Analyst Concall
Zydus Life on track to achieve FY26 revenue, margin targets
This story was originally published at 18:30 IST on 6 November 2025
Register to read our real-time news.Informist, Thursday, Nov. 6, 2025
Please click here to read all liners published on this story
--Zydus Life: On track to achieve guided revenue, margin growth in FY26
--Zydus Life: US business positioned for sustained long-term growth
--CONTEXT: Comments by Zydus Life mgmt in post-earnings analyst concall
--Zydus Lifesciences: Focus on repayment of debt
--Zydus Life: Have seen good traction in Myrbetriq sales in US
--Zydus Life: Revlimid sales not significant in Q2
--Zydus Life: Fund raise of up to INR 50 bln also to refinance existing debt
--Zydus Life: To work on cutting cost at acquired French co Amplitude Surgical
--Zydus Life: Vaccines to be a meaningful business for co in next 2 years
--Zydus Life: To file new drug application for Saroglitazar with US FDA in Q4
--Zydus Life: To launch generic Copaxone in US very soon
--Zydus Life: To see more than 25 product launches in Oct-Mar
--Zydus Life: FY26 operating margin guidance intact at 26%
By Narayana Krishna and Arya S. Biju
HYDERABAD/MUMBAI - Zydus Lifesciences Ltd. is confident of achieving its revenue and margin guidance for the current financial year ending March, the company management said in a post-earnings analyst conference call on Thursday. The company said the FY26 margin guidance remains intact, though it was above the target for Apr-Sept.
Zydus Lifesciences projected double-digit top-line growth overall and single-digit growth in the US market. The company has guided for an earnings before interest, tax, depreciation, and amortisation margin of around 26% for FY26. The company's EBITDA 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.
Zydus Life Thursday reported a consolidated net profit of INR 12.59 billion for the September quarter, up 38% on year. The company's revenue for the quarter rose nearly 17% on year to INR 61.23 billion. The company's net profit and revenue exceeded analysts' estimates during the quarter. The net profit growth for the quarter was the highest in the last six quarters. Analysts had estimated Zydus Life's 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, as against INR 454 million a year ago. Excluding this gain, the company's net profit for the quarter was INR 8.44 billion, below the Street estimates.
The company said it is expecting to launch over 25 new products in Oct-Mar. It had earlier guided for 30 new product launches for the full FY26. The company said its US business is well-positioned to drive sustained long-term growth, helped by new, innovative, and speciality products.
Zydus Life is preparing to launch its generic version of Copaxone, a multiple sclerosis drug, in the US very soon. The company received the final approval for the drug in the US in May. The company said it is on track to file the Abbreviated New Drug Application with the US Food and Drug Administration for its liver and diabetic treatment drug Saroglitazar in Jan-Mar. The drug is developed by the company in-house and is expected to receive approval within 6-12 months. The company said the contribution from the cancer drug generic Revlimid was not significant in the September quarter and it may go down further by March. The company said generic Myrbetriq sales have seen good traction in the September quarter.
Zydus Life's board Thursday approved raising up to INR 50 billion through debt or equity. The management said the key objective of the proposed fundraising plan was to de-leverage the balance sheet by reducing and refinancing some of the existing debt. As of Sept. 30, the company's net debt was INR 22.79 billion. Along with debt reduction, there are other strategic moves that will enhance the company's financial position, strengthen its capital structure, and better position it for future growth, the company's management said.
Zydus Life said it is also exploring potential acquisition opportunities, including innovative assets in the US and Europe, but did not mention any specific deal size it is targeting.
The company said Zydus Life is a strong player in India's vaccine market. The company currently has flu and rabies, which are providing sizeable revenues as of today, the management said. With some global tenders and new vaccine products, this segment will emerge as one of the company's meaningful revenue contributors in the next two years, the management said.
On Thursday, Zydus Life shares ended at INR 936.70 on the National Stock Exchange, down 3.6% from its previous close. End
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
