Zydus Lifesciences Ltd (NSE: ZYDUSLIFE) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Ganesh N. Nayak — Director
Dr.Sharvil P. Patel — Managing Director
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, good day and welcome to Zidus Life Sciences Limited Quarter 3 FY26 Earnings Call. Please note this call is being recorded. I now hand over the call to Mr. Ganesh Nayak for opening remarks. Thank you. And over to you sir.
Ganesh N. Nayak — Director
Good morning ladies and gentlemen. It’s my pleasure to welcome you all to our post results Teleconference for the third quarter ended December 31, 2025. For today’s call we have with us Dr. Sharville Patel, Managing Director, Mr. Trishar Shroff, Chief Financial Officer, Mr. Arvind Bhotra, Head of the Investor Relations and Mr. Alok Garg from the Managing Director’s office. Let me talk about the key developments during the quarter. I’m happy to inform you that we ended the calendar year with a strong double digit growth and operating profitability. All our key businesses contributed to the performance during the quarter.
Let me take you through the financial performance for the quarter gone by. We registered consolidated revenues of Rs. 68.6 billion, up 30% on a year. On year basis. Excluding acquisitions too, the base sustained double digit growth with all key businesses delivering ahead of expectations. EBITDA for the quarter stood at 18.2 billion rupees up 31% on a year. On year basis, our operating profitability continued to remain strong with an EBITDA margin of 26.5% during the quarter, up 20 basis points on a year. On year basis, EBITDA margin on for the first nine months of fiscal stood at 30.3%.
Net profit for the quarter adjusted for the exceptional expense on account of the new labor code impact and acquisition related cost was up 11.1 billion rupees, up 9% year on year. Now let me take you through the operating highlights for the third quarter of FY26 for our key business segments. In the pharmaceutical space, North America Business comprising of the United States and Canada registered revenues of 28 billion rupees during the quarter, up 16% year on year. The base US business continued to grow driven by sustained volume expansion and new products launched over the last 12 months.
On the US generics front, we filed 18 NDAs and received 8 approvals and launched 4 new products during the quarter. On the US specialty front, we launched Bizray Albumin solubilized docetaxel injection, our first Oncology 505 V2 product, further strengthening our specialty portfolio. On the orphan and rare disease front, in January 2026 we received final approval from the US FDA for Zicubo Copper Histidinate and with this approval Zycubo has become the first and only therapy approved for the treatment of Menke’s disease which is an ultra rare disease. We now have three rare disease products being marketed by Sentinel in Canada.
We filed five ands, received four approvals and launched one new product during the quarter in India. Our branded formulations business sustained its growth trajectory with a robust 14% year on year growth, outperforming the market growth for yet another quarter. The growth was driven by persistent traction in innovation products and pillar brands. Chronic segment continued to grow at a faster pace driving the overall growth of the business in terms of therapy performance. The business grew faster than the market in key therapies of cardiology, respiratory, dermatology, pain management and in the super speciality areas of oncology and nephrology.
On the super speciality front, we continued to retain leadership position in the oncology therapy. Contribution of chronic portfolio has increased consistently over the last several years and stood at 45.3% as per IQA MAT December 2025, an improvement of 560 basis points over the last three years. During the quarter we expanded our presence in the diagnostics area through a strategic collaboration with Myriad Genetics of the US introducing three advanced tests namely My Choice, My Risk and and Prolaris and thereby strengthening the country’s precision oncology ecosystem. International Markets Formulation Business further accelerated its growth trajectory and posted revenues of 7.9 billion rupees with a strong year on year growth of 38%.
The growth was strong, broad based with a demand driven performance in both emerging markets and Europe focused by supported by focused execution on a YTT basis as well, the business delivered 38% growth on our consumer wellness business. We recorded revenues of 9.6 billion rupees up 113% year on year with full quarter of consolidation of Comfort Click business in this quarter. Excluding the impact of the recently acquired Comfort Click, the business delivered double digit volume growth during the quarter reflecting the underlying demand momentum. Comfort Click portfolio that was acquired this year continued to perform in line with expectations.
