Zydus Lifesciences beats expectations, plans to raise ₹5,000 crore

Zydus Lifesciences Ltd reported double-digit revenue and profit growth on Thursday, beating expectations for the September quarter.

The Ahmedabad-based drugmaker’s consolidated revenue from operations grew 17% year-on-year to ₹6,123.2 crore, while net profit grew 38% on-year to ₹1,258.6 crore.

A Bloomberg poll had pegged revenue at ₹5,953 crore and net profit at ₹1,088.9 crore.

Its earnings before interest, taxes, depreciation, and amortization (Ebitda) for the quarter stood at ₹2,015.8 crore, up 38% on-year, while Ebitda margin expanded 500 basis points on-year to 32.9%.

The growth was driven by outperformance in its US and India formulations business, as well as sustained high growth in international markets. Strategic acquisitions in wellness and medtech also aided growth, the company said.

“Our strong performance this quarter reaffirms the power of our diversified business model and our execution capabilities across geographies and verticals,” said managing director Sharvil Patel.

The company, in an exchange filing, also said that its board had approved a ₹5,000 crore fundraise in one or more tranches through a qualified institutional placement (QIP), rights issue, preferential allotment, or private placement, subject to shareholder and regulatory approvals. However, it did not specify how the funds would be used.

Growth across segments

Its India formulations business registered an 8% on-year revenue growth to ₹ ₹1,593 crore. The business accounted for 26% of total revenues. Its branded formulations business grew faster than the market at 9%, and it outpaced the broader Indian pharmaceutical market growth in key therapies like cardiology, gynaecology, and oncology.

Its US business saw the revenue grow by 14% on-year to ₹2,743.7 crore, although it declined 14% sequentially. The business accounted for 45% of the consolidated revenue.

The drugmaker’s US performance met analyst expectations, with revenues expected to dip sequentially due to lower sales of the blood cancer drug Revlimid, but offset by sales of the diabetes drug Sitagliptin.

“We expect US business to decline 14% quarter-on-quarter to $320 million, owing to depleted Revlimid sales, partly offset by revenue growth from Sitagliptin. We expect India business revenue to grow 8% on-year,” BNP Paribas analysts said in a 10 October note.

Its international formulations business, which accounts for 12% of total revenues, grew 39% on-year to ₹751.3 crore. “Growth was broad-based across regions, with strong demand-driven performance in both emerging markets and Europe, supported by focused execution,” the company said.

Zydus has also been expanding across other segments, including wellness and medtech. In the last quarter, it acquired UK-based Comfort Click Ltd, marking the first international acquisition in the wellness space.

It also completed a 100% acquisition of the French medtech firm Amplitude Surgical in October 2025.

The company’s shares ended 3.80% lower on NSE on Thursday at ₹934.80 apiece, while Nifty declined 0.34%.