care needs.
These organic moves coupled with various business development initiatives have complemented the existing business well and will be the key pillars for sustained long term growth going forward. In the US market, we ranked amongst the top three players in the generic space backed by a rich and differentiated products portfolio built in house as well as through partnerships. As we pivot towards specialty, we are driving growth through multiple levers. Our 505E2 pipeline built via in house development, partnerships and liquids acquisition is expanding steadily.
Sentinel Pediatric Rare Disease portfolio is broadening access to innovative therapies in biosimilars. We have in licensed two large molecules and strengthen capabilities with the newly acquired US Manufacturing facilities. We shall maximize the utilization of these facilities through continued bot mal supply to agents and onboarding of new partners. Together these initiatives position us strongly to accelerate our specialty play. We are accelerating a US Specialty oncology strategy through the proposed acquisition of Assertio Holdings.
This is a pivotal move to provide us with an immediate high scale commercial platform in the oncology supportive care. At the heart of the deal is Robidon, a US FDA approved long acting biologic that anchors our portfolio by leveraging associates, deep oncology relationships and the strong share in Medicare Part B accounts. We are now not just expanding a footprint, we are building a highly differentiated high margin specialty oncology business in the US that is accretive and establishes a strong platform for the future.
The India formulation business remains a compelling growth story for us. Our branded portfolio once again outpaced the market with strong double digit growth driven by consistent strength of our brands, sharper therapy focus and a pipeline built around differentiation and unmet needs. Years of this deliberate strategic interventions have created a compounding effect, broadening our reach, deepening our customer trust and accelerating our commercial momentum. What makes this especially meaningful is that our engagement extends well beyond the point of prescription.
Through patient support programs and value added services, we remain a dependable partner at every step of a patient’s healthcare journey. Our international markets formulations business spanning emerging markets in Europe have consistently delivered strong double digit growth over the past several quarters. In emerging markets we are driving performance through a therapy led approach, tailoring solutions to local needs and building a more agile market responsive portfolio. In Europe our focus is on expanding portfolio breadth and strengthening market coverage positioning us to capture incremental growth and deliver enhanced value to our customers.
Our consumer wellness business continues to drive our growth fueled by category leading brands and a shift towards premiumization. We are aggressively expanding into nutrition and vitamins, minerals and supplements space while scaling our digital footprint through comfort click acquisition. Our focus remains on innovation and digital first segments ensuring we build a future ready portfolio that delivers consistent results for our stakeholders. In our medtech business we are strategically focused on three critical areas cardiology, Nephrology and Orthopedics to build strong growth engines for growth with amplitude Advanced Orthopedic portfolio bringing cutting edge innovations to patient surgeons and healthcare facilities worldwide.
In cardiology we are broadening our offerings to meet evolving clinical needs while in Nephrology we’re establishing a high end dialyzer membrane facility to address the global rising demand. These initiatives underscore our commitment to deliver superior patient outcomes and build a strong sustainable growth engine for the future. With this, let me share some material developments on the innovation front during the quarter. Our desiduced tablets which we licensed to China Medical Systems holdings in 2020 has now received approval from the Chinese regulators for the treatment of renal anemia.
This marks a significant milestone for us as an approval has come in China, the second largest pharmaceutical market globally, reinforcing our global potential of our innovation pipeline. The US FDA has also granted Orphan Drug designation status to Desilustat for the treatment of sickle cell disease. During the quarter, our novel antimalarial candidate Zintodiazine received the approval from the DCGI to conduct two phase 3 clinical trials in patients with uncomplicated malaria due to both Plasmodium falciparum and Plasmodium vivax in India.
In the Biotech R and D space, we initiated a phase 3 trial of a second biosimilar ADC in India. On the novel biologics front, we initiated a phase 1 clinical trial for one new candidate and pre clinical studies for another candidate in India during the quarter. On the global development front, the in licensed Premolizumab biosimilar candidate FYB206 successfully completed the clinical development marking a major step towards U.S. FDA filing. On the 5 my B2 front, we enter into an agreement with PRG S&T, a Korean company specializing in the development of medicines for rare genetic diseases, to license its investigational molecule progerian SLC D011 for Hutchinson Guilford Progeria Syndrome.
We shall acquire full rights to this drug candidate upon achieving certain milestones, making it a second therapy intended for the treatment of hgps. Thank you and we now will start with the Q and A session over to the coordinator for the Q and A.