The Comfort Click business deepened its portfolio with the launch of four adult gummy variants, one Probiotic gummy variant for the kids, one Pure and Himalayan Silajit resin, reinforcing its position in high growth wellness categories. Additionally, the Weight World brand advanced its European expansion by entering Poland, Finland and Portugal, strengthening Comfort Click’s regional footprint and unlocking access to to fast growing wellness markets. In the medical devices space. The business performed registered revenues of 3 billion rupees. This was the first full quarter consolidation of our Amplitude surgical business. On the operations front, our injectable manufacturing facility located at Jarod received the EIR with Voluntary Action Indicated status from the United US FDA post the inspection conducted in September 2025.
Our Oral Solid Dosage Formulations facility located in Ahmedabad SCZ2 received EIR with no action Indicated status post the pre approval inspection conducted in August 2025. This concludes the business review. I would now request Dr. Sharul Patel to take you through the key drivers across businesses as well as initiatives in our Innovation Program. Thank you.
Dr.Sharvil P. Patel — Managing Director
Thank you Mr. Naik and good morning ladies and gentlemen. I’m pleased to report that our core strategic pillars are delivering as intended. Our focus on supply chain resilience and stringent execution has allowed us to navigate market complexities effectively. 2025 was a remarkable year for us characterized by exceptional top line growth and healthy profitability. Our disciplined M and A and business development strategy has complemented existing businesses well and activated new growth engines that are already delivering tangible impact. Building on the seamless integration of licmeds and nipl which is the Right Bite Max Protein, our recent acquisition of Amplitude Comfort Click licensing of biosimilars and our strategic biologic facilities will serve us as key of sustained long term growth for the business.
We continue to evolve our business model to go beyond the pill, prioritizing patient centric outcomes through sustained R and D investments. This focus is not just about better healthcare, it’s about creating superior value for everyone who has a stake in our success in the US Our generic foundation is stronger than ever anchored by a diverse portfolio of internal and partnered products. As we pivot to specialty, we are well positioned to drive further growth. We have identified and engaged key levers to expand our footprint ensuring we bring highly differentiated high impact therapies to the market. This includes the 552 pipeline of products developed in house as well as through partnerships leveraging liqmed’s portfolio and broadening access to three pediatric disease products by Sentinel in the US Biosimilar space.
We have attained a critical milestone with the licensing of two large molecules, Pembrolizumab and Ranibizumab. We shall leverage the recently acquired Biologics manufacturing facility in the US to accelerate our proprietary pipeline while maximizing capacity utilization through a continued supply of Bot VAL to agens and the onboarding of new partners. Looking ahead, we are particularly optimistic about the upcoming NDA filing for our molecule Saroglitisa in the US Market. This is a pivotal milestone not only catalyze our next phase of growth but also solidifies ide’s position and as an innovation driven leader in the specialty pharmaceutical space.
Turning to our India formulations business, our branded portfolio has consistently outperformed the market for now several quarters. We are facilitating this momentum by sharpening our focus on our core therapeutic areas. Our commitment to patient centric innovation has yielded a robust pipeline of novel differentiated products that not only address significant unmet needs but also serve as a foundation for sustained long term value creation on international markets formulations business spanning both emerging markets. In Europe it has delivered strong double digit growth over the past several quarters. In emerging markets we are driving growth through a therapy led approach, tailoring offerings to local needs and building a more agile market responsive portfolio.
Whereas in Europe our priority is to broaden our portfolio offerings and strengthen our market coverage. Our strategy for consumer wellness is centered on making wellness a natural extension of the consumer’s journey. The acquisition of Comfort Click has uniquely positioned us with strong presence in both India and Europe’s developed market, enhancing diversification and growth potential. With the addition of Comfort Clique we have reached a critical inflection point. This move not only expands our global footprint but also secures a leadership position in the. Rapidly evolving digital health landscape wellness platform framework designed to deliver superior long term returns.
On the MedTech front, we received an important milestone with the CE Mark approval for our proprietary Andy Robotic Surgical system. This confirms its compliance with the European standards for safety, performance and quality. With this, let me share some material developments on our innovation efforts during the quarter. On the NCE front, as I mentioned, we plan to file Saroglitazar Magnesium with the US FDA for PBC indication. In the Biotech RD space, we received regulatory approval in India to initiate phase 3 clinical trials of a second biosimilar ADC. On the vaccines front, we initiated a phase 2 trial for bivalent typhoid conjugate vaccine in India and on our global vaccine strategy is now playing out as recently we have been awarded the tender to supply rabies vaccine to PAHO for Latin American countries and the typhoid conjugate vaccine to UNICEF for low and middle income countries.
