More Stories

Informist, Tuesday, Feb. 10, 2026

 

--Zydus Life: To commercialise contract developing mfg ops from H2 of FY27 

--Zydus Life: Scale-up of contract developing mfg business 2-3 years away 

--CONTEXT: Comments by Zydus Life management in post-earnings analyst concall 

--Zydus Life: See FY26 R&D expenditure at 7.5-8.0% of revenue 

--Zydus Life: Expect 23%-plus margin Q4 despite no lenalidomide sales 

--Zydus Life: See growth in US business next yr despite no gRevlimid sales 

--Zydus Life: Bullish on Saroglitazar growth going forward 

--Zydus Life: Hope to become largest player for flu products in India ahead 

--Zydus Life: Hope to diversify in US; looking at specialty drugs segment 

--Zydus Life: Eyeing INR 10 billion sales from vaccines porfolio in 3-4 yrs 

--Zydus Life: Co to be part of first wave of GLP-1 pdt launches in India 

 

By Shakshi Jain and Eshitva Prakash

 

NEW DELHI/MUMBAI – With little to no contribution from sales of generic Revilimid drug lenalidomide, Zydus Lifesciences Ltd. expects to clock an operating margin of over 23% in the ongoing quarter, the management said in a post-earnings conference call with analysts Tuesday.

 

"...in quarter four, which would probably see very little...or no sale also on lenalidomide, we would still expect a 23%-plus margin...overall consumer business next quarter (Jan-Mar), which is a bigger quarter, will have lower margins," a top company executive said.

 

For the December quarter, the company reported a consolidated earnings before interest, tax, depreciation, and amortisation margin of 26.5%, against 26.3% a year ago. For the first nine months of 2025-26 (Apr-Mar), the company's EBITDA margin stood at 30.3%, up 80 basis points on year.

 

"on Revlimid...every quarter the trajectory is on a downward trend and even in this quarter gone by, it's a very small part of the overall business now. And we won't see anything in the next quarter," the company executive said earlier in the call. 

 

The management said Zydus Lifesciences would be a part of the first wave of generic GLP-1, or Glucagon-like peptide-1, product launches in India after the expiry of the semaglutide patent in March. The company's research and development expenditure for FY26 is expected to be 7.5-8% of sales, as guided earlier by the company.

 

Zydus Lifesciences also hopes to become the largest player for anti-flu offerings in India "very soon," according to the management. Among the company's larger ambitions, it is targeting a business of over INR 10 billion from vaccines in the next three to four years, the management said.

 

Zydus Life reported nearly 13% on-year growth and over 7% sequential growth in its India formulations business for the December quarter at INR 17.09 billion. This segment accounts for nearly 25% of the company's total revenue. 

 

Zydus Lifesciences is also confident about growth in its US business next year despite no generic Revlimid sales. "...the base business is robustly growing. We still continue to launch meaningfully a lot of products in the US and will continue this year also...as the year comes nearer to the end, we'll have some exclusive launches also. So we will see good growth continue in the US generics business," the management said.

 

Zydus Lifesciences is preparing to file a new drug application for Saroglitazar Magnesium with the US Food and Drug Administration in the ongoing quarter. Overall, the company is looking to diversify its business in the US and expand its speciality drugs portfolio.

 

"...the specialty business will continue to grow and then finally, for our Saroglitazar part of the portfolio, once we come near to launch, we are hoping to find more assets to add to Saro (Saroglitazar)... mostly commercial assets," the management said.

 

On the two US biologics manufacturing facilities acquired from Agenus Inc., the management said commercialisation would start from the second half of FY27. However, a meaningful scale-up of the contract development and manufacturing business is at least two to three years away, it added.

 

The company's North America sales grew 16% on year and 2% sequentially to INR 28.04 billion in the December quarter. This region accounts for 41% of the company's total sales.

 

At 1324 IST, shares of Zydus Lifesciences were at INR 888.05 on the National Stock Exchange, down nearly 4%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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. 2026. All rights reserved.