Zydus Lifesciences Q3 net profit rises 9% on strong US and India growth

Zydus Lifesciences posted higher Q3 profit and revenue, aided by strong growth in the US and India businesses, improved margins, and steady momentum in generics, specialty and chronic segments

Ahmedabad-based Zydus Lifesciences posted a 9 per cent year-on-year jump in adjusted net profit for Q3 FY26 to ₹1,110 crore, while its revenue from operations jumped 30 per cent to ₹6,864.5 crore.

 

The company said the net profit was adjusted for an exceptional expense of ₹84.9 crore in Q3 FY26, being the one-time impact of an increase in gratuity and leave encashment liability pursuant to the new labour code enacted by the government, and ₹34.2 crore in acquisition-related costs in Q2 FY26, including the tax impact.

 

Ebitda for the quarter stood at ₹1,816.4 crore, up 31 per cent, with the Ebitda margin at 26.5 per cent, an improvement of 20 basis points. The company incurred capital expenditure of ₹463 crore in Q3.

 

 

Sharvil Patel, managing director of Zydus Lifesciences, said: “Our disciplined M&A and business development strategy is translating into tangible results, laying a strong foundation for sustained value creation.”

 

The India formulations business posted 13 per cent growth during the quarter, while North America formulations were up 16.4 per cent.

 

The domestic business posted revenues of ₹1,709 crore and accounted for 25 per cent of consolidated revenues. The branded business grew faster than the market with 14 per cent year-on-year growth, and the chronic segment continued to grow at a faster pace, driving overall business growth. The share of the chronic portfolio has increased consistently over the last several years and stood at 45.3 per cent, an improvement of 560 basis points over the last three years (source: IQVIA MAT December 2025 data).

 

North America business revenue came in at ₹2,804 crore, up 16 per cent year-on-year and 2 per cent quarter-on-quarter, and accounted for 41 per cent of consolidated revenues. In the US generics space, Zydus launched four new products, filed 18 ANDAs, and received approvals for eight ANDAs, including four tentative approvals, during the quarter. On the US specialty front, the company launched Beizray, its first oncology 505(b)(2) product, strengthening its specialty portfolio.

 

On the orphan and rare disease front in the US, the company recently, in January 2026, received US Food and Drug Administration approval for Zycubo (copper histidinate). Zycubo is the first and only approved therapy for the treatment of Menkes disease, an ultra-rare condition. In the US bio CDMO space, Zydus completed the acquisition of two biologics manufacturing facilities in California from Agenus Inc. In Canada, it filed five ANDSs, received four approvals and launched one new product during the quarter.