On the 552 front, we have entered into an exclusive licensing and commercialization agreement for novel sterile 555B2 product in the area of supportive oncology care and the NDA for the product is expected to be filed with the US FDA in 2026. This will allow us to have a second launch in the supportive Encore space after BZ rate. Thank you and now we can start with the Q And a session over to the coordinator for the Q and A.
Questions and Answers:
operator
Thank you sir. We will now open the call for Q and A session. We will wait for a few minutes until the queue assembles. We request participants to restrict to two questions and then return to the queue for more questions. Please raise your hand from the participant tab on the screen for asking the question. The first question is from Neha Manpuria.
Unidentified Participant
Thanks for taking my question. My first question is on the agendas deal. Now that we’ve completed the acquisition of the asset. As I mentioned in your opening remarks that the you know, initially there’ll be supplier bought valve, you know, before we start onboarding customers in true sense, when should we start assuming revenue from you know, the CDMO business? You know, would it be, you know, FY27, the latter half, FY28 or could it take some more time and you know, let’s say over a three, four year period, you know, how big can you know, the CDMO business be for us? Androgenous.
Dr.Sharvil P. Patel
Yeah. Thank you Neha. So I think our we will see the commercialization start from the second half of FY27 when we start supplying what Bell. In the meantime we are obviously getting the facilities qualified. And we are going to add development. So but I would say the commercialization will be second half of FY27 in terms of scaling up of the CDMO business. It, it will take at least two to three years. Obviously one milestone will be the how what Bell moves forward in his clinical and regulatory journey and we are quite opt optimistic with the traction it is seeing in Europe and also the trial how they’re moving and then obviously further addition of new CDMO business.
So in the next two to three years we would say we would have a meaningful bio CDMO business.
Unidentified Participant
Are we quantifying sir what this meaningful would be? I mean would it be let’s say 50 or 70, 100 million? I mean what can be the number that we could look at from this facility?
Dr.Sharvil P. Patel
No, it will be a little higher than that.
Unidentified Participant
All right. Okay.
Unidentified Participant
My second question is on the cost. Now obviously we saw the full consolidation of comfort, click and amplitude in this quarter. We’ll probably have you know, the CDMO cost coming through and then we have SARO next year. So if I were to look at FY27, you know, what should be a good cost estimate, you know, that we should look at? I mean from the current, if I were to strip out the R D number, I think we are close to about you know, 1600, 1650 crores you know so roughly what would be this number on a run rate basis in 27 and when should we start seeing these arrow commercialization cost, the Mr.
Etc. That cost.
Dr.Sharvil P. Patel
So. Hi Neha, this is Tushar. Our. Yeah. So our current run rate, you know in terms of other expenses excluding R D expenditure for this particular quarter and what we Expect is about 1750-1800 crores excluding R D spend. But you know the, the aging expenses will be, you know we are expecting that to be about you know around 20 million on other expenses. So we’ll have to see that you know in terms of on annualized basis if it is about 20 million, how the the phasing is going to happen. But our current run rate is expected to be about 1,750 to 1,800 crores excluding R&D opex.
Unidentified Participant
And this includes the 20 million from Engenis and the S cost that we will incur, right?
Dr.Sharvil P. Patel
No, this does not include that.
Unidentified Participant
Oh the 750 to 1800 is excluding the and S costs.
Dr.Sharvil P. Patel
Yeah, the S. Any kind of launch specific expenses is not included in this.
Unidentified Participant
And when would we start seeing that given that we will file the product now, you know probably by earliest I can, you know, if we expect launch in end FY27, should we fiscal 27, should we start assuming some cost coming through in 27 or it will largely be a 2528 sort of, you know, cost where we see for Saro.
Dr.Sharvil P. Patel
No, 27 will see a meaningful cost.
Unidentified Participant
Okay. And we are not quantifying that at the moment.
Dr.Sharvil P. Patel
No, I think it’s as I said, it’ll slowly ramp up because we have it depends once on filing and how we are going ahead with the hiring and other strategic initiatives. So it’s too early to give a guidance but it’ll be meaningful. But it will be building up as we move through the year.
Unidentified Participant
All right. So thank you so much.
