Zydus Lifesciences Ltd. is an India-based life sciences company. The Company is engaged in the research and development, manufacturing, marketing and selling of finished dosage human formulations, such as generics and specialty formulations, including biosimilars and vaccines; active pharmaceutical ingredients (APIs); animal healthcare products, and consumer wellness products. In 1995, the group was restructured, and thus was formed Cadila Healthcare under the aegis of the Zydus group.
The company has established itself as a prominent player in the Indian pharmaceutical sector, demonstrating consistent growth and innovation across multiple therapeutic areas. Adhering to its brand promise of being dedicated to life in all its dimensions, Zydus continues to innovate with an unswerving focus to address the unmet healthcare needs. The organization maintains its headquarters in Ahmedabad, Gujarat, and operates through a comprehensive network of manufacturing facilities and subsidiaries across multiple countries.
Zydus Lifesciences currently commands a market capitalization of ₹1,00,724 Crore (down -13.9% in 1 year) with revenue of ₹23,242 Crore and profit of ₹4,673 Crore. Promoter holding stands at 75.0%. The company's financial trajectory shows remarkable growth from its earlier days, having expanded from a humble turnover of ₹250 Crore in 1995 to witnessing significant financial growth and registering a turnover of over ₹14,253 Crore in FY20.
Recent quarterly performance demonstrates mixed results, with strategic focus areas showing positive momentum. The company's consolidated net profit slipped about 1% year-on-year (Y-o-Y) to ₹1,171 Crore in the March quarter of financial year 2025 (Q4 FY25), from ₹1,182 Crore in Q4 FY24. However, revenue growth remained robust, with Zydus Lifesciences' revenue soaring 18% Y-o-Y to ₹6,527.9 Crore in Q4 FY25, from ₹5,533.8 Crore in Q4 FY24.
The company's Q3 FY25 performance showed stronger momentum with revenue jumping 16.69% since last year same period to ₹5,326.60 Crore and net profit jumping 29.62% since last year same period to ₹1,023.50 Crore in Q3 FY2024-2025.
- Q4 FY25 Revenue: ₹6,527.9 Crore (18% YoY growth)
- Q4 FY25 Net Profit: ₹1,171 Crore (1% YoY decline)
- Q3 FY25 Revenue: ₹5,326.60 Crore (16.69% YoY growth)
- Q3 FY25 Net Profit: ₹1,023.50 Crore (29.62% YoY growth)
- R&D Investment: ₹479.9 Crore (7.4% of revenues in Q4 FY25)
The Board of directors has recommended a final dividend of ₹11 (at 1,100%) per equity share of ₹1 each, subject to approval of the shareholders at the ensuing Annual General Meeting scheduled to be held on August 12, 2025.
The company operates through two segments: Pharmaceuticals and Consumer Products. Zydus maintains a diversified portfolio spanning multiple therapeutic areas and market segments.
The company's products include Bilypsa (saroglitizar), Oxemia (desidustat), Ujvira (biosimilar Kadcyla), and Exemptia. It offers Bilypsa drug for non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH). Desidustat is an oral, small molecule hypoxia-inducible factor-prolyl hydroxylase (HIF-PH) inhibitor, which is used for the treatment of anemia in chronic kidney disease (CKD) patients.
The formulation business demonstrated solid performance with revenues of ₹1,539.4 Crore, up 11% Y-o-Y. The business accounted for 25% of consolidated revenues.
The consumer wellness business clocked revenues of ₹908.1 Crore, up 17% Y-o-Y with 13% volume growth. The business accounted for 14% of revenues.
The API business registered revenues of ₹129 Crore, down 10% Y-o-Y. The business accounted for 2% of consolidated revenues.
The company is also developing an oral small molecule ZYIL1, targeted at selectively suppressing inflammation caused by the NLRP3 inflammasome. The Research & Development (R&D) investments for the quarter stood at ₹479.9 Crore (7.4% of revenues).
Recent regulatory achievements include receiving tentative approval from the USFDA for Rifaximin Tablets, 550 mg, indicated for irritable bowel syndrome with diarrhea, with significant annual sales potential. Additionally, Zydus Lifesciences' stock reached a two-month high following the USFDA's fast track designation for Usnoflast, a treatment for ALS, emphasizing the urgent need for effective therapies.
The company has been actively pursuing strategic acquisitions to strengthen its position in the biologics space. Zydus Lifesciences is significantly enhancing its position in the global biologics market by acquiring two manufacturing facilities from Agenus and securing commercial rights for immuno-oncology therapies in India and Sri Lanka.
Zydus Lifesciences showcases strong Q4 results with a 34% net profit increase. The company plans to expand its vaccines and medtech portfolio, targeting double-digit growth in FY26. The company targets double-digit revenue growth for FY26, despite a dip in Q4 profit to ₹1,244 Crore. The company declares a final dividend of ₹11 per share, pending AGM approval. Overall, strong performance in US and India markets supports growth outlook.
43.75% of analysts recommend a 'HOLD' rating for Zydus Lifesciences with an average target price of ₹986.5. The company's commitment to maintaining operational excellence is evident through recent regulatory approvals, with shares increasing by 1% following the receipt of the Establishment Inspection Report from the USFDA for its Ankleshwar facility, classified as No Action Indicated. The company also made a strategic entry into the global biologics CDMO market and received tentative approval for Rifaximin Tablets for IBS-D treatment.
The company's managing director, Sharvil Patel, emphasized their "commitment to maintaining the highest quality standards across our operations remains unwavering." Recent regulatory achievements include multiple USFDA approvals and successful facility inspections, demonstrating the company's adherence to international quality standards.
Management expressed confidence in their strategic direction, noting they "made meaningful progress in our differentiated pipeline and added new capabilities to ensure sustainable growth. We look forward to continued execution success and deepening strategic partnerships to drive long term growth."
The company's stock continues to attract investor attention with its diversified business model, strong R&D capabilities, and strategic expansion initiatives positioning it well for sustained growth in the evolving pharmaceutical landscape.
