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Zydus Lifesciences Limited Earnings Presentation: Q2 FY27 4th November 2026
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Disclaimer and Safe Harbor Statement • THIS PRESENTATION (PRESENTATION) IS NOT AN OFFER TO SELL ANY SECURITIES OR A SOLICITATION TO BUY ANY SECURITIES OF ZYDUS LIFESCIENCES LIMITED OR ITS SUBSIDIARIES OR JOINT VENTURES (TOGETHER, THE “COMPANY”). The material that follows is a Presentation of general background information about the Company’s activities as at the date of the Presentation or as otherwise indicated. It is information given in summary form and does not purport to be complete and it cannot be guaranteed that such information is true and accurate. This Presentation has been prepared by and is the sole responsibility of the Company. By accessing this Presentation, you are agreeing to be bound by the trading restrictions. It is for general information purposes only and should not be considered as a recommendation that any investor should subscribe / purchase the Company shares. This Presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “projects”, “expects”, “intends”, “may”, “will”, “seeks” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, aims, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Presentation and include statements regarding the Company’s intentions, beliefs or current expectations concerning, amongst other things, its results or operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates. • By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performance including those relating to general business plans and strategy of the Company, its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory environment. No representation, warranty or undertaking, express or implied, is made or assurance given that such statements, views, projections or forecasts, if any, are correct or that the objectives of the Company will be achieved. There are some important factors that could cause material differences to Company’s actual results. These include (i) our ability to successfully implement our strategy (ii) our growth and expansion plans (iii) changes in regulatory norms applicable to the Company (iv) technological changes (v) investment income (vi) cash flow projections etc. • The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this Presentation, unless otherwise specified is only current as of the date of this Presentation. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this Presentation, the information contained herein is based on management information and estimates. This document is just a Presentation and is not intended to be a “prospectus” or “offer document” or a “private placement offer letter” (as defined or referred to, as the case may be, under the Companies Act, 2013). It is clarified that this Presentation is not intended to be a document offering for subscription or sale of any securities or inviting offers from the Indian public (including any section thereof) or from persons residing in any other jurisdiction including the United States for the subscription to or sale of any securities including the Company’s equity shares. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of the Company’s securities may be offered or sold in the United States without registration under the U.S. Securities Act of 1933, as amended, except pursuant to an exemption from registration there from. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or delivered or transmitted in any manner to any person other than its intended recipient, and should not be reproduced in any manner whatsoever. 2
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India Formulations 24% North America Formulations 43% API & Others 3% IM Formulations 13% MedTech 3% Consumer Wellness 14% ❑ USFDA inspections at SEZ II, Ahmedabad and Moraiya formulations facilities concluded with one and five observations, respectively. ❑ Post inspection at Moraiya site, received approval for a transdermal product on October 21, 2026. ❑ Total revenues grew 29% YoY. ❑ Within Pharmaceutical business, ➢ India branded formulations sustained market outperformance with 19% YoY growth during the quarter. ➢ North America formulations business growth was driven by sustained volume expansion and scale-up of specialty business. ➢ International Markets business sustained its growth trajectory with growth across markets supported by strong demand and focused execution. ❑ Consumer Wellness delivered strong growth in India and sustained dominant market share in key brands; International business recorded a healthy like-to-like growth. ❑ EBITDA margin stood at 24.0%. ❑ Capex (organic) for the quarter: Rs. 4,655 mn. ❑ Net Debt: Rs. 51,998 mn (as at 30-Sep’26) Q2 FY27: At a Glance Highlights of Q2 FY27 Rs. 79,096 mn 29% YoY Revenues from Operations Rs. 6,573 mn 8.3% of revenues R&D Rs. 18,945 mn 24.0% of revenues 6.0% YoY EBITDA & Margin % Rs. 9,255 mn 26.6% YoY Net Profit Business-wise Sales Break-up (Rs. mn) and YoY Growth 3 Regulatory Updates Total 77,544 ▲28% Pharma (83%) ▲18% ▲22% ▲21%▲30% ▲33% ▲47% ▲76%