Dr.Sharvil P. Patel
I think they are. The idea is that you know, once we are able to close on the budget and other things, probably Q4 will be the better time for us to give you the better guidance.
Unidentified Participant
Okay, that’s helpful.
Ganesh N. Nayak
Sure.
Unidentified Participant
Thank you so much.
operator
The next question is from Sayon Mukherjee.
Unidentified Participant
Hi. Thanks for taking my question. So the R D cost has gone up significantly this quarter. Can you just explain and you know your comment mentions around maybe 100 crore plus increase in other expense in the quarters ahead. What is going to drive this further increase? Is it R D or something else which will, which will drive that number.
Dr.Sharvil P. Patel
So R. Thanks. Saiyan So R D we are, as I said, we expect a 7.5 to 8% of our revenue for FY26. That’s what we guided for. There is always lumpiness to R D in the third. Quarter, which is October, December quarter, we have a lot of them. And also then the different clinical trials that are going on for biologics and others. So it’s generally that lumpy. But. And you’ve seen that in the last year, same quarter as well. And. But yeah, we are guiding towards the 7.5 to 8% for this financial year.
Unidentified Participant
Okay. Okay. My second question, you know, is regarding, you know, international market where we have seen significant growth in the recent past. If you can give some color, what happened over the last four, five years, you know, the business has almost tripled and how should we think about it going forward?
Dr.Sharvil P. Patel
So I would say as I said, there are two, three things. That is one is the key focus on the markets and doubling down on the branded space in the EM space with cvs, I mean CNS being the most important part. And then we also expanded to some other metabolic disorders including pain. So that’s helping us. And so while there have been up and down that have happened in different markets but overall I think markets have done very well in terms of growth. The second is expanding our access to more markets with the quality of filings that we have and the products that we have where we are many times semi exclusive or exclusive because of the technology, we are seeing good traction to execute new markets in terms of launch and Europe which was going through a challenge for us in the last three years, in the last year and this year have done meaningfully better and they’re significantly scaling up their business with both reach as well as the product portfolio growing.
And that’s also helped the overall business in terms of growth. And I would say also all the new markets that we entered like UK and some of the markets in em, all of them have significantly tracked better than expectations both on revenue and margins. So that has led to the overall growth. So I would say a lot of it led by good portfolio which is there which we are accessing for these markets and then very strong execution in the market.
Unidentified Participant
And so you see this as sustainable, like at least double digit growth to continue in the coming two, three years.
Dr.Sharvil P. Patel
Yeah, we see meaningfully 20 plus percent growth continuing for the near future.
Dr.Sharvil P. Patel
Okay.
Unidentified Participant
And so just one last question on the US if you can comment on rev limit whether it was large slow this quarter and also on Mira background there are some news of Settlement by Lupin. So how should we think about the landscape on Mira background which is a big contributor for you currently in the. U.S. so yeah, on on Revolution as I said, every quarter the trajectory is on a downward trend and even in this quarter gone by it’s a very small part of the overall business now and we won’t see any anything in the next quarter. So we have sort of completed our business sort of so to say.526 on on lenalidomide. And so by by and large in this quarter is gone and next quarter we will not see anything with regard relate to Mirabigran. The trial started as of of Monday on the 9th of Feb with jury selection.
The party started presenting the they will start presenting the case on Tuesday in on which is February 10 and the court has directed the parties for mediation while the trial is proceeding. So that’s where we are today. Any comment on possible competitive landscape here over the next year or so?
Dr.Sharvil P. Patel
No, I mean it’s difficult to say. We see look there has been a Lupin has settled from what we hear today morning, so there is some write up there but I would say I would still refrain from saying anything till after the trial or after the mediation.
Unidentified Participant
Okay, thank you.
Dr.Sharvil P. Patel
Thank you.
operator
The next question is from Bino.
Unidentified Participant
Good morning. Just to follow up on the previous question depend what is the outcome of the trial? Or let me put it this way, is there any sort of outcome of the trial by which this opportunity of Mirabagran can stay exclusive to current players in the market for next three to four years?
Dr.Sharvil P. Patel
As I said, it will be better. The trial is just about to start. It will be better to not comment on on that outcome right now.
Unidentified Participant
Got it. On this Keytruda partnership that you have got into, are you expecting this to be the first biosimilar to market to Keytruda?