Questions and Answers:
Operator
Thank you sir. We will now open the call for Q and A session. We will wait for few minutes until the queue assembles. We request participants to register to do questions and then return to the queue for more questions. Please raise your hand from the participant tab on the screen to ask the questions. The first question is from Kunal Dmesha.
Unidentified Participant
Hi, this is Kunal from Macquarie. Thanks for taking my question and congratulations on both side of numbers. First one for you know FY26 has been exceptionally strong for us. You know where do you see FY27 you know from the growth perspective as well as the profitability perspective. Any outlook here would be helpful.
Dr. Sharvil P. Patel
Thank you Kunal. So I think on we are very happy with the 2026 performance. I think looking forward I think on the consolidated revenue we we still continue to see high teens growth for FY27. We do expect that in spite of a high base of FY26 for North America we will still see a growth single digit growth in the North American business aided by the portfolio in India. We have now consistently demonstrated better than market growth and we are thinking we will outperform the market by 200 to 400 basis points versus the current IPM.
On the international markets we have seen very significant 40 plus percent compound. I mean growth for the year and 45% for the quarter and we see that momentum continuing also in the current year and with the consumer on the consumer side also we see a good momentum on double digit growth. So I think overall on the revenue side we see strong momentum for the organization. On the margins front we ended this quarter at around 25 point, around close to 26% I think FY27 looking at competition also Revolution competition, Mirabeground competition, expenses related to SARO launch we are expecting margins in excess of 24%.
Sure.
Unidentified Participant
That is this
Dr. Sharvil P. Patel
Still assumes a 8% plus R D expense.
Unidentified Participant
Okay, perfect. And on the specialty front, you know now we have almost three molecules especially the rare disease molecule in the market through Sentinel. We also have kind of 505v2 portfolio through ZTUO ZTUO Med. Right. So if you put all these together which are, let’s say you know, high entry barrier kind of molecule, what would be the current contribution of this portfolio? And with our pipeline that we have Saroglitazar for PBC desidousat in China where do we see this contribution going over the next three to four years for our overall business?
Dr. Sharvil P. Patel
So currently see I think we are building on the three legs that you just mentioned. We have Sentinel which has now three approved drugs and with this it has become, you know it has broken even and it started going to make profits going forward. I think with adding more portfolio to that business we would see that business scale up. But these will not. This will be high profitable businesses but not high value driven businesses. On the Firefib 2 we have now today obviously sitaglyptin franchise. The scale up is more getting along with our oncologic supportive care through the licensing that we did on bay with also the LICMEDS portfolio scaling up I think this will become a more faster scalable business very soon and also very profitable as we are able to launch these products including Rani Bizumab by end of the year.
So we would see I think 27 onwards good momentum and size for this business to this is just the beginning I would say this year so 20 FY28 would be seeing a stronger momentum but this year also will be quite good growth for these businesses. And finally SARO we are still in the early commercialization in the sense of hiring teams and preparing for the pre launch activity. As we come closer to approval launch we can share more details. But overall yes, our vision is that our non generic specialty portfolio will be the meaningful growth driver for the organization over the next three to five years.
Unidentified Participant
Sure that is great. Lastly on this Assertio potential acquisition Assertio how that kind of fits into I mean all these three growth driver the product rolled on we have seen it’s primarily for the on course supportive care namely competing with tech fill grass team if I’m correct. Right. So how does that you know within that space that product kind of how is it positioned? I believe Pacquiao Grassim also has an device which kind of lets people administer the therapy at home rather than spending another day in clinic.
So how rolled on compares there as well as on some bit of clinical efficacy and safety side for us to kind of you know be more positive and how are you seeing positioning this molecule?
Dr. Sharvil P. Patel
So we already have a supportive oncology team which currently markets Beesrey. We have also partnered with RK for one more future supportive552 which has been filed and we hope in the next nine to 12 months we will see the approval and launch this again adds to the portfolio of this team for launch. So we have already a commercial platform to launch Rolvidome today. You know we believe it has around a 4% volume share. It has many benefits. One it’s a. It’s still a novel long acting GCSF and not a biosimilar and it also can be administered the same day versus the other biosimilars or biologics in the market.
So there is a benefit to that and we see the good momentum the business tracking and we are very confident on once the equation is closed how do we integrate it with the business and scale it up. So that’s the overall plan with currently will be a pipeline of three. We also have Rani Bizumab launch coming and we see also that with the current team and certain resources we can use them them also for the scale up of Ranibizumab.
