Zydus Reports High-Teen Revenue Growth Driven by Accelerating Demand for Specialty and Biosimilars Products

Zydus Lifesciences Guides for Sustained Growth and Stable Margins

Ahmedabad-based pharmaceutical company Zydus Lifesciences has outlined a strategy for sustained, high-teens revenue growth and stable margins in the current fiscal year, driven by a pivot towards specialty therapies, biosimilars, and innovation-led businesses.

The company's management expects to carry forward the momentum from the previous fiscal year, which ended on a strong note with a revenue growth of 16.8 percent at Rs 27,148.4 crore. The earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 20.1 percent to Rs 8,475 crore, with margins expanding 80 basis points to 31.2 percent. The net profit also saw a 15 percent increase to Rs 5,456.4 crore.

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Zydus is guiding for EBITDA margins above 24 percent, even as it absorbs higher competitive intensity and increased investments tied to new launches and specialty expansion. The company is building three structural growth engines - specialty and rare disease therapies through its Sentinel platform; complex generics and 505(b)(2) products that offer faster scaling and biosimilars and biologics targeting global markets.

The company is also deepening its innovation pipeline, with R&D spending expected to remain at about 8 percent of revenue, increasingly directed toward new chemical entities (NCEs), biologics, and advanced therapies. In biosimilars, management sees a multi-year runway, with global launches and partnerships expected to drive meaningful scale over the next three years and a more material contribution by FY29-30.

Zydus is also pursuing inorganic growth through acquisitions, with its proposed acquisition of Illinois-based Assertio aimed at building a high-margin specialty oncology platform. The company expects to drive growth through multiple levers, including the expansion of its 505(b)(2) pipeline, rare disease portfolio, and biologics capabilities.

The company's management expects India to continue to outperform the market, while international markets and consumer wellness sustain strong double-digit growth. North America is expected to deliver steady single-digit gains despite a high base.

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With strong export exposure, Zydus expects currency movements to support earnings. The company remains comfortable with leverage of up to one times net debt-to-EBITDA, leaving room for continued investments and acquisitions alongside capital returns, including its recently announced buyback and dividend.

At the time of writing, the Zydus stock was trading at Rs 1,057.50 on the National Stock Exchange, up 3.79 percent from the previous close.