Dr.Sharvil P. Patel
So in terms of the product that we have licensed you I think from public domain, it is also known that this company has the is the furthest ahead in terms of both the clinical trial and the revised clinical trial guidelines. Actually they shape that guide almost you know, way of in terms of how this will move forward. So they are seen, they are further ahead in terms of the clinical development and FDA guidance that the firm has received. So there is we are also hoping that we do get to file as the first biosimilar and potentially also find a meaningful opportunity for launch being the first file.
Unidentified Participant
Understood. And again from public sources it seems the key patents are expiring 20, 28, 20, you know, without Any explicit guidance is that roughly the timeline around which we could target the launch?
Dr.Sharvil P. Patel
Yeah, we would be prepared with the kind of timelines that IPD and others are saying and even the commentary that we heard from various sources. So we would want to be prepared for that timeline.
Unidentified Participant
Understood. And one last question on Jardians empaglyph flows in. I believe we are one of the first to files. Do we have any chance of is it going to be any materially meaningful product for us even if it is a couple of years out?
Dr.Sharvil P. Patel
So I, I would say overall we do have been good had a good success in terms of first to file and also settlement. So we are quite, we do see a lot of good pipeline of products coming through including empa. But also importantly even in the year gone by we had we have filed almost four to five against sole exclusive first to file. So it’s probably been one of the best years for Zydus in terms of sole first to file opportunities that we have seen. So we are quite excited with the prospect of future pipeline that we’ll get to launch.
Unidentified Participant
Sorry, I didn’t understand. Is empower going to be a sole opportunity for you or will it be shared?
Dr.Sharvil P. Patel
No, no, Empire is not a sole but as I said beyond that also we have filed at least four sold experts to files this year.
Unidentified Participant
Okay, thanks. I’ll join my. You.
operator
The next question is from Nitin Agarwal. Hi Nitin, can you hear us?
Unidentified Participant
Okay, we move on. Yeah, Nathan, can you hear us? Yeah, I can hear you. So I was just saying that you know, with the, you know in the US with with Revlimid not being there from the next quarter onwards as you guided and some of our major first two files also kicking in the second half of the year. How should we think about the U.S. business growth for the interim next three to four quarters.
Dr.Sharvil P. Patel
So we have guided that we will still see growth in the US in the coming year. In fact even in FY26 in the at least the calendar year we have seen 11% volume growth for I US business. While the market is grown at 1%. We have grown at 11 plus percent on on the volumes. So which is also helping so both the base business is robustly growing. We still continue to launch meaningfully a lot of products in the US and will continue in this year also. And then as I said as the year comes nearer to the end we’ll have some exclusive launch also.
So we will see a good growth continue in the US genetics business.
Unidentified Participant
Oops. Thank you so much.
Dr.Sharvil P. Patel
Thank you.
operator
The next question is from surya patra.
Dr.Sharvil P. Patel
Yeah, thank you for this opportunity sir. I will just extend my question on the US growth side. What are the key trigger that you are witnessing is the growth driver for the let’s say next one or two year. And when we talk about the specialty opportunities we have already three this rare disease products also that is there in the US market already. So considering all that, how big the specialty contribution would be to the US and how significantly it can ramp it up, what do you think and what other trigger that you find for the US growth for the next two years?
Dr.Sharvil P. Patel
So in the next you know, medium term, in the next two years obviously we have very important launches, four to five sizable launches that we’ll get to see in somewhere. We are solely exclusive in the market. Beyond that obviously we have plans to launch 40 to 45 plus products in in FY27 and we’ll continue to have a large growth trajectory going forward as well. And then the whole 505 V2 franchise of liquids as well as the supportive Encore product Like bees Ray, As I said, we hope to file one more soon with a partner and also potentially launch it in a year’s time.
So all of that will lead to adding further approve further value on that. And we just licensed Rani Bizumab also biosimilar so we also see that in the second half of the year a launch of that. So overall I would say the specialty 5 5B2 pipeline will grow very well with buyer similars entering also. Beyond that obviously Sentinel has three just launched Zykubo and we’ll see a good year for Sentinel in the coming years. So that part of the specialty business will also meaningfully track. And as I said our generics business continues to do well.
We had 11% volume growth in spite of what the market is and that likely will continue.
Unidentified Participant
Okay, so here price erosion is single digit. That is how one should consider when you say it’s 11 volume growth.