Unidentified Participant
So so the commercial presence would be leveraged across many fronts. Right Is the way to look at it. Yes. Assert your presence and okay. And then the 24/EBITDA margin guidance makes in that incremental commercial presence that we are going to build for let’s say sorrow or maybe let’s say for a search team at Circle.
Dr. Sharvil P. Patel
Yes. Assertion we’re not building yet but SARO is part of our plan. But assertion will not have a cost. I mean we’ll see more synergies versus cost.
Unidentified Participant
Sure. I have more question. I’ll join with it. Thank you.
Operator
Thank you. The next question is from Neha man.
Unidentified Participant
Thanks for taking my question. My first question is on the India business. I think you mentioned you know, 200 to 400 basis points higher growth in India versus the market. I can see that obviously there has been an improvement in growth in the last few quarters for Zydis. Could you talk a little bit about, you know what, what gives you the confidence on maintaining this outperformance incrementally? Where would you see more growth coming from in India? And second, just a related question on India.
Do you think we need to make more investment in India either through Mr. Expansion or probably acquiring more products to boost growth or you know, you think the investment place and therefore this growth should drive margin expansion for the business.
Dr. Sharvil P. Patel
Currently we don’t see any further rep investment in the short term. I think the growth we are confident on the growth driven by the innovative portfolio which is scaling up very meaningfully. Our focus on the growth booster brands that we have been speaking for the last two years now which is delivering better growths now also we are seeing a very strong traction on our key therapies with the launches and monetization of our portfolio on biosimilars and also the new launches that we have done and continuously we are improving our chronic share consistently over the last few years and that is also aiding to better mix in terms of the business.
So I would say it’s an all round performance with many things. Obviously innovation led also but also focus on brand building on our core brands is helping us succeed.
Unidentified Participant
Understood. And second, you mentioned about the SRO investment. Could you provide some color on what you think the investment for SARO would be in fiscal 27 to build out the commercial and you know given that we’ve also A second another unrelated question given the investments that we made in different areas, you know CDMO, MedTech, specialty business. Now with you know Associio, could you provide us some, you know, milestones that we need to watch to give us confidence on when we should see this business becoming more meaningful, you know, to Zydus as a whole.
Dr. Sharvil P. Patel
So on SARO for this year we’ll have an additional 7 million kind of investment on the commercialization part on Saro that is what we are factored in and with respect that
Unidentified Participant
Number. What did you say? Apologies. Thank you.
Dr. Sharvil P. Patel
With respect to social, I mean it’s still, we still have to close on the deal but we see it being an accretive deal to the organization. So that’s what we can say now
Unidentified Participant
Post I think closure we can talk about more. And for the other businesses, sir, sorry. And you know we’ve done like CDMO, we’ve done MedTech there’s obviously, you know, comfort click, you know. So for these, what do you think would be a good inflection point for us to start seeing meaningful contribution to Zydus’s performance for Medtech? Yes, we are seeing amplitude already contribute but do you think, you know, the scale up in this business in terms of what we have envisaged would take take us a couple of years or do you think that could be witnessed in 27, 28?
Dr. Sharvil P. Patel
The, the medical devices business is a platform build that we are going through. So it will take at least three to four years before we see a strong momentum. But I think we would see improvement of cost and profitability as we build more synergies. On the comfort click business is already a strong growth business. For the last six months post acquisition it has delivered honest numbers and it is already EPS accretive in this fourth quarter and going forward also will be EPS accretive. So I think that’s on track.
It’s a steady growing, fast growing business and is getting integrated well with the organization. On the genus, on the acquisition of the manufacturing on Xylidac again that’s beginning I would say so we would need the next two years to build capabilities. What it gets is obviously immediate supply for the bot bal to a genus which will continue and we’re seeing good traction there. But as we add more partnerships and maybe more products, we would see better utilization of the facility over the next three years.
But it will take at least next three years before we see that facility being well utilized.
Unidentified Participant
And this broadband contribution isn’t very meaningful at the moment. Right sir, it’s just incremental, but it’s not like a big revenue contributor. That would be a fair assumption.
Dr. Sharvil P. Patel
Yeah, so it, yeah, we are. It’s not going to be significant, but it’s around 10 to 15 million revenue.
Unidentified Participant
All right, thank you so much.
Dr. Sharvil P. Patel
Thank you.
Operator
Thank you. The next question is from Harid Ahmed.
