Zydus Lifesciences Q1 profit slides 36 pc to Rs 940 crore
Mumbai, Aug 11
Zydus Lifesciences on Tuesday reported a 36 per cent year-on-year decline in its consolidated net profit for the first quarter of the current financial year.
The Ahmedabad-based drugmaker said its net profit fell 35.9 per cent year-on-year to Rs 940 crore in the June quarter, compared with Rs 1,467 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
The pharmaceutical major's revenue from operations rose 22 per cent to Rs 8,017 crore during the quarter, up from Rs 6,574 crore a year ago.
However, profitability came under pressure. Earnings before interest, taxes, depreciation and amortisation (EBITDA) slipped 7.6 per cent to Rs 1,930 crore from Rs 2,089 crore in the year-ago period.
Consequently, the EBITDA margin contracted significantly to 24.1 per cent from 31.8 per cent in the corresponding quarter of the previous financial year.
Despite the weaker earnings performance, investors appeared largely unfazed. Following the results announcement, shares of Zydus Lifesciences were trading at Rs 1,126, up 0.63 per cent, or Rs 7, from the previous close.
The stock has delivered mixed performance across different time frames. Over the past five trading sessions, it gained 1.41 per cent, or Rs 15.70.
On a one-month basis, however, the stock was down 0.52 per cent, or Rs 5.90. Over the last six months, Zydus shares have rallied 25.43 per cent, adding Rs 228.40 in value.
On a year-to-date basis, the stock has risen 23.20 per cent, or Rs 212.25.
Zydus Lifesciences, formerly known as Cadila Healthcare, is one of India's leading pharmaceutical companies.
Founded in 1952 and headquartered in Ahmedabad, the company rebranded itself as Zydus Lifesciences in 2022.
Led by Chairman Pankaj R. Patel, the company has a presence in more than 50 countries and operates over 30 manufacturing facilities worldwide.
The company has a diversified business spanning generic medicines, active pharmaceutical ingredients (APIs), vaccines, biosimilars and specialty products.
Through its subsidiary Zydus Wellness, it also owns several consumer brands including Glucon-D, Sugar Free, Complan, Nycil and Everyuth.
— IANS
Reader Comments
Ahmedabad-based company doing well globally. Pankaj Patel sir has built a solid empire. The margin contraction is a concern, but their consumer brands like Complan and Glucon-D are household names in India. Holding my shares for the long run. 🇮🇳
Interesting to see Indian pharma companies navigating global markets. This kind of quarterly volatility is common in pharma due to product mix and regulatory costs. The 22% revenue growth shows solid demand. Zydus's diversified portfolio keeps them resilient.
Share price up 0.63% despite lower profit - market is mature. They know this is temporary. Zydus is doing great work in vaccines and specialty products. Need to look at the bigger picture rather than panic over one quarter. 👏
36% profit drop is significant, but the EBITDA margin at 24.1% still shows healthy operations. The stock's 25% six-month rally suggests investor confidence. Zydus is clearly investing for future growth, which might eat into short-term profits.
From Cadila to Zydus, this company has come a long way. Their biosimilar pipeline is impressive. But 36% profit fall is concerning - hope they aren't facing pricing pressure in US markets. Still, 22% revenue growth shows top-line is strong.
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