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Informist, Tuesday, May 19, 2026

 

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--Zydus Life Jan-Mar consol net profit INR 12.73 bln
--Analysts saw Zydus Life Jan-Mar consol net profit INR 9.70 bln
--Zydus Life Jan-Mar consol revenue INR 75.87 bln
--Analysts saw Zydus Life Jan-Mar consol revenue INR 68.96 bln
--Zydus Life Jan-Mar consol PAT INR 12.73 bln vs INR 11.71 bln year ago
--Zydus Life Jan-Mar consol revenue INR 75.87 bln vs INR 65.28 bln year ago
--Zydus Life to pay INR 1 per share final dividend
--Zydus Life Jan-Mar net profit includes one-time cost INR 3.98 bln
--Zydus Life gained INR 6.45 bln on forex transactions in Jan-Mar
--Zydus Life FY26 consol PAT INR 50.40 bln vs INR 45.26 bln yr ago
--Zydus Life FY26 consol revenue INR 271.48 bln vs INR 232.42 bln yr ago
--Zydus Life to buy back shares worth INR 11 bln at INR 1,150 per share
--Zydus Life buy back record date is May 29
--Zydus Life final dividend record date is Jul 24
--Zydus Life Jan-Mar consol EBITDA INR 25.54 bln vs INR 21.26 bln yr ago
--Zydus Life Jan-Mar consol EBITDA margin 33.7% vs 32.6% yr ago
--Zydus Life Q4 India formulation sales INR 17.53 bln vs INR 15.37 bln yr ago
--Zydus Life Q4 N America formulation sales INR 29.52 bln vs INR 31.31 bln
--Zydus Life Q4 N America formulation sales down 5.7% on year
--Zydus Life Q4 India formulation sales up 14% on year
--Zydus Life Q4 consumer wellness sales INR 14.63 bln vs INR 9.08 bln yr ago
--Zydus Life Q4 consumer wellness sales rise 61.1% on year
--Zydus Life reappoints Sharvil P Patel as MD for 5 years from Apr 1, 2027
--Zydus Life Q4 intl mkt formulation sales INR 8.04 bln, up 45% on yr
--Zydus Life Jan-Mar organic capex INR 3.58 bln vs INR 3.20 bln year ago
--Zydus Life Jan-Mar R&D expense INR 6.98 bln or 9.2% of revenue
--Zydus Life Jan-Mar one-time cost due to Mirabegron litigation settlement
--Zydus Life Q4 consol PAT at INR 15.93 bln without one-time settlement cost
--Zydus Life Q4 N America formulation sales $323 mln in constant currency

 

By Eshitva Prakash

 

MUMBAI – Upsetting the consensus view on the Street, Zydus Lifesciences Ltd. reported a rise in its net profit for the quarter ended March. This was largely driven by sharply higher-than-estimated growth in revenue and a gain from the rupee's depreciation. The company's bottom-line growth would have been even better, had it not been impacted by a one-off settlement fee paid to Astellas for the Mirabegron drug. Zydus Life's domestic sales were healthy while the downturn in its US business was not very sharp.

 

The pharmaceutical major reported a consolidated net profit of INR 12.73 billion, up nearly 9% on year and over 22% on quarter. Analysts had estimated a 30?ll in the metric to INR 9.70 billion. The company reported a foreign exchange gain of INR 6.45 billion in the quarter, which significantly boosted its bottom line. However, its settlement with Astellas cost it and its subsidiary, Zydus Pharmaceuticals USA, INR 10.60 billion, of which the parent company paid INR 3.98 billion. Adjusting for this impact, the company said its bottom line would have risen to 15.93 billion. Discounting foreign exchange gains and overlooking the settlement fees, the company's net profit would still have been well above analysts' projections.

 

The company reported sales of products worth INR 74.34 billion, up over 18% on year. Its consolidated revenue for the period rose over 16% on year to INR 75.87 billion, significantly higher than analysts' projection of INR 68.96 billion. For the reporting quarter, its top-line figure was 10.5% higher than the trailing quarter.

 

The company reported a rise of over 20% on year in its total expenses for the quarter to INR 56.64 billion. Other expenses rose over 45% on year to INR 24.62 billion. Costs of materials consumed rose nearly 16% on year to INR 13.47 billion and employee benefit expenses rose 27.5% on year to INR 12.39 billion. The other income for the quarter was up nearly 67% on year at INR 1.34 billion.

 

The company's earnings before interest, tax, depreciation, and amortisation margin expanded to 33.7%, up from 32.6% a year ago, while the EBITDA improved to INR 25.24 billion from 21.26 billion, sharply above the consensus projection of INR 16.67 billion. Analysts had said the company's EBITDA margin was likely to expand unlike its peers facing a fall in sales of high-margin drug generic Revlimid, largely because of the better margin business of its subsidiaries Medtech and the consolidation of Comfort Click.

 

The company's consolidated pharmaceutical sales in the March quarter were up nearly 3% on year at INR 57.76 billion while consumer products segment sales were up almost 63% on year at INR 14.83 billion. The pharmaceutical business accounted for three-fourths of the total sales, while consumer health accounted for almost 20%. The balance sales contribution came from Zydus Life's medical technologies segment, which scaled up to INR 3.28 billion from just INR 17 million in the year-ago quarter.

 

Zydus Life North America formulation sales were down 6% on year and 5% sequentially at INR 29.52 billion. This region accounts for 40% of the company's total sales. The company launched six new products in the US and filed three new drug applications with the US regulator during the quarter. The US formulations revenue for the quarter was $323 million in constant currency terms, the company said.

 

Zydus Life reported nearly 14% year-on-year growth in its India formulations business in the March quarter to INR 17.53 billion. This segment accounts for nearly 24% of the company's total revenue. Its branded drugs business grew faster than the Indian pharmaceutical market with 15% year-on-year growth. The company said its therapies such as cardiology, respiratory, dermatology, and super specialty areas of oncology and nephrology had overtaken Indian pharmaceutical market growth. 

 

"We closed FY26 on a strong note, delivering on our commitments--both on revenue growth and profitability," Sharvil Patel, managing director, said in a press release. "Our near-term priorities are clear: maintain consistent quality standards, integrate our recent acquisitions, and capture synergies swiftly. Finally, our strong balance sheet ensures we have the flexibility to invest and strengthen our businesses further."

 

Zydus Life's international formulations segment sales grew 45% on year to INR 8.04 billion in the March quarter. This segment contributed 11% to the overall sales. The international formulations business includes Europe and emerging markets. Zydus Life said growth was broad-based across regions, with strong demand-driven performance in both emerging markets and Europe, supported by focused execution.

The company's active pharmaceutical ingredient business revenue for the quarter was INR 1.22 billion, down 6% on year. Its capital expenditure on an organic basis for the quarter was INR 3.58 billion, up from INR 3.20 billion in the year-ago quarter. The company spent INR 6.98 billion on research and development in the reporting quarter, which is equivalent to 9.2% of its revenue for the quarter.

For the financial year 2025-26 (Apr-Mar), Zydus Life's consolidated net profit rose over 11% to INR 50.40 billion on revenues of INR 271.48 billion, up almost 17% from FY25. The board announced a dividend of INR 1 per share. The record date for the dividend is Jul. 24. The board also decided to reappoint Patel as managing director for five years from Apr. 1, 2027.

 

Zydus Lifesciences reported its earnings during market hours Tuesday. Its shares ended at INR 1,018.90 on the National Stock Exchange, up 2.8% from Monday.  End

 

US$1 = INR 96.53

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

 

Edited by Rajeev Pai

 

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