Unidentified Participant
Hi, Hope I’m audible. My first question is Sarah Guitazara. So we are guided for a 4Q526 filing in PBC indication. So can you give an update on the status of that? And, and if it’s filed, do we have a gold date from the fda?
Dr. Sharvil P. Patel
So in a new NDA filing, once the acceptance of the NDA happens, we can give you the gold date. So I think we will update you once we have acceptance of the NDA.
Unidentified Participant
So it’s, it’s filed but we’re awaiting the acceptance.
Dr. Sharvil P. Patel
Yeah, we have to await the acceptance of the NDA which is the more important milestone.
Unidentified Participant
Okay, got it sir. You know Semaglutide in India, can you give us a sense of the rationale for our out licensing strategy here to Loopen and Torrent? Given we have a very differentiated reusable pen device, what was the thought process behind going along with our own launch, licensing it out to partners and then from a realization standpoint per device, how different is our own sales versus sales through partners?
Dr. Sharvil P. Patel
So I think we have launched a novel formulation on Sema. I think it is obviously as Zydus alone, we don’t cover each and every doctor and specialty. Also this being a highly competitive product with the multiple launches, we believe that the best strategy would be to launch with more players to create more share of voice and and more impact for the new formulation with the customers. I think that strategy has worked very well. I think we are now number two in terms of share and closely followed by Lupin and Torrent also has gained strong share.
So I think there’s a good choice on partners. Together we control a very meaningful part of the market share on Semaglutide which is also very important. And I think Loni grew from strength to strength there. What we have been able to demonstrate is a very reliable supply, very strong product with a highly reliable pen which has been the challenge in the market. First to market was also the big success for the for the US and the companies that launched with us. So we do see that this strategy of co partnering has helped in terms of gaining strong market share and share of voice and we hope this momentum will continue.
Unidentified Participant
And lastly on Rolver down, just to clarify, did you mention that the dosing schedule for this product is different versus Pexel grass film or, or is it the same?
Dr. Sharvil P. Patel
It’s not, it’s it. The main thing is it can be administered on the same day which is one of the benefits versus next
Unidentified Participant
Day for. Okay, got it sir. Thanks for taking my question.
Operator
The next question is from.
Unidentified Participant
Hi, good evening and congratulations on another good quarter. I have a question on R and D expenses which have ramped up quite rapidly. It appears that you know, almost 700cr of quarterly run rate, you know you have which is probably one of the highest in the industry here. Is it all organically driven? Because if I look at the employee expense within R and D that seem to have, you know, increased at a much more moderate space pace. And how should we think about this? 700 crores, like what are the key investments and if you can just split it up into generics, biologics, Vaccines and innovation.
Dr. Sharvil P. Patel
Sure. So I think yes, we believe R and D is a very critical part for our future growth and profitability and we have been consistently investing in that. Obviously we have a little bit of lumpiness during different quarters as we are guiding forward. We are seeing around 8% of FY27 is our current expectation on R D. The breakup is around for the last year is around 50% was on on generics and value added generics and the rest 43% 40 plus percent was on NCE biologics and vaccines. So that has been generally the breakup of R D.
As we move forward we would probably see a little bit higher uptick on the NCS and biologics and probably a similar to similar kind of number on in terms of absolute number on the generic side.
Unidentified Participant
Okay sir. The other one is on you know, SEMA where if you can give some color based on your initial experience in India, how large you think it can be for Zydus over the next two, three years and the device and pen that you have, is there something you would like to do even in other emerging markets with this product or is this largely going to be India specific, you know, opportunity?
Dr. Sharvil P. Patel
So I think good beginning to the launch in multiple ways. One is we, we do combine have one of the strongest market shares in the in this new device. So there’s been good acceptance to the product. We are seeing better forecast than earlier forecasted for all our partners and both Zaidas. So we are seeing a higher uptick and more confidence I would say going forward in terms of growth. So internally I think we are well poised to sort of do well in the Indian market with both the how it has gone and what the orders we have in and for the future to manufacture.
We have a plan to make sure that this new formulation is available across different markets. We already have a partnership slash registration plan for more than 20 plus markets which is already ongoing. We are not in the first wave in many of this but we believe with this differentiation and which will offer a significant cost benefit to the to the government and the patients, we would see a good momentum for the differentiated formulation in all of these markets. And we are going ahead with the filing and obviously partnerships in many multiple markets as we speak.
Unidentified Participant
Okay, any timeline in terms of launches? Is it expected in this year or next year?
