Zydus Lifesciences Ltd is gearing up to expand its vaccines and medtech portfolio significantly over the next few years, Managing Director Sharvil Patel told investors during the company’s Q4FY25 earnings call. The drugmaker, which posted its highest-ever operating profit and margins for FY25, expects double-digit revenue growth in FY26, led by strong performance across domestic and international markets, as well as in newer segments like biologics, vaccines, and medtech.
Zydus reported a 19% year-on-year increase in consolidated revenue to ₹23,241.5 crore in FY25, with an Ebitda margin of 30.4%. For FY26, the company is guiding for an Ebitda margin of around 26%, projecting to outperform the Indian pharmaceutical market and maintain high single-digit growth in the US.
A key focus area is vaccines. Patel expressed optimism about the company’s vaccine pipeline, which includes the development of the world’s first combination vaccine for shigellosis and typhoid, supported by the Gates Foundation. Zydus also received regulatory approval to begin Phase 2 trials for its bivalent Typhoid Conjugate Vaccine (TCV). The company is eyeing both domestic public tenders and international opportunities through WHO-prequalified markets and agencies like UNICEF and PAHO.
Zydus is actively pursuing India’s MR (Measles-Rubella) vaccine tenders and sees strong potential in non-tender vaccine sales. It is currently selling high volumes of flu and rabies vaccines and is planning product registrations in new markets, including Egypt.
In the medtech space, Zydus made a significant move with the acquisition of a majority stake in French orthopedic firm Amplitude Surgical SA. It is also building capabilities in nephrology and cardiovascular devices. Patel highlighted that some medtech ventures are already profitable, and the company aims to scale this segment over the next three years through both organic growth and further acquisitions.
In the US, Zydus anticipates high single-digit growth despite challenges from waning sales of key generics like Revlimid and Asacol HD. With a strong base business exceeding $1 billion and 14–15 major launches lined up for FY27, the company remains confident. Zydus is also exploring local manufacturing options in response to potential US import tariffs, aligning with its broader strategy to invest in specialty and other growth areas.