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20,158 18,164 25,544 19,294 18,945 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 4,820 6,074 6,982 6,424 6,573 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 44,327 50,282 56,107 57,772 57,552 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Key Financial Metrics (1/2) Total Revenues (Rs. mn) EBITDA (Rs. mn) and EBITDA Margin % Total R&D (Rs. mn) and % to Revenues Gross Profit (Rs. mn) and Gross Margin % 4 7.9 % 8.8% 9.2% 8.0% 8.3% 32.9% 26.5% 33.7% 24.1% 24.0% 72.4% 73.2% 72.1 % 72.8% 74.0% 61,232 68,645 75,870 80,170 79,096 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27
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72,513 75,938 81,987 86,143 83,052 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Key Financial Metrics (2/2) Reported PAT (Rs. mn) 5 Net Debt to EBITDA (x) Organic Capex (Rs. mn) Net Working Capital* (Rs. mn) *Net working capital includes Inventory, Trade receivables and Trade payables. 12,609 10,484 13,185 9,604 9,255 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 4,911 4,637 3,577 5,875 4,655 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 0.28 0.34 0.49 0.68 0.62 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27
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15,926 17,094 17,528 18,158 18,844 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 India Formulations Sales (Rs. mn) Cardio-diabeto 18% Respi 13% Gynaec 5% Onco 10% Nephro 9% GI 9% Derma 5% Pain 7% AI 12% VMN 4% Others 8% 24% India Formulations business Outperformed IPM across super specialty, chronic and acute segments Highlights for the quarter *Source: AWACS MAT September 2026 data 18.3% Q2 FY27 Gr. YoY 3.8%QoQ Brand building - a key growth driver 1000+ 500 to 1000 250 to 500 # of Mother Brands Brand Value (Rs. Mn)* 20 29 28 Therapy-wise Break-up* Q2 FY27 Revenue Contribution ▪ Branded business grew faster than the market with 19% YoY growth. ▪ Consistently outperformed IPM growth over the last 3 financial years and during the first half of current fiscal. ▪ Secondary sales growth was 20% y-o-y with volume and new products accounting for around two-third of the total growth. ▪ Gained share in key therapies of Cardiology, Diabetology, Respiratory, Dermatology, Gastro- Intestinal, Anti-infectives and in super specialty areas of Oncology and Nephrology. ▪ Ranking improved in key therapies of Cardiology, Diabetology, Gastro-Intestinal and Anti-infective therapies. ▪ On the Super Specialty front, continued to retain leadership position in Oncology therapy. ▪ Share of Chronic and sub-chronic portfolio has gone up consistently over the years and stood at 56.9%*, an improvement of 450 bps over the last 4 years. Growth drivers: • Chronic portfolio • Innovation and differentiated portfolio
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27,437 28,043 29,523 30,979 33,145 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 North America Formulations Sales (Rs. mn) 516 455 Filings Approvals ANDA filings and approvals - Cumulative 9 22 Filings Approvals ANDA filings and approvals - H1 FY27 4 12 Filings Approvals ANDA filings and approvals - Q2 FY27 North America Formulations business Resilient performance on account of base business and branded portfolio Continued investment to build resilient product portfolio 7 20.8% Q2 FY27 Gr. YoY 7.0%QoQ Highlights for the quarter $ 313 mn $ 314 mn $ 323 mn Q2 FY27 Revenue Contribution $ 327 mn $ 347 mn US Generics ▪ Base business continued to gain market share driven by sustained volume expansion and new launches. ▪ Launched 5 new products during the quarter. ▪ Launched the first generic version of Riociguat tablets in October 2026. ▪ Filed 4 ANDAs and received approval for 12 ANDAs (incl. 2 tentative approvals). US Specialty ▪ Delivered strong sequential growth, supported by Rolvedon® and continued momentum in the 505(b)(2) portfolio. ^ includes 2 tentative approvals in Q2 FY27, 7 in H1 FY27 and 31 on a cumulative basis. 43% Growth drivers: • Volume expansion • New launches • Branded and specialty portfolio ^ ^ ^