Dr.Sharvil P. Patel
Yeah, I mean other than Lenalidomide and others. Sorry, can you repeat that?
Unidentified Participant
So when he said 11 kind of volume growth, price erosion should be single digit. That is what one should believe.
Dr.Sharvil P. Patel
Yeah.
Ganesh N. Nayak
Okay.
Unidentified Participant
My second question is on the margin scenario going ahead the couple of factors that is likely to play out. See obviously the Lenalidomide factor. Secondly the R D higher R and D spend that we are likely to see and the blended margin implication of the two larger acquisition what we have recently seen, the amplitude as well as the comfort click, I think that is on a blended basis margin is lower than the current margin scenario or our reported margin. Our base business margin excluding rev limit. That is the kind of margin what the acquisitions would be having.
So given that there is a kind of a visible pressure on the margin on the subsequent quarters that is it looks like any sense or any commentary on that.
Dr.Sharvil P. Patel
So I think for obviously we have had exceptionally high margin much significantly higher than even any industry margin that has existed in FY26. We in if you look at. Going forward assuming the challenge in quarter four which would probably see very little growth or when you when or no sale also on Lenarimide we would still expect a 23% plus margin. And so I think while we yes you are right. CCL will have lower margins overall consumer business next quarter which is a bigger quarter will have lower margins and amplitude has a little. I mean it’s near to it but similar margin.
We will still track at 23% plus margin in the quarter four.
Unidentified Participant
Okay, so just one clarification sir. This amplitude what is the like to like growth that we would have seen in this quarter Whether the the metric revenue what we have reported it is purely aptitude or something else also that.
Dr.Sharvil P. Patel
Is included there is is that plus some cardiovascular sales as well.
Unidentified Participant
Okay. And what would is the like to like growth in the amplitude sir?
Dr.Sharvil P. Patel
So is high single digit growth for the like to like business?
Unidentified Participant
Sure, sir. Yeah. Thank you. Wish you all the best.
operator
Thank you. The next follow up question is from Bino.
Unidentified Participant
Thanks again. Just following up on the product.
Dr.Sharvil P. Patel
Which.
Unidentified Participant
We have in licensed. Is it as of today FY27 opportunity or an FY28 opportunity?
Dr.Sharvil P. Patel
I the first part I missed the when you said licensed.
Unidentified Participant
Yeah.
Unidentified Participant
Palbocyclib which we have in licensed. I believe there was some patent pediatric extension which was awaited. So as of now would it be a FY27 opportunity or FY28 opportunity?
Dr.Sharvil P. Patel
So that we can’t answer because the if the pediatric exclus is granted then it will be FY28. Otherwise it could be FY27.
operator
Okay.
Unidentified Participant
And Rio Siguat continues to be a 527 opportunity, right?
Dr.Sharvil P. Patel
Yes, got it.
Unidentified Participant
And one last question on this product Ensamide Extandi. Is that a material product for us whenever it comes.
Dr.Sharvil P. Patel
I’ll. I’ll ask Arvind to come back to you on that specific product because I over on top of my directly I can’t answer that.
Unidentified Participant
Okay.
Dr.Sharvil P. Patel
Because I don’t have recollect.
Dr.Sharvil P. Patel
Yeah.
Unidentified Participant
Thank you.
Dr.Sharvil P. Patel
Thank you.
Unidentified Participant
Thank you.
operator
The next follow up question is from S. Mukherjee.
Unidentified Participant
Thanks for the follow up, just a couple of questions on India. I think the growth that you are reporting, would it be fair to assume or assess that a fair bit of it is being contributed by Taro Gitazar, Decidu Stat and your biosimilar portfolio. And in that context like how should we think about these products growing? Because I think this year has been a good step up particularly for Decidu Stat. Where do you see these brands, you know the peak sales potential particularly for Saro and Decidustat and are there any patent risks that we need to be worried about on these products over the next three, four years?
Dr.Sharvil P. Patel
On the patent risk? No, we have a longer patent life. In terms of traction. Yes, our innovative portfolio is growing much faster. It’s growing at 23 plus percent. But also our growth booster brands which are those 30 odd brands that we focus on are also growing at greater than 13%. So I would say overall the portfolio is, is tracking very well. And as this product scale up like Saro Desi also our biologics portfolio business also we’ll see a better trajectory on that. You know we are Saro is Already overall a 450 plus crore franchise as a molecule and we see the very strong, very significant strong growth continuing for the franchise.
