Zydus Lifesciences Surpasses Expectations with Strong Growth

Zydus Lifesciences Ltd has reported impressive financial results for the September quarter, surpassing analysts’ expectations with significant revenue and profit growth. The Ahmedabad-based pharmaceutical company posted consolidated revenue from operations of ₹ 6,123.2 crore, reflecting a year-on-year increase of 17%. Furthermore, its net profit surged by 38% to reach ₹ 1,258.6 crore, significantly higher than the anticipated figures from a Bloomberg poll, which projected revenue at ₹ 5,953 crore and net profit at ₹ 1,088.9 crore.

Strong Financial Performance

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at ₹ 2,015.8 crore, marking a 38% increase compared to the previous year. The EBITDA margin also improved, expanding 500 basis points to reach 32.9%. This growth trajectory was driven by exceptional performance in both its US and India formulations businesses, alongside sustained momentum in international markets.

“Our strong performance this quarter reaffirms the power of our diversified business model and our execution capabilities across geographies and verticals,” stated Sharvil Patel, Managing Director of Zydus Lifesciences. The company also announced plans to raise ₹ 5,000 crore through various methods, including a qualified institutional placement, rights issue, or preferential allotment, pending shareholder and regulatory approvals. Details on the intended use of the funds were not disclosed.

Segment Growth and Expansion

Zydus Lifesciences’ India formulations business reported an 8% increase in revenue to ₹ 1,593 crore, contributing 26% of total revenues. The branded formulations segment outperformed the market, growing at 9% and achieving gains in key therapy areas such as cardiology, gynecology, and oncology.

In the US market, revenue increased by 14% year-on-year to ₹ 2,743.7 crore, although it experienced a sequential decline of 14%. This segment represented 45% of the company’s consolidated revenue. Analysts from BNP Paribas noted that while revenues were expected to dip sequentially due to lower sales of the blood cancer drug Revlimid, this decline was partially offset by sales from the diabetes medication Sitagliptin.

The international formulations business also showed remarkable growth, with a year-on-year increase of 39% to ₹ 751.3 crore, representing 12% of total revenues. Zydus attributed this success to strong demand across emerging markets and Europe, bolstered by effective execution strategies.

Zydus Lifesciences has been actively expanding into new areas, including wellness and medtech. Recently, it completed the acquisition of UK-based Comfort Click Ltd, marking its first international venture in the wellness sector. Additionally, the company finalized a 100% acquisition of the French medtech firm Amplitude Surgical in October 2025.

Despite the positive financial results, Zydus Lifesciences’ shares declined by 3.80% on the National Stock Exchange, closing at ₹ 934.80 per share, while the Nifty index fell by 0.34%.

Overall, Zydus Lifesciences’ recent performance underscores its robust growth strategy and ability to navigate complex market dynamics, positioning itself for continued success in the pharmaceutical industry.