Zydus Lifesciences (ZYDUSLIFE) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth year-over-year, with Q3 FY25 revenue from operations rising 17% to INR 52,691 million and net profit up 30% to INR 10,235 million, driven by strong U.S., India, and international businesses.

• U.S. formulations grew 31% year-over-year, India outpaced market growth, and Consumer Wellness delivered double-digit growth, supported by robust volume gains and new product launches.

• International formulations, including emerging markets and Europe, continued to deliver strong growth, establishing a third growth engine.

• Innovation pipeline advanced with key regulatory milestones in NCEs, biologics, specialty products, and ongoing clinical trials.

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

Financial highlights

• Consolidated revenues reached INR 52,691 million, up 17% year-over-year for Q3 FY25; net profit rose to INR 10,235 million, up 30% year-over-year.

• EBITDA grew 26% year-over-year to INR 13,876 million; EBITDA margin improved to 26.3% from 24.5% in Q3 FY24.

• Adjusted EBITDA margin (excluding non-recurring expenses) stood at 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 in meeting growth and profitability aspirations for FY25, with expectations of high single-digit growth in the U.S. for FY26.

• Continued focus on innovation, portfolio expansion, and execution excellence to sustain momentum.

• Anticipates further growth from new launches and expansion in key geographies and therapy areas.

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