Zydus Lifesciences profit drops 26.6% despite strong revenue growth

Zydus Lifesciences on Wednesday disclosed a 26.6 per cent year-on-year contraction in consolidated net profit to ₹925.5 crore for the quarter ended September 30, attributing the decline to substantially higher expenses during the period.

The company's revenue from operations, however, expanded significantly to ₹7,909.6 crore, up from ₹6,123.2 crore in the corresponding quarter of the previous fiscal year. Total operating expenses surged sharply to ₹6,806.6 crore during the quarter from ₹4,509 crore in the same period last year, according to regulatory filings submitted to stock exchanges.

The pharmaceutical segment accounted for 83 per cent of Zydus' total sales during the quarter. The company's India formulations business generated revenues of ₹1,884.4 crore, representing an 18 per cent increase year-on-year, while its North America formulations division recorded revenues of ₹3,314.5 crore, up 21 per cent. Growth in the North America business was driven by sustained volume expansion in the company's base business portfolio.

The results underscore the challenge facing India's pharmaceutical manufacturers in maintaining profitability amid scaling operations and managing cost pressures in key markets.