Shares Gain Momentum Following Q3 Results
Zydus Lifesciences witnessed a positive shift in its share price following the announcement of its third-quarter financial results for FY25. Despite a slow start on the day of the results, the company’s shares gained over 2% in early market trading on February 6. At 9:45 AM, the stock was priced at Rs 997, reflecting a 2.05% increase. The strong market response comes after the pharmaceutical company reported a significant 30% jump in its consolidated net profit, reaching Rs 1,023 crore. The growth was primarily driven by robust sales across domestic and US markets, reinforcing investor confidence.
Revenue and Profitability Surge
In comparison to the same quarter last year, when Zydus Lifesciences posted a net profit of Rs 789 crore, the latest figures highlight the company’s sustained upward trajectory. Revenue from operations stood at Rs 5,269 crore for the quarter, marking a 17% rise from Rs 4,505 crore recorded in Q3FY24.
Commenting on the performance, Managing Director Sharvil Patel emphasized the company’s commitment to achieving double-digit growth and enhancing profitability. “We are pleased with the sustained growth momentum across our businesses, which keeps us on track to achieve our fiscal 2025 goals,” she stated. Patel further credited the company’s success to strong portfolio execution in the US, increasing market share in key therapy segments in India, and strategic expansion in international markets.
Operational Efficiency and Forex Gains Drive Performance
Zydus Lifesciences also demonstrated strong operational efficiency, reflected in its Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA). For the quarter, EBITDA reached Rs 1,387 crore, up from Rs 1,102 crore in the corresponding period of the previous year. The EBITDA margin expanded by approximately 200 basis points, improving from 24.5% to 26.3%.
A key contributor to the company’s profit surge was the notable increase in forex gains, which rose to Rs 183 crore compared to Rs 21 crore in the same quarter last year. This substantial growth in forex gains provided an additional boost to overall profitability.
With a strong financial performance and a clear growth strategy, Zydus Lifesciences is well-positioned for continued expansion. Analysts and investors remain optimistic about the company’s future prospects, given its strategic market positioning and consistent execution across key segments.
