Ahmedabad-based pharmaceutical major Zydus Lifesciences released its financial results for the fourth quarter of the financial year 2025 (Q4FY25) on Tuesday, showcasing a robust operational performance despite facing headwinds from an exceptional charge related to its Brazil operations. The company’s net profit slipped marginally by 1 per cent year-on-year (Y-o-Y) to ₹1,244 crore, primarily due to a goodwill impairment of ₹219.6 crore in its Brazil business. However, after adjusting for this charge, the adjusted net profit surged by 17.6 per cent Y-o-Y to ₹1,390 crore, indicating healthy underlying profitability.
Solid Revenue Growth Across Segments
Zydus Lifesciences delivered impressive top-line growth during the quarter. Revenue from operations climbed 17.2 per cent Y-o-Y to ₹6,290 crore. Sequentially, revenues grew by 23 per cent, reinforcing the company’s strong execution capabilities and demand momentum. Profit after tax (PAT) also saw a sequential increase of 14 per cent.
For the full financial year FY25, the company reported a consolidated net profit of ₹4,734.4 crore, marking a 17.2 per cent growth over FY24. Full-year revenue from operations stood at ₹18,870.3 crore, a 14.1 per cent increase from the previous year.
Despite the robust financial performance, the company’s stock fell by 3.14 per cent on Tuesday, closing at ₹882.75 on the BSE. The results, announced during market hours, likely triggered investor caution due to the exceptional charge and net profit decline.
Indian Market: Consistent Growth Driven by Chronic and Wellness Portfolios
Zydus’ Indian business—covering both Pharmaceutical Formulations and Consumer Wellness—contributed 39 per cent to consolidated revenue in Q4FY25. This segment earned ₹2,447.5 crore in the quarter, reflecting a 13 per cent Y-o-Y growth.
Pharmaceutical Formulations
The Formulations business earned ₹1,539.4 crore, growing 11 per cent Y-o-Y. This division accounted for 25 per cent of consolidated revenues. The growth came primarily from the branded generics business, which registered 11 per cent Y-o-Y growth. Strong uptake in flagship brands and innovative product offerings propelled this performance.
Secondary sales rose 10 per cent, driven by strength in chronic therapies, including cardiovascular, anti-diabetic, and neuro-psychiatric segments. The chronic portfolio represented 43 per cent of the domestic business as of March 2025, showing a notable 400 basis point gain over three years. IQVIA MAT March 2025 data supported this upward trend.
Consumer Wellness
The Consumer Wellness segment earned ₹908.1 crore during Q4FY25, reflecting a 17 per cent Y-o-Y increase, bolstered by a 13 per cent rise in volume sales. This segment contributed 14 per cent to consolidated revenue.
Zydus’ personal care portfolio—featuring prominent brands like Nycil and EverYuth—performed exceptionally well and maintained double-digit growth. Meanwhile, the food and nutrition segment also recorded healthy double-digit growth, supported by category expansion and product innovation. The strategic acquisition of Naturell (India), owner of healthy snack brands such as Max Protein and Rite Bite, significantly enhanced the company’s product mix and consumer outreach.
US Market: Robust Performance and Pipeline Expansion
The US formulations business emerged as the largest contributor, generating ₹3,130.7 crore in revenue during Q4FY25. This represents a 24 per cent Y-o-Y growth, contributing 50 per cent to the total consolidated revenue.
Zydus launched five new products in the US market during the quarter, reflecting a sustained focus on portfolio enhancement. Additionally, the company filed three Abbreviated New Drug Applications (ANDAs) and secured approvals for six products, further strengthening its pipeline for future launches.
This performance in the US business underscores Zydus’ ability to efficiently manage pricing pressures, supply chain dynamics, and regulatory pathways in its most competitive market.
International Formulations: Healthy Geographic Diversification
Outside India and the US, Zydus’ international formulations business earned ₹554.7 crore in Q4FY25, reflecting a 12 per cent Y-o-Y increase. This segment contributed 9 per cent to consolidated revenues. The consistent performance across global markets demonstrates Zydus’ capability to diversify its revenue base and capitalize on regional growth opportunities.
The international markets continued to show strong demand, particularly in regions where the company has built a stable presence. The company sustained growth momentum through focused market penetration strategies and localized product offerings.
API Segment: Under Pressure
The Active Pharmaceutical Ingredients (API) segment reported revenue of ₹129 crore during Q4FY25, reflecting a 10 per cent decline Y-o-Y. This segment now contributes 2 per cent to consolidated revenue. The decline came as a result of pricing pressures and regulatory challenges in certain markets.
Although the segment witnessed a dip, Zydus continues to focus on optimizing its manufacturing efficiency and scaling up complex API production to address future demand.
Management Commentary and Strategic Vision
Sharvil Patel, Managing Director of Zydus Lifesciences, highlighted the company’s forward-looking approach. “We made meaningful progress in our differentiated pipeline and added new capabilities to ensure sustainable growth. We look forward to continued execution success and deepening strategic partnerships to drive long-term growth,” he stated.
The company remains committed to innovation-led growth, particularly in areas of complex generics, biologics, and specialty therapies. Sharvil Patel’s statement reflects a clear strategic pivot toward building a pipeline of future-ready therapies that meet evolving patient needs across global markets.
Outlook: Strong Fundamentals with Strategic Focus
Zydus Lifesciences ended FY25 with strong financials, a healthy product pipeline, and expanded geographical reach. While the Q4 net profit decline—largely due to a one-off exceptional charge—may have created temporary concerns for investors, the underlying performance remains sound and growth-oriented.
The company’s focus on chronic therapies in India, expansion in consumer wellness, aggressive US market penetration, and continued product filings reinforce its capability to scale sustainably in the coming years.
Going forward, investors and market watchers will likely keep a close eye on:
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Further pipeline developments in the US and EU markets
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Revenue contributions from the newly acquired Naturell and innovation-driven consumer products
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Expansion in chronic therapies and branded generics in India
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Margin performance amid input cost and pricing volatility in APIs and generics
Conclusion
Zydus Lifesciences reported a strong operational quarter despite the headline net profit being impacted by a one-time goodwill impairment. With consistent revenue growth across all major business segments, the company showcased its resilience and operational strength. Strategic moves in the wellness and nutrition spaces, along with a robust product pipeline for international markets, highlight its readiness to scale in FY26.
Zydus remains a key player in India’s pharmaceutical landscape, continuously evolving through innovation, market responsiveness, and patient-centric approaches. The focus on differentiated assets, expanding therapeutic areas, and global reach positions it well for sustainable long-term growth.
