Zydus Lifesciences (ZYDUSLIFE) Q3 24/25 earnings summary

Executive summary

• Achieved strong double-digit revenue and profit growth for Q3 FY25, with consolidated revenue rising 17% year-on-year to INR 52,691 million and net profit up 30% to INR 10,235 million, driven by robust performance across U.S., India, and international markets.

• U.S. formulations business grew 31% year-on-year, supported by volume expansion and new product launches, while India formulations and consumer wellness businesses outpaced market growth, led by the chronic segment.

• International formulations, including emerging markets and Europe, continued strong growth, becoming a key growth engine.

• Consumer Wellness business achieved double-digit growth, with strong personal care demand and the acquisition of Naturell (India) Pvt Ltd, entering the healthy snacking segment.

• Board approved unaudited results for the quarter and nine months ended December 31, 2024, reviewed by the Audit Committee and subject to limited review.

Financial highlights

• Consolidated revenues reached INR 52,691 million, up 17% year-on-year; net profit rose to INR 10,235 million, up 30% year-on-year.

• EBITDA grew 26% year-on-year to INR 13,876 million; reported EBITDA margin at 26.3% (vs. 24.5% last year); gross margin improved to 74.4%.

• Adjusted EBITDA margin (excluding non-recurring expenses) was 28.1%.

• Net cash position improved to INR 30,916 million as of December 31, 2024.

• R&D expenses were INR 5,031 million, representing 9.5% of revenues.

Outlook and guidance

• Confident of meeting growth and profitability aspirations for FY25, with U.S. business expected to sustain growth through a robust product pipeline and new launches.

• India and international markets to continue outpacing market growth, supported by innovation and portfolio expansion.

• FY26 expected to see growth over FY25, with 25–30+ new launches planned and exclusive launches in FY27.

• Tax expenses for the quarter and nine months ended December 31, 2024 are not comparable due to a change in tax provision methodology.