Zydus Lifesciences Ltd. has announced its consolidated financial results for the third quarter (Q3) and nine months (9M) ending December 31, 2024.

The company reported strong financial performance driven by sustained momentum across key business segments.

Zydus Lifesciences recorded revenue from operations at INR 52,691 million, marking a 17 percent increase year-over-year. Research & Development (R&D) investments were INR 5,031 million, accounting for 9.5 percent of total revenue.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at INR 13,876 million, reflecting a 26 percent growth from the previous year. The EBITDA margin improved to 26.3 percent, an increase of 180 basis points (bps). Net Profit surged 30 percent to INR 10,235 million, while organic capital expenditure (Capex) for the quarter was INR 2,907 million.

For the nine-month period ending December 2024, revenue from operations reached INR 167,136 million, showing a 19 percent increase year-over-year. R&D investments totaled INR 13,756 million, representing 8.2 percent of revenues. EBITDA rose by 31 percent to INR 49,330 million, with an improved EBITDA margin of 29.5 percent, up by 270 bps.

Net Profit stood at INR 33,546 million, reflecting a 25 percent year-over-year growth. Organic Capex for the first nine months amounted to INR 8,938 million. The Net Debt to Equity ratio was recorded at -0.14x, and Net Debt to EBITDA stood at -0.47x, indicating a strong financial position. The company reported a Net Cash (negative Net Debt) position of INR 30,916 million as of December 31, 2024.

The India business accounted for 38 percent of consolidated revenue, registering INR 19,470 million, reflecting a 7 percent year-over-year growth. The formulations segment contributed INR 14,982 million, growing by 5 percent, driven by an 8 percent increase in secondary sales. The chronic therapy portfolio saw significant expansion, leading market gains in cardiology, respiratory, and oncology. The Consumer Wellness segment generated INR 4,488 million in revenue, marking a 13 percent increase, with strong demand in personal care and nutrition products.

The US formulations segment, which contributed to 47 percent of consolidated revenue, saw a revenue surge of 31 percent year-over-year to INR 24,096 million (USD 285 million in constant currency). The company filed 10 Abbreviated New Drug Applications (ANDAs) and received approvals for three new products. Five new products were launched, including the Sitagliptin franchise brands Zituvio™, Zituvimet™, and Zituvimet™ XR. Additionally, an agreement was signed with CVS Caremark for the inclusion of Sitagliptin brands in its formulary, effective January 1, 2025.

The international formulations business reported revenues of INR 5,702 million, marking a 16 percent growth year-over-year, driven by strong demand in emerging markets. The Active Pharmaceutical Ingredients (API) business generated INR 1,703 million, reflecting a 19 percent growth. The Alliances & Others segment recorded INR 264 million in revenue, a 33 percent decline from the previous year.

In terms of innovation and research, Zydus Lifesciences received USFDA approval for Phase II(b) clinical trials of Usnoflast for Amyotrophic Lateral Sclerosis (ALS). The drug was also granted Orphan Drug Designation (ODD). The company completed Phase III trials for a biosimilar and filed for Phase III trials of a biosimilar Antibody Drug Conjugate (ADC). The Vaccines R&D division successfully completed Phase I clinical trials for the Bivalent Typhoid Conjugate Vaccine (TCV). Additionally, the USFDA granted priority review to CUTX101, a copper histidinate product candidate for Menkes disease.

Dr. Sharvil Patel, Managing Director of Zydus Lifesciences, expressed confidence in the company’s trajectory, stating, “We are pleased with our operational performance despite geopolitical and supply chain challenges. Our strategic initiatives in the US, market share gains in India, and a strong pipeline position us well for sustainable growth. We remain committed to innovation and patient-centricity, ensuring quality remains at the core of our operations.”