Zydus Lifesciences reported robust Q3 FY26 financial performance, achieving ₹68.6 billion in consolidated revenues, a 30% year-on-year increase. EBITDA grew 31% to ₹18.2 billion, with an operating margin of 26.5%. Key growth drivers included North America (up 16%) and a 113% jump in Consumer Wellness due to acquisitions. The company also announced strategic advancements in its innovation pipeline, including the planned US FDA filing for Saroglitazar Magnesium and a CE Mark for its Andy robotic surgical system.
Zydus Q3 FY26 Financial Performance
Zydus Lifesciences concluded the quarter ended December 31, 2025, with strong operational and financial results. Consolidated revenues for the quarter reached ₹68.6 billion, marking a 30% increase on a year-on-year basis. Even excluding acquisitions, the underlying base business sustained double-digit growth.
EBITDA for the quarter stood at ₹18.2 billion, reflecting a 31% growth year-on-year. The operating profitability remained strong, yielding an EBITDA margin of 26.5%, which was an improvement of 20 basis points year-on-year. Adjusted net profit for the quarter was ₹11.1 billion, growing 9% year-on-year.
Key Business Segment Highlights
Pharmaceuticals
The North America business, covering the US and Canada, registered revenues of ₹28 billion, growing 16% year-on-year, driven by volume expansion and new product launches. On the US generics front, the company filed 18 ANDAs and launched 4 new products. A significant specialty milestone was the launch of BEIZRAY, the company’s first oncology 505(b)(2) product.
Further progress in orphan and rare diseases included receiving final USFDA approval in January 2026 for Zycubo (copper histidinate) for Menkes disease, bringing Sentynl’s marketed rare disease products to three.
In India, the branded formulation business sustained momentum with a robust 14% year-on-year growth, outpacing market growth. The chronic portfolio now contributes 45.3% of the business (as per IQVIA MAT December 2025), an improvement of 560 basis points over three years.
The International Markets formulation business accelerated growth to 38% year-on-year, posting revenues of ₹7.9 billion.
Consumer Wellness
The Consumer Wellness segment achieved revenues of ₹9.6 billion, an increase of 113% year-on-year, primarily due to the full quarter consolidation of the recently acquired Comfort Click business. Excluding this impact, the underlying business delivered double-digit volume growth.
Medical Devices (MedTech)
The Medical Devices space registered revenues of ₹3 billion, representing the first full quarter consolidation of the Amplitude Surgical’s business. On the operations front, key regulatory successes included receiving an EIR with no action indicated status for the Ahmedabad SEZ formulation facility in August 2025.
Innovation and R&D Pipeline Progress
Dr. Sharvil Patel confirmed the company’s commitment to R&D, guiding for 7.5%-8% of revenue for FY26. Key innovation milestones mentioned:
- NCE Front: Plan to file Saroglitazar Magnesium with the USFDA for the PBC indication.
- Biotech R&D: Received regulatory approval in India to initiate Phase III trials for the second biosimilar ADC.
- Vaccines: Secured a tender to supply rabies vaccine to PAHO and the typhoid conjugate vaccine to UNICEF.
- 505(b)(2): Entered an exclusive licensing agreement for a novel sterile 505(b)(2) supportive oncology care product, targeting a USFDA NDA filing in 2026.
- MedTech: Achieved CE mark approval for the proprietary Andy robotic surgical system.
Outlook and US Strategy
Management expressed optimism regarding the upcoming US NDA filing for Saroglitazar. The US biosimilar space saw a critical milestone with the licensing of two large molecules: Pembrolizumab and Ranibizumab.
Regarding future guidance, the company expects the US generics business to see good growth continuing, supported by base business strength and exclusive launches towards year-end. For the emerging markets, 20% plus growth is anticipated for the next year.
Source: BSE
