Zydus completes Sterling Biotech API business acquisition in 2026

Zydus Lifesciences Limited completed its acquisition of Sterling Biotech Limited’s active pharmaceutical ingredients, or API, business on November 2, 2026, after consolidating Assertio Holdings, Inc. from June 16, 2026. The Sterling transaction closed after the September 30, 2026 reporting date, while Zydus reported half-year revenue from operations of Rs 15,926.6 crore.

When did Zydus complete the Sterling API business acquisition?

Zydus completed the acquisition of Sterling Biotech Limited’s API Business on November 2, 2026. The filing states that the transaction closed after completion of conditions precedent and closing-date adjustments specified in the Business Transfer Agreement between Zydus and Sterling Biotech Limited, dated September 17, 2024.

The disclosure does not state the consideration paid for Sterling Biotech Limited’s API Business, the transferred assets, or the business’s revenue and earnings. It also does not provide a purchase price allocation, or PPA, which is the accounting exercise that assigns an acquisition price among identifiable assets, liabilities and goodwill.

The November 2, 2026 completion occurred after the consolidated balance-sheet date of September 30, 2026. Consequently, the reported half-year revenue of Rs 15,926.6 crore and net profit of Rs 1,885.9 crore for the half year ended September 30, 2026 do not include a disclosed post-closing contribution from the Sterling API Business.

Zydus reported pharmaceuticals segment revenue of Rs 12,856.3 crore for the half year ended September 30, 2026, compared with Rs 11,035.4 crore a year earlier. However, the filing does not separately identify the API Business within pharmaceuticals or set out an integration plan, operating target or expected cost saving for the acquired operation.

How does Assertio fit into Zydus’s completed acquisitions?

Zydus acquired Assertio Holdings, Inc. through a cash tender offer that was completed on June 16, 2026, followed by the merger of its acquisition subsidiary, Zara Merger Sub Inc., into Assertio. Assertio then became a wholly owned subsidiary of the group, and Zydus included its operations in consolidated results from June 16, 2026.

The filing says the Assertio PPA remains provisional under Indian Accounting Standard 103, or Ind AS 103, which governs business combinations. Zydus said it will finalise the figures within the measurement period allowed by Ind AS 103, meaning accounting values for acquired assets, liabilities and goodwill may be revised.

Zydus recorded a Rs 105.8 crore exceptional-item provision for severance compensation linked to rightsizing Assertio operations in the half year ended September 30, 2026. The provision included Rs 3.3 crore in the quarter ended September 30, 2026 and Rs 109.1 crore in the quarter ended June 30, 2026.

The two completed transactions used different structures and closed at different points in 2026. Assertio became a subsidiary during the half year through a tender offer and merger, whereas Sterling Biotech Limited’s API Business transferred under the September 2024 Business Transfer Agreement after the September 2026 reporting date. Zydus does not disclose a common financial target or integration timetable for the transactions.

What acquisition accounting has Zydus completed and what remains provisional?

Zydus completed the PPA for Amplitude Surgical SA during the quarter ended September 30, 2026, while the Assertio and Agenus Facilities PPAs remained provisional. Amplitude became a wholly owned subsidiary after Zydus MedTech (France) SAS acquired 85.6% of its share capital on July 29, 2025 and acquired the remaining share capital by October 24, 2025.

The final Amplitude PPA changed the allocation between identifiable net assets and goodwill as at March 31, 2026, without changing purchase consideration. Zydus updated prior-period figures under Ind AS 103 following completion of that PPA.

The finalisation increased the fair value of identifiable net assets by Rs 10.5 crore and reduced goodwill by Rs 10.5 crore. Updated consolidated net profit for the quarter ended June 30, 2026 was Rs 960.4 crore, compared with the previously reported Rs 939.8 crore, while the filing identifies these revisions as relating to Amplitude rather than Assertio or the Sterling API Business.

Zydus also acquired two United States biologics manufacturing facilities from Agenus, with the transaction completed on January 15, 2026. Their results were included from that date with provisional PPA figures, so both the Assertio and Agenus Facilities accounting remain subject to finalisation within the relevant Ind AS 103 measurement periods.

What do Zydus’s half-year financial results show around the acquisitions?

Zydus reported consolidated revenue from operations of Rs 15,926.6 crore for the half year ended September 30, 2026, up from Rs 12,696.9 crore in the corresponding 2025 period. Pharmaceuticals revenue rose by Rs 1,820.9 crore to Rs 12,856.3 crore, consumer products revenue increased by Rs 1,055.2 crore to Rs 2,561.6 crore, and medical technologies revenue rose by Rs 353.6 crore to Rs 508.7 crore.

Consolidated net profit was Rs 1,885.9 crore for the 2026 half year, compared with Rs 2,727.7 crore for the 2025 half year. Depreciation and amortisation expense rose to Rs 1,134.5 crore from Rs 538.4 crore, while finance costs increased to Rs 343 crore from Rs 186 crore; the filing does not attribute these group-wide movements to a particular acquisition.

Total consolidated assets increased to Rs 55,606.9 crore at September 30, 2026 from Rs 52,508.6 crore at March 31, 2026. Goodwill rose to Rs 7,817.9 crore from Rs 7,531 crore, and other intangible assets increased to Rs 8,004.1 crore from Rs 7,228.1 crore over the same period.

Cash-flow disclosures show Rs 1,563 crore of payments for acquisition of businesses in the half year ended September 30, 2026, compared with Rs 5,467.4 crore in the corresponding prior-year half year. Net cash from operating activities was Rs 3,162.3 crore, up from Rs 1,220.7 crore, while net cash used in investing activities was Rs 4,129.4 crore.

Conclusion

Zydus’s disclosures show a sequence of completed acquisitions across 2025 and 2026, with Assertio included in consolidated operations from June 16, 2026 and Sterling Biotech Limited’s API Business closing on November 2, 2026. The reporting period to September 30, 2026 showed revenue growth of Rs 3,229.7 crore year on year, while net profit was lower by Rs 841.8 crore.

The next disclosed accounting milestone is finalisation of provisional PPAs for Assertio and the Agenus Facilities within the Ind AS 103 measurement period. Future filings may also show the first reported operating contribution, purchase accounting and integration details for the Sterling API Business, which closed after the September 30, 2026 balance-sheet date.