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7,513 7,881 8,041 9,735 10,009 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 IM Formulations Sales (Rs. mn) International Markets Formulations business Strong growth on the back of resilient demand across markets 8 33.2% Q2 FY27 Gr. YoY 2.8%QoQ Highlights for the quarter Q2 FY27 Revenue Contribution 13% ▪ Growth was broad based in both Emerging markets (EM) and Europe driven by strong demand and focused execution. ▪ In EM, adopted a focused, therapy led approach, tailoring the offerings to meet the needs of specific markets and in turn, built a more agile, market responsive portfolio. ▪ In Europe, focus remains on broadening the portfolio and enhance the market coverage. Growth drivers: • Focused therapy approach in EM • Portfolio expansion and penetration in Europe • Focused execution
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6,374 9,578 14,633 14,292 11,223 Q2 FY26 Q3 FY26 Q4 FY26 Q1 FY27 Q2 FY27 Consumer Wellness Sales (Rs. mn) Consumer Wellness ▪ Domestic business grew 29% y-o-y supported by sustained positive momentum across categories driven by steady urban recovery and improving rural demand. ▪ Skin & hair care portfolio and food & nutrition portfolio registered 37% and 25% y-o-y growth respectively. ▪ Organized channel saliency reached 38% (Modern Trade: 15% and E-commerce: 23%) in H1FY27. ▪ International business, including CCL business, delivered 12% y-o-y growth on a like-to-like basis. 9 76.1% Q2 FY27 Gr. YoY -21.5%QoQ Strengthening presence across markets Key brands in India continued to hold dominant market share Brand Name Market Share# 60.0% 32.8% 96.0% 8.4% 50.2% 75.6% 3.9% , ## Mkt. Rank as per Company Estimates, #Source: Nielsen and IQVIA MAT Sep 2026 report, * Facial cleansing segment includes Face wash, Scrub and Peel -off Facial Cleansing * Scrub Peel Off Highlights for the quarter NA NA NA NA NA Fat spread Dairy Nutrition & Protein Bar Protein Cookies & Chips Other Nutrition Products Market Rank 1 1 1 4 1 1 4 1## NA 1 ## NA 1 ## Q2 FY27 Revenue Contribution 14% Growth drivers: • Product Innovation • Disciplined execution • Quick commerce
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Innovation and Other Updates 10 Innovation Updates NCE Research • Presented new analysis from Phase III clinical trial of Saroglitazar Magnesium in Primary Biliary Cholangitis (PBC) indication at the American College of Gastroenterology (ACG) 2026 Annual Meeting. • Successfully completed EVIDENCES-X global Phase II(b) clinical trial of Saroglitazar Magnesium in Metabolic Dysfunction-Associated Steatohepatitis (MASH) indication. Biotech R&D • Received regulatory approval to initiate Phase III clinical trials for one monoclonal antibody in India. 505(b)(2) and Specialty • The USFDA accepted for review the biologics license application (BLA) of Pembrolizumab biosimilar FYB206 developed by the partner Formycon AG. This is the first publicly announced Keytruda® biosimilar filing accepted for review in the US. Other Updates • Sentynl Therapeutics entered into a licensing agreement with Mereo BioPharma for Alvelestat, a late-stage asset being prepared for Phase III development in Alpha-1 Antitrypsin Deficiency-associated Lung Disease (AATD-LD).
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Zydus at a Glance 1st Approved product for MASH in India - (Bilypsa® - Saroglitazar) Biosimilars (pipeline & launched) & 7 novel products (pipeline) 1. In FY26, assuming exchange rate of Rs. 88.33 per USD 2. As on 3rd Nov 2026, exchange rate of Rs. 94.70 per USD 3. IQVIA MAT Sep 2026 TRx 11 10 R&D Centers For NCE, APIs, Generics, Vaccines Biosimilars, Wellness and Med-tech products 1st 1st Biosimilar of Nivolumab in the world - TishthaTM Launched in India 1st OSD formulation for anemia associated with CKD – OxemiaTM (Desidustat) Biosimilars (pipeline & launched) & 7 novel products (pipeline) 7 ~57% Revenues from Branded Business (Pharmaceutical, Wellness and Med -Tech) Biosimilars (pipeline & launched) & 7 novel products (pipeline) 1st 3rd Largest generic Co. in US in terms of prescription3 Among Top 3 In ~60% of product families marketed in US4 Brands among Top 300 in India5 ~30 K Zydans globally incl. >1500 scientists (R&D) Global Revenues1 $13.1 bn Market Capitalization2 44 Mfg. sites having capabilities across dosage forms 4. IQVIA MAT Sep 2026 TRx 5. As per AWACS MAT Sep 2026 +$3 bn
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ESG Updates . 2024 2025 2026 65 70 71 Higher the Better 59 61 66 2024 2025 2026 Higher the Better • Attained an ESG Rating of 71/100 by NSE Sustainability Ratings & Analytics • Progressed to the ‘Leader’ category i.e. Top 10% percentile band from the ‘Aspiring’ category in the previous year, demonstrating best-in-class ESG practices • Ranked among Top 2* in Indian Pharma sector • Improved core ESG rating to 68/100 from 66/100 in the previous year • Achieved CRISIL ESG Rating of 66/100, placing the Company in the ‘Strong’ category • Ranked among Top 4 in Indian Pharma sector • Improved core ESG rating to 70/100 from 64/100 in the previous year *Based on the results released on 15th October 2026.