So we’re quite bullish on Saro also Desi similarly is tracked very well and we only see stronger traction going forward. And so I think from that point of view, yeah the patented molecules are doing very well. The biologics are also doing extremely well. And as I said even beyond that our growth booster brands which are beyond these are also tracking significantly better than market.
Unidentified Participant
Okay.
Dr.Sharvil P. Patel
And other business also which is separate.
Ganesh N. Nayak
Yeah, okay.
Dr.Sharvil P. Patel
Okay.
Unidentified Participant
This is just on you know mentioned about some tender wins on vaccines. So how large are this potential and when should we pencil in these revenues in our model?
Dr.Sharvil P. Patel
So this year we have definitely grown very well and next year we also have a very significant growth expectation on vaccine in the India public tender market. We had one last year, FY26, the Mr. Tender which is a 100 plus crore already opportunity that we have realized on a single product are also great. A very strong traction on our flu vaccine which is also gaining meaningful and we hope to become the largest flu player in India very soon. And the rabies vaccines have done extremely well in the Indian market as also also with pre qualification.
I think as we get to the global tenders, you know obviously there are, we are starting off on some of them so the initial starts are small. But as we get into the second year, third year, the supplies go up. So. We, as I said I are in the next three to four years we want to have a thousand crore plus business on vaccines for sure. And that’s what we are consideratively aiming for.
Ganesh N. Nayak
Okay.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from Bansi Desai.
Unidentified Participant
Hi, thanks for the opportunity. My question to you is on our M and A strategy. So you had earlier outlined that you would want to scale up U.S. specialty through inorganic opportunities and therefore if you could provide an update on the progress of this strategy and the nature of assets that you are prioritizing in terms of therapy areas or commercial stage of these assets.
Dr.Sharvil P. Patel
So in the U.S. as I said, yes, we are looking to how do we diversify and have more specialty driven business. So it’s a meaningful, I mean I think the couple of meaningful things that have happened for us is obviously the launch of Zycubo, which is our third specialty drug or a rare disease drug that has happened. We do see traction to being able to find more of these opportunities in the next, you know, year or two. We hope to at least get one or two deals almost every year. So that’s one BDNL opportunity opportunity and licensing and development opportunity that we look to scale up and we’ve done well so far and we track, continue to track well in terms of getting more leads.
Beyond that obviously we’re building the 552 specialty space with supportive Onco as the key area that we are focusing on and we want to push for that further. I think the biosimilar launches will also aid to that. Rani Bizumab will also be a type of specialty launch in the US market. So we are excited with that opportunity also as we move forward. So overall yes, the specialty business will continue to grow and then finally for our SARO glitters are part of the portfolio. Once we come near to launch, we are hoping to find more assets to add to saro.
Both mostly commercial assets and we continue to track and see what we can look for. But it will be in the liver, Hepato gastro space, adjacency or at least any niche adjacencies in major diseases. So it will be mostly specialty driven portfolio acquisition if we are able to do.
Unidentified Participant
And any plans to augment this via assets which have commercial infrastructure or capabilities around that?
Dr.Sharvil P. Patel
Yes, that is also a way we are looking at it.
Unidentified Participant
All right. And my second question is on India, you know, given our innovative brands are doing well, our chronic mix is going up. We will also see potentially GLP1 launches. So fair to assume that you know our India business should you know track that, you know, double digit growth, you know, for the next two, three years. You know based on the portfolio that we have today.
Dr.Sharvil P. Patel
Yes, I think we have a strong momentum for our innovative brands. Also we will have SEMA launch as well as many other interesting first day one launches in the market. Also future more proprietary new drugs to come. So we are quite bullish on double digit growth for India.
Unidentified Participant
All right, thank you.
operator
Thank you. The next question from Devang Saraugi.
Unidentified Participant
Morning sir.
Dr.Sharvil P. Patel
Good morning.
Unidentified Participant
We secured shareholder approval for 5,000 crore QIP back in December. Given that two months have already passed, could you clarify if the fundraising is strictly contingent on any acquisition or we are waiting for better market conditions to, to minimize dilution.
