Zydus Lifesciences Q3 FY26: Profit up 9%, sales +30%

Key takeaway

Zydus Lifesciences reported a strong Q3 FY26 on headline numbers, with adjusted profit rising and revenue expanding sharply. The quarter was supported by growth in India and North America formulations, improving margins, and steady momentum across generics and chronic therapies.

Q3 FY26 performance at a glance

Ahmedabad-based Zydus Lifesciences posted a 9% year-on-year jump in adjusted net profit for Q3 FY26 to ₹1,110 crore. Revenue from operations rose 30% year-on-year to ₹6,864.5 crore.

Operationally, the company pointed to momentum across generics, specialty, and chronic segments. The update also highlighted improved margins, alongside stronger performance in its key markets.

India business: formulations growth and chronic mix

Zydus said its India formulations business grew 13% during the quarter. The domestic business posted revenues of ₹1,709 crore, accounting for 25% of consolidated revenues.

Within India, the branded business grew faster than the market with 14% year-on-year growth, according to the text. The chronic segment continued to expand at a faster pace and remained a key driver of overall domestic growth.

The company also disclosed that the chronic portfolio’s share has risen steadily over several years and stood at 45.3%, up 560 basis points over the last three years (IQVIA MAT December 2025).

North America: steady growth and revenue share

North America remained the largest contributor in the disclosed regional split. North America business revenue came in at ₹2,804 crore, up 16% year-on-year and 2% quarter-on-quarter, accounting for 41% of consolidated revenues.

The quarter also saw North America formulations up 16.4%, as per the reported segment growth rates. The narrative indicated continued traction across the portfolio, supported by new launches and the base business.

Another reported quarter: profit, buyback, and stock move

Separately, the provided text also cites a results report for the three months ended December 31, stating consolidated net profit rose 27% to ₹790 crore, beating an LSEG-cited analyst estimate of ₹683 crore. It also reported revenue from operations rising 6% to ₹4,505 crore.

In the same report, Zydus approved a share buyback worth ₹600 crore via the tender offer route at a price of ₹1,005 per share, described as a 25% premium to the prior Thursday close.

The stock reaction in that report was volatile: shares rose 2.4% after results before reversing to trade 4.2% lower.

What brokerages said after Q2 FY26

The supplied material includes a detailed brokerage round-up around Q2 FY26, showing a split view despite broad agreement on operational execution.

• Nomura said Zydus delivered results above estimates, led by stronger-than-expected India performance. It noted US revenue of USD 313 million was USD 7 million below its estimate, citing lower contribution from gRevlimid. Nomura also said Ebitda was 4% ahead and PAT exceeded forecasts by 34%, aided by ₹414 crore in forex gains. The brokerage reiterated a Buy rating, cited management guidance of over 26% Ebitda margin for FY26, and valued the stock at ₹1,140 based on 30x FY27 EPS of ₹38 (excluding key products like gRevlimid and gMyrbetriq).

• Nuvama noted headline revenue beat consensus by 3%, but after adjusting for forex gains, Ebitda and PAT missed expectations by 1% and 11%, respectively. It flagged adjusted Ebitda margin of 26.2%, lower by 112 bps versus its forecast. Nuvama also said the outcome of Mirabegron litigation, expected in Q4 FY26, could be a key swing factor for FY27 profitability.

• Motilal Oswal Financial Services maintained a Neutral stance, pointing to steady traction in India’s chronic therapies and diversification through acquisitions in consumer wellness (Comfort Click) and med-tech (Amplitude Surgical). It valued the stock at a target price of ₹990.

Pipeline, launches, and guidance themes referenced

The text points to continued focus on US launches, including 30+ products in FY26, and a ramp-up in the 505(b)(2) pipeline in FY27. It also lists expected launches such as Saroglitazar (FY27), Ibrance generic (late FY27/early FY28), Desidustat in China (within 12 months), and CUTX-101 (FY26).

It also reiterates the company’s emphasis on expanding chronic and super-specialty therapies in India, alongside sustained growth expectations across international markets.

Key numbers table (all rupee figures in ₹ crore)

Market impact and what investors tracked

From the information provided, investor focus remained on the durability of growth across India and North America, and on how the company navigates a moderating US portfolio base that includes gRevlimid. The brokerage commentary also shows sensitivity to how much reported profitability is supported by forex gains in a given quarter.

The buyback announcement, priced at a premium in the cited report, was an additional trigger for near-term trading reaction. At the same time, analysts flagged litigation and product concentration as swing factors for FY27, especially around Mirabegron-related clarity expected in Q4 FY26.

Conclusion

Zydus Lifesciences’ recent updates point to improving profitability and strong revenue traction, led by India and North America, alongside a rising chronic mix in the domestic portfolio. The next set of milestones highlighted in the text include product-launch execution and regulatory or litigation outcomes, with specific focus on Q4 FY26 for key clarity points.