Zydus Lifesciences Q3 Results: Profit Soars 29.6%, Strong Revenue Grows 16.9%
Zydus Lifesciences Ltd: Overview
Zydus Lifesciences Ltd., formerly known as Cadila Healthcare Ltd., is a global pharmaceutical company headquartered in Ahmedabad, India. With a strong focus on research and development, Zydus is engaged in the discovery, development, manufacturing, and marketing of a wide range of pharmaceutical products, including generics, branded formulations, biosimilars, vaccines, and APIs (Active Pharmaceutical Ingredients). The company has a significant presence in both domestic and international markets, catering to diverse therapeutic areas like cardiovascular, diabetes, oncology, pain management, and infectious diseases. Zydus operates manufacturing facilities and research centers across India and other countries, and its products are sold in numerous markets worldwide. The pharmaceutical industry is experiencing robust growth, driven by factors like an aging global population, increasing prevalence of chronic diseases, rising healthcare expenditure, and growing demand for affordable medicines. The industry is also witnessing a shift towards innovative therapies, including biologics and biosimilars, creating opportunities for companies like Zydus with strong R&D capabilities. Furthermore, the increasing focus on preventive healthcare and wellness is contributing to the growth of the pharmaceutical market. While the industry faces challenges like stringent regulatory requirements, pricing pressures, and increasing competition, the overall outlook remains positive, with continued growth expected in the coming years. Zydus, with its diversified product portfolio, global presence, and focus on innovation, is well-positioned to capitalize on these growth opportunities.
Latest Stock News
Zydus Lifesciences experienced strong performance across several business segments. The India formulations business outperformed the market, driven by robust growth in chronic therapies, with secondary sales growth of 8% according to IQVIA. The Consumer Wellness business also delivered double-digit growth, supported by a healthy 4.8% volume increase despite a generally muted demand environment within the industry. The US formulations business maintained its positive momentum, achieving significant year-over-year growth fueled by both volume expansion and new product launches over the past year. International markets contributed to the overall success with double-digit growth driven by strong demand across various regions. The company’s capital expenditure for the quarter totalled ₹2,907 million, and its net cash position significantly improved to ₹30,916 million as of December 31, 2024, compared to ₹8,561 million at the end of March 2024. In Biotech & R&D it completed Phase III clinical trials for one of the biosimilars. Zydus continued to solidify its leadership in Nephrology and Oncology within its Super Specialty offerings. The Personal Care segment also saw strong demand and achieved robust double-digit growth. In the US formulations business specifically, Zydus filed 10 ANDAs (Abbreviated New Drug Applications), received approvals for 3 new products, and launched 5 new products.
Business Segments
- Generics: This segment focuses on the development, manufacturing, and marketing of generic pharmaceutical formulations. Zydus has a vast portfolio of generic medicines across diverse therapeutic areas, providing affordable treatment options to patients globally. Zydus continues to invest in R&D to expand its generic product portfolio and maintain its competitive edge.
- Branded Formulations: This segment comprises the development and marketing of branded pharmaceutical formulations, including prescription and over-the-counter (OTC) medications. Zydus has a portfolio of branded formulations in various therapeutic areas, catering to specific patient needs. The branded formulations business is driven by innovation, marketing efforts, and brand building.
- API (Active Pharmaceutical Ingredients): This segment focuses on the development and manufacturing of active pharmaceutical ingredients, which are the key components of pharmaceutical formulations. Zydus is a leading player in the API market, supplying high-quality APIs to both internal and external customers.
- Consumer Wellness: This segment focuses on the development, manufacturing, and marketing of consumer wellness products, including nutraceuticals, vitamins, and other health supplements. This segment allows Zydus to cater to the growing consumer focus on health and wellness. Zydus continues to expand its consumer wellness product portfolio to meet the evolving needs of consumers.
- Animal Health: This segment focuses on the development, manufacturing, and marketing of animal health products, including pharmaceuticals and vaccines for livestock and companion animals. This segment caters to the growing demand for animal health products, driven by increasing pet ownership and the growing livestock industry. Zydus continues to invest in research and development to expand its animal health product portfolio.
Subsidiary Information
- Zydus Wellness Ltd: The Company’s subsidiary spearheads the group’s operations in the wellness space. ZWL operates in two different segments viz. personal care segment and food and nutrition segment and has a portfolio of category-leading health and wellness products. Five out of the six brands of the Company continue to hold leadership positions in their respective categories
- Zydus Pharmaceuticals (USA) Inc.: It operates as Zydus’s main subsidiary in the United States, focusing on manufacturing and marketing generic formulations approved by the U.S. FDA. A significant contributor to Zydus’s international revenue, given the high demand for generics in the U.S. market.
- Zydus Healthcare Ltd: It manages Zydus’s branded formulations business in India, catering to a wide range of therapeutic areas such as cardiovascular, gastrointestinal, pain management, and oncology. A major revenue driver for Zydus in the Indian domestic market.
- Zydus Animal Health and Investments Ltd: It provides animal health products across livestock, poultry, and companion animals, including treatments, nutritional supplements, and anti-infectives. It expands Zydus’s reach into veterinary and animal health segments, which are growing markets in India and internationally.
- Zydus Biosimilars Ltd: A dedicated unit for biosimilars, developing and commercializing biosimilars for therapeutic areas like oncology, immunology, and nephrology. Positions Zydus as a key player in biosimilars, targeting high-growth opportunities in biologics.
Q3 FY25 Earnings
- Revenue of ₹5269 crore in Q3 FY25 up by 16.9% YoY from ₹4505 crore in Q3 FY24.
- EBITDA of ₹1388 crore in this quarter at a margin of 26% compared to 24% in Q3 FY24.
- Profit of ₹1026 crore in this quarter compared to a ₹790 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 4505 | 5269 | 17237 | 19547 |
| Expenses | 3403 | 3882 | 13378 | 14163 |
| EBITDA | 1102 | 1388 | 3860 | 5384 |
| OPM | 24% | 26% | 22% | 28% |
| Other Income | 60 | 57 | -422 | 293 |
| Net Profit | 790 | 1026 | 2092 | 3973 |
| NPM | 17.5% | 19.5% | 12.1% | 20.3% |
| EPS | 7.8 | 10.2 | 19.4 | 38.4 |
