Zydus Lifesciences Q3 FY26: Revenue Soars 30% to ₹6,865 Crore

Introduction to Zydus Lifesciences' Q3 Performance

Zydus Lifesciences announced a strong financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The Ahmedabad-based pharmaceutical company reported a 30.3% year-on-year increase in revenue from operations, reaching ₹6,864.5 crore. This growth was primarily fueled by robust sales in its key markets of North America and India. Adjusted net profit for the quarter saw a 9% year-on-year rise to ₹1,110 crore, demonstrating healthy operational efficiency despite certain one-time expenses.

Detailed Financial Highlights

The company's top-line growth was significant, climbing from ₹5,269.1 crore in the same quarter of the previous year. However, the reported consolidated net profit remained nearly flat at ₹1,042 crore, a marginal increase from ₹1,024 crore in Q3 FY25. This discrepancy between adjusted and reported profit is attributed to an exceptional one-time expense of ₹84.9 crore. This charge was related to an increase in gratuity and leave encashment liability following the enactment of new labour codes by the government.

Operationally, Zydus Lifesciences performed well. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹1,816.4 crore, a 31% increase year-on-year. The EBITDA margin improved slightly by 20 basis points to 26.5%, indicating disciplined cost management and improved profitability at the operational level.

Financial Performance Snapshot: Q3 FY26

North America Business Drives Growth

The North American market, which is the company's largest revenue contributor, delivered a strong performance. The segment's revenue grew by 16.4% year-on-year to ₹2,804 crore, accounting for 41% of the company's consolidated revenues. This growth was supported by new product launches and a strengthening specialty portfolio. During the quarter, Zydus launched four new products in the US, filed 18 Abbreviated New Drug Applications (ANDAs), and received eight approvals.

A key development was the launch of Beizray, its first oncology 505(b)(2) product, which enhances its specialty offerings. Furthermore, in January 2026, the company received US FDA approval for Zycubo, the first and only approved treatment for the ultra-rare Menkes disease. Zydus also expanded its manufacturing capabilities by acquiring two biologics facilities in California from Agenus Inc.

Steady Momentum in the India Market

The domestic formulations business also posted solid results, with revenues growing 13% year-on-year to ₹1,709 crore. This performance was faster than the overall market growth. The chronic therapies segment continued to be a significant growth driver. The share of the chronic portfolio in the India business has consistently increased, reaching 45.3% as of December 2025, an improvement of 560 basis points over the last three years. This shift towards chronic treatments provides a stable and growing revenue stream for the domestic business.

Management Commentary and Outlook

Sharvil Patel, Managing Director of Zydus Lifesciences, commented on the results, stating, “Our disciplined M&A and business development strategy is translating into tangible results, laying a strong foundation for sustained value creation.” He also noted that the company is on track to achieve its fiscal year 2026 goal of double-digit growth across its key businesses, coupled with improved profitability.

The company's focus on portfolio execution in the US, gaining market share in specific therapy areas in India, and leveraging its global portfolio in international markets are expected to sustain this growth momentum.

Conclusion

Zydus Lifesciences' Q3 FY26 results underscore a period of robust operational strength and strategic execution. The significant 30% revenue growth, driven by both its largest international market and its home market, highlights the success of its diversified business model. While a one-time charge kept reported profit growth modest, the underlying operational performance and the 9% rise in adjusted profit reflect a healthy and expanding business. Strategic product launches, key regulatory approvals, and acquisitions position the company well for continued growth in the coming quarters.