Indian drugmaker Zydus Life`s first-quarter profit beats estimates on new US drug launches
Indian drugmaker Zydus Lifesciences reported first-quarter profit above estimates on Tuesday, driven by new drug launches in the U.S., its biggest market.
The company posted a 3.3% rise in consolidated net profit to 14.67 billion rupees ($167.4 million) for the quarter ended June 30, beating analysts' estimates of 13.25 billion rupees, per data compiled by LSEG.
Overall revenue climbed nearly 6%, led by a 3% sales growth in the U.S. and a 6% jump in India.
KEY CONTEXT
Most Indian generic drugmakers, including Zydus Life, which earn a large share of their revenue from the U.S., have been grappling with weak pricing due to intense competition.
However, new products, particularly in the specialty portfolio, have driven Zydus Life's growth in the United States since the beginning of 2025, with three launches in the reported quarter.
In contrast, its peers Cipla and Dr Reddy's posted subdued U.S. sales during the period.
PEER COMPARISON
Estimates (next Analysts' sentiment
12 months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating* analysts price yield
(%) (%) target** (%)
Zydus Lifesciences 21.28 13.90 6.68 -5.12 Hold 26 0.95 1.18
Ltd
Alembic 24.27 15.01 10.42 24.92 Buy 10 0.94 1.16
Pharmaceuticals
Ltd
Cipla Ltd 23.73 15.17 6.59 -0.66 Buy 35 0.88 0.87
Dr Reddy's 18.98 12.01 3.94 -6.87 Hold 37 0.92 0.67
Laboratories Ltd
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 87.6262 Indian rupees