Dr. Sharvil P. Patel
Depending on the cycle of approval. We could, I mean see some in this year or probably some early next year.
Unidentified Participant
Okay. And just I have one last question from my side. If you can guide for your capex number for next year FY27. And also depreciation number is high in the quarter. Is this the number we should bake in on an annual basis going forward?
Dr. Sharvil P. Patel
So yes, we have had an uptick on our capital investment because of multiple initiatives that we taken on expansion. So we are thinking in FY27 around a 1500 crore capex number and the quarterly depreciation is around 550 crores. Yeah.
Unidentified Participant
So Suzanne, this also includes you know the licensing fees that we have capitalized on the settlement of Mirabagron which will be charged up to 2027, September 2027. So it is a limited period charge off that we’ll have thereafter. There won’t be any kind of a cost that will be associated with this deposition. Understood. Thank you. Thank you.
Operator
Thank you. The next question is from Surya. Pat.
Unidentified Participant
Yeah, thanks for the opportunity sir and congratulations for the great set of numbers. I’ll start with couple of clarifications that I wanted. First is that whether what really led to this kind of sequential growth in the US business despite revlimid not being there or if it is there then you can qualify that. And also what is the kind of like to like growth in the US business that we would have seen for the full year FY26. That is one and another clarification that if you can give that. So about this $75 million which is still likely to be seen as a kind of amortization.
So beyond that there is no royalty you charge or anything, right? In case of Mirabegron
Dr. Sharvil P. Patel
There is a royalty charge.
Unidentified Participant
Okay. And regards the. Hello.
Dr. Sharvil P. Patel
Yes.
Unidentified Participant
Yeah. So are you quantifying the royalty charge sir or. That is one. And secondly about the U.S. Business, the sequential growth, what we have seen there is a positive surprise considering the no rev limit sales sequentially. So what has driven that and what is the like to like growth in the base business of the US for FY26?
Dr. Sharvil P. Patel
Yes, I think as we had stated in the last quarter also that we had very little rev limit contribution and I think this and I would say there are two, three factors. One is definitely you know, December end obviously there is destocking and you will see but we see a higher uptick during the Jan. Feb. March quarter. So there is a small incremental benefit that comes out of that. And also I think multiple levers of new products launches, the specialty portfolio scaling up. There have been many levers to good growth.
Also we have said that our base business continues to do healthily, be healthy and consolidate its share. So all of those things have helped us including some more share on mirabigron. So overall we are around the 300 plus million base right now.
Unidentified Participant
Okay, okay. So that means this is a kind of sustainable base even going ahead since you are talking about a single digit kind of growth for the next year despite no relevant revenue in the subsequent year.
Dr. Sharvil P. Patel
Yes.
Unidentified Participant
Okay sir, my second question is about the approach towards the biologics or biosimilar or the cdmo. So it is a comprehensive approach it looks like from the initiatives that you have taken either by creating capability in the biosimilar in the initial stage and building the BLES also and simultaneously trying to build kind of a CDMO capability in the biologic space. So given or putting all this together when this vertical is likely to be a kind of meaningful contributor to ciders, whether if can give some sense on that front then it would be helpful sir.
Dr. Sharvil P. Patel
So today the biologics part of our business is very scaled and meaningful contributor to our India business. And it’s all continues to do extremely well and we see that meaningful continued scale up with our partnerships and filings that we have done in the EM markets we would see over the next three years a meaningful scale up of our out licensing and launch of biosimilars in many of these markets which would add to the overall non U.S. On growth for the biosimilars business. I think in U.S. We have, you know we have thought it through well.
We have been waiting for regulatory framework to change to make it more, you know, beneficial to do the R D development and having seen that happen, I think in a very short period we’ve been able to license and co develop and plan our biologics business in the US and we would see, I would say on the next three years important milestone for biologics. But more importantly by 2029, FY29, FY20, FY30 we would see the real scale up on the global biosimilars business.
Unidentified Participant
Okay, next question is about the overall growth. See in fact FY26 was obviously a kind of a great year supported by Mirabegron, Revlimid then inorganic activities also. So for next year what would be your kind of capital allocation priorities or the investment priorities? Whether the momentum on the inorganic growth side that will continue the way that we have seen it was a kind of very heavy inorganic activity year that was for FY20 during FY26. So going ahead for FY27 your thought process about it.
