Feb 9 (Reuters) – Indian drugmaker Zydus Lifesciences Ltd reported a third-quarter profit above estimates on Monday, underpinned by new drug launches in North America, its biggest market.
The company posted a consolidated profit of 10.42 billion rupees ($115.1 million) for the quarter ended December 31, up from 10.24 billion rupees in the year-ago period.
Analysts, on average, had projected profit to drop to 9.32 billion rupees, as per LSEG-compiled data.
Overall revenue climbed 30.3%, driven by a 16.4% growth in North American sales and nearly a 13% jump in India sales.
KEY CONTEXT
Most Indian generic drugmakers, including Zydus Life, derive a significant portion of their revenue from the U.S. market but have been grappling with weak pricing due to intense competition.
New drug launches, particularly in Zydus’ specialty portfolio, have lifted growth in the United States since early 2025. The company launched four more products in the reported quarter.
Meanwhile, Zydus’ peers Cipla and Dr Reddy’s reported subdued U.S. sales during the quarter.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC EV/EBITD Revenue Profit Mean # of Stock to price Div yield
A growth (%) growth (%) rating* analysts target** (%)
Zydus Lifesciences Ltd 14.34 7.15 -10.25 Hold 29 0.88 1.24
Alembic Pharmaceuticals 12.31 10.68 22.55 Buy 11 0.81 1.38
Ltd
Dr Reddy’s Laboratories 13.22 3.29 -10.23 Hold 39 0.93 0.64
Ltd
Cipla Ltd 15.09 7.85 0.62 Hold 37 0.91 0.98
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER TO DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 90.5590 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)
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