Zydus Lifesciences Q3 Results: Revenue Jumps 30% to ₹6,864 Crore, Profit at ₹1,111 Crore
Zydus Lifesciences delivered strong revenue growth in the December quarter, driven by US generics, consumer wellness expansion, and international formulations.
Zydus Lifesciences Q3 results show strong top-line growth with improving operating margins, supported by momentum in North America, consumer wellness, and emerging international markets. The company reported double-digit revenue and EBITDA growth, while profit expansion was moderated by exceptional costs during the quarter.
Live Earnings Snapshot
- Revenue: ₹6,864 crore (up 30% YoY)
- EBITDA: ₹1,816 crore (up 31% YoY)
- EBITDA margin: 26.5%
- Adjusted Net Profit: ₹1,111 crore (up ~9% YoY)
- R&D spend: ₹607 crore (8.8% of revenue)
Table of Contents
- Key Highlights
- Financial Performance
- Operational Drivers
- Segment Trends
- Capital-Flow Impact
- Valuation Context
- Risks
- Outlook
Zydus Lifesciences Q3 Results: Key Highlights
- Revenue rose 30% YoY to ₹6,864 crore.
- EBITDA increased 31% YoY to ₹1,816 crore.
- EBITDA margin improved to 26.5%.
- Adjusted net profit rose to ₹1,111 crore.
- R&D spending stood at ₹607 crore, or 8.8% of revenue.
Zydus Lifesciences Q3 Results: Financial Performance
| Metric | Q3 FY26 | Q3 FY25 | YoY Change |
|---|---|---|---|
| Revenue | ₹6,864 crore | ₹5,269 crore | +30% |
| EBITDA | ₹1,816 crore | ₹1,387 crore | +31% |
| EBITDA Margin | 26.5% | 26.3% | +20 bps |
| Adjusted Net Profit | ₹1,111 crore | ₹1,023 crore | +9% |
The company delivered strong revenue growth with stable operating margins. Profit growth was affected by one-time exceptional costs related to labour code liabilities and acquisition expenses.
Zydus Lifesciences Q3 Results: Operational Drivers
Zydus reported broad-based growth across its core pharmaceutical and wellness businesses. The company highlighted strong execution across geographies and continued investments in research, innovation, and acquisitions.
- North America formulations remained the largest contributor.
- Consumer wellness business more than doubled.
- International markets delivered strong double-digit growth.
- R&D investments remained elevated at 8.8% of revenue.
Management noted that disciplined M&A and business development initiatives are translating into tangible growth across key businesses.
Segment Trends
Pharma Business
- Total pharma revenue: ₹5,523 crore, up 18% YoY.
- Accounts for 81% of consolidated revenues.
India Formulations
- Revenue: ₹1,709 crore, up 13% YoY.
- Strong growth in chronic therapies and innovation products.
- Chronic portfolio share reached 45.3%.
North America Formulations
- Revenue: ₹2,804 crore, up 16% YoY.
- 41% of consolidated revenue.
- 4 new product launches and 8 approvals during the quarter.
International Markets
- Revenue: ₹788 crore, up 38% YoY.
- Strong demand across emerging markets and Europe.
Consumer Wellness
- Revenue: ₹958 crore, up 113% YoY.
- Driven by consolidation of Comfort Click business.
MedTech
- Revenue: ₹300 crore during the quarter.
- First full quarter of Amplitude Surgical consolidation.
Capital-Flow Impact
Zydus’ performance reinforces the structural appeal of large Indian pharma companies in global generics and specialty markets.
- North America remains the primary earnings driver.
- Consumer wellness expansion adds a higher-growth segment.
- Specialty and biosimilar pipeline strengthens long-term positioning.
Defensive sectors such as pharmaceuticals typically attract institutional flows during periods of macro uncertainty, especially companies with diversified global revenue streams.
Valuation Context
Pharmaceutical companies are typically valued on:
- US generics pipeline visibility
- Specialty and biosimilar launches
- R&D productivity and approvals
- Margin sustainability
Zydus’ growth across consumer wellness, medtech, and specialty pipelines indicates a gradual shift toward higher-value segments over time.
Risks
- Pricing pressure in the US generics market.
- Regulatory risks from USFDA inspections.
- Execution risks in acquisitions and integrations.
- Currency fluctuations impacting export margins.
Outlook
The company expects continued growth supported by:
- New generic launches and ANDA approvals.
- Expansion of consumer wellness portfolio.
- Specialty and biosimilar pipeline.
- International market growth.
Long-term performance will depend on execution in the US generics business, specialty launches, and margin discipline across new business segments.
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