Dr. Sharvil P. Patel
So yes, I think you know what we have been always trying to talking about is building new capabilities. When we look at our capital allocation strategy with new platform capabilities or new portfolio and if you see many of the inorganic opportunities that we have looked at we have seen where we can really build up capabilities and platform. So that has been good. And going forward also you know scaling up our specialty business with including 552 would be obviously one of the important areas that will continue to add portfolio too.
And I think beyond that I think we are I think have a good R D pipeline of products to come through which we are betting on and we are looking. It looks exciting for us so we are building towards that. So mostly it will be a you know bolt on expositions that we could look at from the specialty point of view. Also potentially, you know our international business is doing extremely well. You know I said growing at 40 plus percent. We are seeing opportunities to also create a strong leg of growth for the international market.
So we would continue to look for opportunities there.
Unidentified Participant
Okay, just last one point from myself see this about this Amplitude. We have possibly acquired something else also that BC Medical which is a kind of a distribution kind of setup for those business or and it is supposed to add to or reduce the cost for the amplitude. So can you give some more clarity to that like what is the current profitability of amplitude as per FY26 and with the initiative what is the kind of margin profile that you are thinking about that operation for next year?
Dr. Sharvil P. Patel
So Amplitude is a profitable business upwards of 20 plus percent the equation we did. You know there are. There are agents and distribution distributors that you can acquire. So it’s a normal course of business that one does it and it’s not really I mean in. In parlay terms it’s an M and A but it’s more about you know sales and distribution kind of consolidation that we do and as I said this business over the next few years we will look to improve our profitability and growth.
Unidentified Participant
Yeah. Thank you. Wish you all the best. Thank
Dr. Sharvil P. Patel
You. Thank you.
Operator
Requesting participants to please identify themselves and respect to two questions only. The next question is from Devang Sarati.
Dr. Sharvil P. Patel
Hello,
Unidentified Participant
My question is on Sparoglytinor. Firstly on pvc. Given the trial data is out in our hands is company planning to present or publish the PBC clinical trial data at EASL2026? Yes. And secondly on MASH. According to ClinicalTrial.gov the phase 3 clinical trial was completed in October 2025. Could you please share the expected timeline for publishing, publishing or presenting the top line results? Additionally is company Evaluating any out licensing or co development opportunity with large pharmaceutical company for Saroglitis are in in the US mesh market.
Dr. Sharvil P. Patel
Currently we have in the India Large Phase 4 trial with the 52 week follow up for Fibrosis is continuing with its recruitment and maybe in the next couple of quarters we will close on the recruitment and then as we get data we will obviously publish the data on that. With respect to us on pbc the company has decided to launch the product on its own and so we are preparing for a commercialization strategy in U.S. Post a favorable approval in the U.S. We would look to see how do we co partner or license for Europe and other countries.
Unidentified Participant
And sir thirdly when to expect DESU to stat launch in China. What is company revenue expectation from this product from Chinese market
Dr. Sharvil P. Patel
We will hope to see launch in second quarter of the FY27 in China as as we get more information on the commercial launch and readiness with the partner we can talk about it as we get more information.
Unidentified Participant
And lastly any progress on specialty acquisition for synergizing Saharu launch?
Dr. Sharvil P. Patel
No.
Unidentified Participant
Thank
Operator
You. Thank you. The next question is from Kunal Damage.
Unidentified Participant
I thank you for the opportunity. Again just one on the debt side we are already at more around 4500 crore debt and with the buyback and assertio acquisition we would be almost close to around 7,000 crore net debt. You know I’m not consider the cash generation in FY27 but so what is our plan from here? Do we deleverage from here or are we comfortable at the this kind of debt level which would be more like slightly less than one time net debt to ebitda? Yeah would be. I would like to hear your thoughts.
Dr. Sharvil P. Patel
So we are comfortable around 1 times net debt to EBITDA. So right now on an ongoing basis so we don’t see that as major concern. We continue to look for bolt on acquisition opportunities for our specialty 555B2 franchise. So that’s what we’ll continue to look at. And so yeah from that point of view we are currently comfortable with our current financial metrics
Unidentified Participant
And this Bolt one would be on the same strategy of orphan rare disease. Right? Is that the way to understand? Yes. Okay. And lastly we know on the working capital side that has also kind of inched up quite a bit from quarter one of FY26 through quarter four. So where do we see that? Do we see you know working capital coming back to the older levels?
