Zydus Strengthens Investment in Vaccines and Medtech Sectors

The chief executive of Zydus Lifesciences Ltd announced plans to expand their vaccines and medtech offerings throughout the coming years during Tuesday evening's investor call.

The company announced its Q4FY25 results on the same day and expects to achieve double-digit Zydus earnings growth in FY26 through strong domestic and international market performance and expansion in its biologics, vaccines, and Zydus medtech business areas.

Managing Director Sharvil Patel explained to investors that robust growth in India and global markets combined with the expansion of biologics and Zydus vaccines drove their performance.

The business forecasts better-than-average performance in the Indian pharmaceutical market for FY26 while maintaining single-digit US market growth expectations. The company management has set a target Ebitda margin of approximately 26% for FY26.

Zydus achieved its maximum operating profit alongside highest margins throughout Zydus FY25 results. The company's total revenue increased by 19% compared to the previous year to reach ₹23,241.5 crore while maintaining an Ebitda margin of 30.4%.

Vaccines push

Patel expressed strong confidence in both the future direction of the business and vaccine opportunities.

Zydus kicked off development of the first worldwide combination vaccine targeting shigellosis and typhoid during FY25 with support from the Gates Foundation vaccine. The company will undertake initial development phases along with animal immunogenicity assessments and preclinical toxicity research for the combination vaccine.

Patel states Zydus’ vaccine strategy covers three essential areas. The business operations in India demonstrate strong performance while the company anticipates becoming a major player in forthcoming public bids.

Our company stands as a key competitor for the newly available MR (Measles Rubella) vaccine public tenders which we believe will become an essential MR vaccine source for Zydus in the next year.

The business experiences demand from multiple international organizations. Our company expects to qualify to bid on various upcoming tenders. Patel stated that these opportunities could provide additional business chances with UNICEF and PAHO in the years ahead.