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Consolidated Financial Performance (reported) * Excludes Research related expenses 13 Rs. mn Q2 FY27 Q2 FY26 YoY gr. Q1 FY27 QoQ gr. H1 FY27 H1 FY26 YoY gr. Total Income from Ops. 79,096 61,232 29.2% 80,170 -1.3% 1,59,266 1,26,969 25.4% Gross Contribution (GC) 57,552 44,327 29.8% 57,772 -0.4% 1,15,324 92,169 25.1% Gross Margin % 72.8% 72.4% 72.1% 72.4% 72.6% Employee benefits expenses * 12,335 9,227 33.7% 12,491 -1.2% 24,826 18,251 36.0% R&D expenses 6,573 4,820 36.4% 6,424 2.3% 12,997 9,676 34.3% HR Cost 1,236 1,115 10.9% 1,191 3.8% 2,427 2,143 13.3% Opex 5,337 3,705 44.0% 5,233 2.0% 10,570 7,533 40.3% Other operating expenses * 21,065 14,263 47.7% 20,132 4.6% 41,197 27,911 47.6% Net [gain]/loss on foreign currency transactions (1,366) (4,141) 67.0% (569) -140.1% (1,935) (4,712) 58.9% EBITDA 18,945 20,158 -6.0% 19,294 -1.8% 38,239 41,043 -6.8% EBITDA Margin % 24.0% 32.9% 24.1% 24.0% 32.3% Other Income 1,299 1,090 19.2% 1,061 22.4% 2,360 2,639 -10.6% Finance cost 1,870 1,013 84.6% 1,560 19.9% 3,430 1,860 84.4% Depreciation and amortization 6,045 3,003 101.3% 5,300 14.1% 11,345 5,384 110.7% Share of profit from JVs 275 52 428.8% 378 653 396 64.9% PBT before exceptional items 12,604 17,284 -27.1% 13,873 -9.1% 26,477 36,834 -28.1% Exceptional Expenses/ (Incomes) (13) 342 -103.8% 182 -107.1% 169 342 -50.6% Profit before Tax 12,617 16,942 -25.5% 13,691 -7.8% 26,308 36,492 -27.9% Tax expenses 3,340 4,533 -26.3% 3,583 -6.8% 6,923 8,873 -22.0% Non-Controlling Interest 22 (200) 111.0% 504 -95.6% 526 342 53.8% Reported Net Profit 9,255 12,609 -26.6% 9,604 -3.6% 18,859 27,277 -30.9%
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Details of Exchange Rate Fluctuations 14 Rs. mn Q2 FY27 Q2 FY26 YoY gr. % H1 FY27 H1 FY26 YoY gr. % On operating transactions (above EBITDA line) a. Included in COGS 93 365 -75% 85 437 -80.5% b. Part of other operating expenses (shown separately) -1,366 -4,141 67% -1,935 -4,712 58.9% Total Exchange Rate Fluctuations ('+' = loss, '-' = gain) -1,273 -3,776 66.3% -1,850 -4,275 56.7%
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Thank you Registered Office: Zydus Corporate Park, Scheme No. 63, Survey No. 536, Khoraj (Gandhinagar), Nr. Vaishnodevi Circle, Sarkhej-Gandhinagar Highway, Ahmedabad – 382 481 Gujarat, India For any queries, please contact Arvind Bothra Arvind.Bothra@zyduslife.com +91-79-48040969 For more information, please visit: www.zyduslife.com www.linkedin.com/company/zyduslife