Dr. Sharvil P. Patel
I think on the overall receivables as well I think we are very healthy and probably amongst the best in class when it comes to working capital management in terms of number of days. So I don’t see that being a major challenge. We continue to always look at ways of improving our health both on receivables and on inventory. So we are comfortable where we are. And obviously with acquisitions you would have additional capital that would have got added. But on the overall health parameters, we are probably on the top in terms of health and industry.
Unidentified Participant
Sure. And lastly, on the current geopolitical environment and its impact on the supply chain, what kind of disruption are we witnessing? You know, from the, let’s say fuel availability to container availability, API prices or raw material prices. And how has that been factored into our FY27 outlook along with the currency benefit, which I believe would be also good positive driver. But on the, on the adverse side, the other factor, what are we seeing there and how is it factored into our guidance?
Dr. Sharvil P. Patel
So it’s very difficult to predict in the next three months and six months. But we are, you know, every day obviously solving for challenges or opportunities that we see. Obviously costs do go up on both freight, on times logistics as well as on other things which we have to manage through a better sourcing and better rationalization and cost optimization. But we are sort of taking it as it comes. As we see new challenges, we’re trying to respond to them and I think the teams are quite efficient to make sure that they continue to improve on that.
Wherever we see opportunity to improve our, you know, margins, we look at that and that’s what we continuously work towards, cost efficiencies. But it’s very difficult to predict what will happen in the next three to six months. So we are taking it as it comes.
Unidentified Participant
But, but at this point the, the rupee depreciation, would you say rupee depreciation is enough to cover the disruption in terms of increased cost line it.
Dr. Sharvil P. Patel
Yeah. We have a good export base. So obviously rupee depreciation gives us a good cash flow. Cash,
Unidentified Participant
Sure. Thank you. And all the best.
Dr. Sharvil P. Patel
Thank you.
Operator
The next question is from Amish Ti.
Unidentified Participant
Hi. My first question is regarding your domestic business. We Observe that Encore IPM growth is also very strong. In fiscal 26. The volume growth was pretty strong. Fiscal 25 was very muted. And also the pricing growth in both the years is also very strong. Can you just explain what happened in 26 versus 25 in which this happened? And did you experience the same phenomena in your encore division as well?
Dr. Sharvil P. Patel
So I think the IPM doesn’t truly capture the full business specific to oncology. Ipsos is probably a better data source to look at. I would say the growth has been there on in the oncology market which with both with more government schemes getting implemented, executed and used and as well as obviously we have seen a higher incidence of cancers in the last growth on that. So we are seeing a good momentum on that for Azidas. Obviously we have captured a strong share on our launches. Pertuzumab, Nivolumab, some of the oral oncology drugs where we were first to market.
So all of that has led to obviously a very strong patient. You know, we have been able to serve a significant number of patients doing so and with the strong medical support and patient support programs that we are running, we are seeing a very strong, you know, traction on, on the brands which has led to a better growth. And now we are the largest Indian oncology player in the market.
Unidentified Participant
Right. The second question I had was the trade generic proposition to your Indian formulation business. How do you see that as a. Either a long term opportunity or long term threat? Like if you could just explain how are they taking market share within your line of businesses?
Dr. Sharvil P. Patel
I would say it’s neutral to us and our own trade generics is a very small part of our business. So it’s more of a cash cow.
Unidentified Participant
Okay, but do you see the others trade generic taking away share over time because the government pushes towards that. I don’t know how the customer acceptance or the any other factors which would limit this market share erosion over long term.
Dr. Sharvil P. Patel
So it does always. Yes, it is a channel and we have to look at the channel, how it, how it progresses. We do look at that. But I think with our innovation pipeline differentiation that we have and a core focus on key brands, I think we can sort of continue to sort of do better than market from our perspective.
Unidentified Participant
Okay, just to capture on the first point, the. Is the pricing growth also strong in encore line of business or other chronic line of business compared to overall Indian formulation business? You have.
Dr. Sharvil P. Patel
I’m sorry, could you repeat the question?
Unidentified Participant
The pricing growth, the year over year pricing gains you see in your Indian market generally
Dr. Sharvil P. Patel
Deflates prices, goes down, not doesn’t go up.
Unidentified Participant
Okay. Okay, great. Thank you. It’s
Dr. Sharvil P. Patel
A faster one more than value their growth.
Unidentified Participant
Okay, thank you,
Operator
Thank you, thank you very much to the management team, ladies and gentlemen. I think
Dr. Sharvil P. Patel
If there are people in qic you can still take a few more questions. Thanks.
