Zim Laboratories Limited is a pharmaceutical company that develops, manufactures, and supplies oral, solid differentiated generic pharmaceutical formulations and pre-formulation intermediates (PFI) in various therapeutic segments. ZLL was incorporated in February 1984 under the name and style of Zim Laboratories Private Limited in the State of Maharashtra. The Company became a Public Limited Company through a fresh Certificate of Incorporation issued by the Registrar of Companies, Maharashtra, Mumbai. It is engaged in the manufacturing of formulation drugs and pre-formulation ingredients in India and marketing and selling these within and outside India.
ZLL is an EU-GMP, WHO-GMP, NSF/ANSI 455-2 certified research-driven pharmaceutical company that develops, manufactures, and supplies generic products in oral solid dosage forms, both as pre-formulation intermediates and finished formulations for certain key therapeutic segments. The company operates across multiple therapeutic areas and has established itself as a specialized player in the pharmaceutical formulations space.
The company is developing products in various therapeutic segments like central nervous system, anti-biotic and anti-infective, gastrointestinal, cardiovascular, analgesic/pain management, urology, and vitamins, minerals, and dietary supplements. Its product offerings include finished formulations and pre-formulations intermediates, which include granules, pellets, taste-masked powders, dry suspensions, tablets, capsules, and oral thin films.
The company's technological capabilities include drug release modification, solubility and stability enhancement, taste masking, and dosage form transformation. This technological expertise enables ZIM Laboratories to offer differentiated solutions in the competitive pharmaceutical market.
ZIM Laboratories reported revenue of ₹108.73 Cr and net profit of ₹4.88 Cr for Q4 FY25 (March 2025). The company reported a total operating income of INR 1,087 million for Q4 FY25, reflecting a 12.9% increase on a quarter-to-quarter basis. However, the company's net profit fell -39.68% from the same period last year to ₹4.88 Cr in Q4 FY2024-2025.
The company's pharmaceutical segment contributed 75% of the total revenue, while export markets accounted for 83% of the total revenue, showcasing the company's successful international expansion. The innovation-led segments, including new innovative products, contributed significantly to revenue, accounting for 16.5% of total revenue.
For the full year FY25, the company reported revenue of ₹379 Cr and profit of ₹12.2 Cr. The domestic market revenue declined from INR 64.6 Cr in FY24 to INR 53.6 Cr in FY25, partly due to voluntary reduction in low-margin business and market headwinds.
As of June 30, 2025, the market cap of Zim Laboratories Ltd stood at Rs. 543.39 Cr. The current PE ratio of Zim Laboratories Ltd (ZIMLAB) is 42.40 and the current PB ratio is 2.06. The 52-week high of Zim Laboratories Ltd stock is ₹128.90 while the 52-week low is ₹79.49.
Promoter holding in Zim Laboratories Ltd has remained stable at 33.26% as of Mar 2025 from 33.26% as of Jun 2024. The main management includes Anwar S Daud as chairman and Piyush Nikhadi as the company secretary for Zim Laboratories Ltd.
During the year 2019-20, ZIM Health Technologies Limited was acquired, thereby becoming a wholly owned subsidiary of the company. SIA ZIM Laboratories Limited was incorporated as a wholly owned subsidiary in Latvia. In 2023, the Company launched Thinoral (Patented Oral Thin Film technology) as an alternate drug delivery platform across RoW/Pharmerging Markets and EU.
Strategic investments in R&D, now at 9.7% of revenue, and a focus on expanding into developed markets are expected to enhance product offerings and market presence. The company completed key strategic capital projects, including a dedicated neurology suite and a specialized liquid and pellet technology suite, enhancing its infrastructure and innovation capabilities.
Dimethyl Fumarate Modified Release Capsules are indicated for the treatment of relapsing forms of multiple sclerosis (MS) and are developed using ZIM's proprietary technology and are bioequivalent to the Innovator's product. According to IQVIA, the EU market size for this product in 2023 was approximately $800 million, while the UK contributed $200 million. Other markets (Ex USA & Japan) contributed $42 million.
The company has delivered a poor sales growth of 6.42% over the past five years. Despite the growth in innovative segments, the company's overall margins have not shown significant improvement, with the EBITA margin only slightly increasing from 11% to 12%. The finance cost increased to INR 114 million, up from INR 69 million last year, primarily due to increased borrowing, impacting the company's financial health.
However, the company is poised for improved profitability as it navigates regulatory landscapes and capitalizes on innovative technologies, positioning itself favorably against competitors. Overall, a commitment to operational stability and strategic partnerships underpins the company's positive outlook for the remainder of the fiscal year.
ZIM Laboratories Ltd represents a specialized pharmaceutical company with strong export orientation and a focus on innovative drug delivery technologies. While facing margin pressures and competitive challenges in the domestic market, the company's emphasis on R&D investments and international expansion provides potential growth opportunities in the evolving pharmaceutical landscape.
