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Informist, Thursday, Nov. 6, 2025

By Narayana Krishna

HYDERABAD – Zydus Lifesciences Ltd. Thursday reported a consolidated net profit of INR 12.59 billion for September, up 38% on year. The company's consolidated revenue for the quarter was up by nearly 17% on year to INR 61.2 billion. The company beat the analysts' estimates on both net profit and revenue. The net profit growth for the reporting quarter is the highest in the last six quarters. Analysts had estimated Zydus Life Jul-Sept net profit at INR 10.7 billion on a revenue of INR 59.1 billion.

Zydus Life reported a foreign exchange gain of INR 4.14 billion against INR 454 million a year ago. Excluding this gain, the company's net profit for the quarter is at INR 8.44 billion, below the estimates. Robust growth in consumer wellness and US formulations followed by other global markets were the key contributors to Zydus Life's September quarter performance. The core India formulations business reported 8.4% on year sales growth at INR 15.9 billion for the September quarter. Consumer wellness business' revenue grew nearly 31% on year growth to INR 6.4 billion.  

The company consolidated pharmaceuticals sales for the quarter were at INR 54.7 bilion, up 15% on year and active pharmaceutical ingredients sales rose 23% on year to INR 1.5 billion.

The company reported its September quarter US formulations sales at INR 27.4 billion, up 13.5% on year. Analysts had expected Zydus Life to report healthy sales numbers in the US from the generic Myrbetriq, which the company is selling at a risk despite losing the initial phase of the patent battle with innovator Astellas Pharma. The drug has an estimated annual sales of nearly $1.4 billion in the US. In constant currency terms, the company's US formulation sales for the September quarter were at $313 million.

As on Sept. 30, the US market accounted for nearly 45% of the company's consolidated sales, and India formulations contributed nearly 26%. The consumer wellness segment accounted for 11% and international formulations 13%. The active pharmaceutical ingredients business contributed 2% to the company's overall sales, while arm Medtech and others the remaining share. 

In the US, the company launched 7 new products during the September quarter and filed six new abbreviated new drug applications, besides getting approvals for four products. In the other international formulations business, the growth was mainly led by strong demand in emerging markets along with Europe, the company said. The growth in other international markets was also broad-based, led by strong demand for various products. The company's other international markets revenue for the September quarter was up by 39% on year to INR 7.5 billion.

Zydus Life said in India, the company's branded formulations business has grown faster than the market with 9% on year growth, driven by sustained traction in innovative products and major brands. The company outpaced the industry growth in the Indian generics business in key therapies such as cardiology, gynaecology, and super-speciality areas of oncology. The share of the chronic therapies portfolio improved by 500 basis points to 44.5% in the overall India sales over the last three years, Zydus Life said. In the consumer wellness business, the company is witnessing the fastest growth in e-commerce and other digital channels, Zydus said.

Zydus Life's earnings before interest, tax, depreciation, and amortisation margin for the September quarter improved by 500 basis points to 32.9% from 27.9% a year ago, led by high-margin products in the US. The company's EBITDA for the quarter was up by nearly 38% on year to INR 20.2 billion.

The total expenditure for the quarter was up by nearly 12% on year to INR 45.1 billion. The company reported INR 342 million of exceptional expenses related to impairment charges of the Brazil business and acquisition costs.

The net debt as of Sept. 30 was INR 22.79 billion and the capex spending for the quarter was at INR 4.91 billion. Zydus Life board today approved a plan to raise up to INR 50 billion via a secondary equity issue.

For Apr-Sept, the company reported a consolidated net profit of INR 27.25 billion, up around 17% on year and the revenue rose 11% on year to INR 126.97 billion.

Zydus Life shares ended at INR 936.70 on the National Stock Exchange, down 3.6% from previous close.  End

US$1 = INR 88.61

Edited by Vandana Hingorani

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