Operator
Okay, The next question is from Sayan Mukherji.
Unidentified Participant
Yeah, thanks for the follow two specific question. Dr. Sherville, if you can answer One is, you know, the bio similar business size today in India primarily. How large is that? If you can share that. And the second one I was wondering if you can talk about out of the 1.2 billion dollar US revenues if you add all the specialty rare disease plus 505B2, how large is the portfolio currently?
Dr. Sharvil P. Patel
So as I said on the specialty still in early stages. So it’s not meaningfully very large. We see that scaling up over the next three years on the oncology, it’s obviously become a very large integral part of our business. You know, it’s crossed 800 plus crores.
Unidentified Participant
Okay, okay, thank you. That’s.
Operator
Thank you. The next question is from Harith Ahmed.
Unidentified Participant
Thanks for the opportunity again. So just following up on the previous question on the working capital increase this year. So when I look at the operating cash flows for FY26, there’s a sharp decline and it’s around 2000 odd crores. It’s a lower number compared to our EBITDA for the year being around 7000 crores. So are there any one offs? I understand there’s a Mirabe ground settlement related payout, but anything else that can explain this relatively lower operating cash flow for the year? So this.
Dr. Sharvil P. Patel
No. So I think obviously one is a settlement and the, we had CapEx. No,
Unidentified Participant
The, the operating cash flow. I think if you really look at it from that perspective, I think whatever the acquisitions that we have done to that extent, whatever the incremental working capital which has happened, it is also impacting us in terms of operational, operational cash flow. So the acquisition related working capital changes will have the impact on the operational cash flow. Okay, okay. And last one, with your permission, you know, on international markets, I mean through the year we’ve seen very strong growth.
In FY26 it’s around 40%. So I think you had talked about this in the last call as well. But just trying to get some more color on what exactly is driving this 40% growth. We haven’t seen such a strong growth historically for these segments. So. And then if you can also guide us on what to expect for the segment going forward.
Dr. Sharvil P. Patel
I think it’s actually has been an all around growth across regions. So it’s not a one one off region. So I think we’re very happy with how most of the clusters are growing. You know Europe, which was obviously not doing so well for us a couple of years ago, in the last two years has also got a good trajectory. I think our new countries that we have launched have scaled up faster than we Expected and and done meaningfully well for us. And I think all of that is led by the portfolio that they’ve been able to launch in these markets.
So I would say again a good execution branded focus Keith Therapy focus and also the aided by a very strong pipeline is has led to this growth which we believe will continue in the coming years.
Unidentified Participant
Got it sir. Thank you.
Operator
Thank you. The next question is from Nitin Agarwa
Unidentified Participant
For taking my question sir on the US when you look through the next year guidance should we expect like a pickup more in the second half of the year? This is going to be a well sort of balanced growth laid out numbers through the year.
Dr. Sharvil P. Patel
So obviously product specific we would see some traction later part of the year but we would still see you know the. We will not see any major changes in this next two quarters.
Unidentified Participant
And is there any part of the portfolio right now that you’ve sort of put 320 odd that we did in this quarter which is probably subject to some faster erosion than the average in general or there is this is all now at 320 odd million dollars which is going to just go off will keep growing as a in a typical generic manner.
Dr. Sharvil P. Patel
So we are around that 300 plus to 310 range we had. As I said maybe you’ll have Mira competition which we have factored in. So we would see some erosion from the current base. So that’s what we are expecting.
Unidentified Participant
And lastly you know if you were to look at the 505 B2s that you’ve done for this year and some of the other specialty launches, how what proportion of the 1300 million for the 1.3 billion you’ve done for the year would be on that portfolio.
Dr. Sharvil P. Patel
So as I said it’s still very small the specialty business so it’ll probably require at least this year we would see some scale up. So from FY28 you would see the scale up on the specialty business. So we are not calling it out separately because
Unidentified Participant
It’s not very large right
Dr. Sharvil P. Patel
Now.
Unidentified Participant
Thank you so much.
Operator
Thank you. The next question is from Taran. I think he dropped out of the call. Shall we close? Close the call sir?
Dr. Sharvil P. Patel
Yeah. Thank you.
Operator
Thank you. Thank you very much
Ganesh N. Nayak
And look forward to interacting with you during the next quarter results. Have a good night.
Operator
Ladies and gentlemen, on behalf of Zidus Life Sciences, that concludes today’s conference. Thank you for joining us and you may now disconnect your line and exit the webinar.