Zydus Lifesciences shares rallied more than 4% after the company reported a solid year-on-year performance for the third quarter ended December 31, 2025. The upbeat market reaction came on the back of strong revenue growth, stable profitability, and sustained momentum across key domestic and international markets.

For Q3 FY26, Zydus Lifesciences posted revenue from operations of ₹6,864.5 crore, registering a robust growth of 30.3% compared with ₹5,269.1 crore in the same quarter last year. The sharp rise in revenue was driven by higher product sales volumes, improved demand across major therapeutic segments, and better market traction in both India and overseas geographies.

Total income for the quarter stood at ₹6,975.9 crore, up 30.9% year-on-year from ₹5,326.6 crore in Q3 FY25. The growth in total income reflects strong operational performance along with stable contributions from other income.

On the expenditure side, total expenses increased to ₹5,537.6 crore in Q3 FY26 from ₹4,142.5 crore a year ago, marking a 33.7% YoY rise. The increase was largely attributed to higher raw material costs, employee benefit expenses, and other operating costs associated with expanded business activity and higher sales volumes.

Despite the rise in expenses, profit before tax and share of profit from joint ventures improved to ₹1,353.4 crore, up 14.3% YoY from ₹1,184.1 crore reported in the corresponding quarter last year. This growth highlights the company’s ability to maintain operational strength amid cost pressures.

Net profit from continuing operations for the December quarter came in at ₹1,042.1 crore, slightly higher by 1.8% compared with ₹1,023.8 crore in Q3 FY25.