Zydus Lifesciences announced robust financial results for the third quarter of FY26 ending December 31, 2025. Total revenues grew by a significant 30% YoY to Rs. 68,645 mn, while EBITDA margin stood strong at 26.5%. Key growth drivers included sustained momentum in the India branded formulations business and accelerating growth in International Markets. Regulatory milestones included USFDA approval for Zycubo® and successful inspections.
Q3 FY26 Financial Performance at a Glance
Zydus Lifesciences reported a strong performance for the quarter ending December 31, 2025. Total revenues from operations reached Rs. 68,645 mn, marking a robust 30% Year-over-Year (YoY) growth. Gross Contribution stood at Rs. 50,282 mn, yielding a Gross Margin of 73.2%. EBITDA for the quarter was Rs. 18,164 mn (26.5% of revenues), representing a 31% YoY increase in margin terms.
Adjusted Net Profit demonstrated a 9% YoY growth, amounting to Rs. 11,109 mn. For the nine months ending December 2025 (9M FY26), total revenues were Rs. 1,95,614 mn (17.0% YoY growth), and Adjusted Net Profit grew by 15.2% YoY to Rs. 38,640 mn.
Key Segment Growth Drivers
The Pharmaceutical business fueled much of the growth:
- India Formulations: Sales grew by 12.9% YoY, with the branded business outpacing the Indian Pharmaceutical Market (IPM) growth. The Chronic segment expanded its share to 45.3%.
- North America: Sales increased by 16.4% YoY. Highlights included 4 new generic launches and USFDA approval for Zycubo®, a therapy for Menkes disease. The company also advanced its biosimilar pipeline.
- International Markets (IM): Sales accelerated, showing 38.2% YoY growth, driven by strong demand across regions.
The Consumer Wellness business contributed 14% to revenue, achieving 113.4% YoY growth, which included a full quarter consolidation of the Comfort Click Limited (CCL) business.
Capital Allocation and R&D Investment
R&D expenditure for Q3 FY26 stood at Rs. 6,074 mn, representing 8.8% of revenues. Organic Capex for the quarter totaled Rs. 4,637 mn. Net Debt to EBITDA improved to 0.36x as of December 31, 2025, down from (0.80x) in Q1 FY26. Net Working Capital saw an increase to Rs. 75,938 mn.
Innovation and Regulatory Updates
Significant progress was noted across innovation pipelines:
- NCE Research: Preparation to file an NDA for Saroglitazar Magnesium with the USFDA in the current quarter.
- Biotech R&D: Received approval to initiate Phase III clinical trials for the second biosimilar ADC in India.
- Vaccines R&D: Initiated Phase II clinical trial for Bivalent Typhoid Conjugate Vaccine and secured tenders to supply rabies and typhoid conjugate vaccines to PAHO and UNICEF, respectively.
- MedTech: Received CE mark approval for the proprietary ‘Andy’ robotic surgical system.
ESG Commitments Recognized
The company’s commitment to sustainability was highlighted by external recognitions. Zydus Lifesciences was named “Winner of Vatavruksha Award in Large Cap Companies” by ICMAI. Furthermore, the S&P Global ESG Score for 2025 is 84, placing the company among the Top 3 in the Global Drug & Pharmaceutical Sector.
Source: BSE