Dr.Sharvil P. Patel
It is, it is mostly contingent on if we get to see any major opportunity. As I said our internal accruals are we, I mean and cash flows are sufficient for us to, to you know, continue to do what we need to do without fundraise. Fundraise is an enabling provision for us to use if we feel that we, we need to provided we can see any meaningful acquisition.
Unidentified Participant
And secondly, if any, if you can provide any clarity for Mira Bigran litigation, what should, what should we assess the maximum risk limit for the product.
Dr.Sharvil P. Patel
As we speak we are in litigation so I don’t think we’ll be able to make any comments for now.
Unidentified Participant
Okay, thank you.
Dr.Sharvil P. Patel
Thank you.
operator
The next question is a follow up from Surya Patra. Hi Surya. Requesting you to unmute and ask your question.
Unidentified Participant
Thank you. So just wanted to understand how important this myriad genetic collaboration would be for us and what is the opportunity that we are trying to target here.
Dr.Sharvil P. Patel
So you know we had earlier already licensed one opportunity in the liquid biopsy space with Guardian and that’s tracking extremely well in India. And the liquid biopsy business for Guardian which is exclusively managing is doing extremely well. This will significantly add to that capability on creating more opportunity and access for patients to test for genetic disorders as well as not generic for genetic conditions with related to cancer and others. So this I think our views in the next two to three years this would be a very meaningful business sticky business for the company. It’s already tracking very well with just can assist and the liquid biopsy business and this would significantly add further opportunity for the company.
Beyond that obviously we create a very strong patient angle to how we manage the whole ecosystem for cancer for both the oncologist as well as the cancer patient in terms of, you know, giving Them additional opportunities for them to test and early diagnose. So I think all of that will lead to us continue to be the largest on Indian oncology player as we intend to be but also not only be the largest but also create more value for the patient.
Unidentified Participant
Second one just a clarification further again on the GLP one. I believe we had mentioned earlier that we may not be there in the first wave of commercialization in India or emerging market because our product would be slightly differentiated product than the pure plain vanilla generic of semaglutide. So if you can clarify sir, because you have got the approval from the CDSO about your generic version. So what strategy that you are likely to play here and what is your manufacturing arrangements or participants for GLP1.
Dr.Sharvil P. Patel
So I think Surya, there may have been some misunderstanding. We will be in the first wave of launches when it comes to India launch. We will also be partnering with at least two or three companies who will use IDIs’s SEMA to launch. So we are definitely in the first wave. We already have marketing authorizations and all of that. So that is happening in terms of and that will be with our novel formulation. In terms of other markets we as I said we are saying we are not in the first wave when it comes to other markets but in probably in the next 12 months we will enter those markets also.
But in India definitely we will be on day one.
Unidentified Participant
What is the nobility that we are talking about.
Dr.Sharvil P. Patel
So we have a new formulation where we it’s a very significant ease to the patient in terms of use. Also there is a very meaningful benefit in terms of cost because today we have in in typically you for weight loss you have to shift from the first four weeks to the next four weeks with a different dose and that means a different pen device. For us. We have a product which straddles through the whole lifetime and we don’t need to make any changes from the initial dosing to the higher dosing with the same device it continues.
So it definitely adds significant ease of use for the patient in much less complexity for patients to learn two devices. Also the supply chain wise it becomes much easier because you’re not carrying two different devices is for early first four weeks and then the future. So all of that is going to lead to very meaningful I would say patient burden being lowered in terms of understanding and use and carrying and also in terms of supply chain also convenience of losing.
Unidentified Participant
Okay, okay. Just last one point sir. On the on the on the finance cost side we are having the cash balance as well as the debt. So that’s why the interest cost is seeing a kind of sequential rise. So generally, what is the kind of a thought process here going when we think about FY27 and beyond.
Dr.Sharvil P. Patel
So I net the net debt basis. We are 3000 crores of debt as of now. And I would say that’s because of obviously the large acquisitions that we have done recently. But I think we are more than comfortable in terms of our net debt position.
Ganesh N. Nayak
Okay.
Unidentified Participant
Okay. Yeah. Thank you, sir. With you. All the best.
Dr.Sharvil P. Patel
Thank you.
Ganesh N. Nayak
Thank you.
operator
The next question is from Gaurav Tinani.
Unidentified Participant
Yeah, hi. Good morning. So first questions on the bias and the strategy. So firstly on Ranibizumab. Just want to understand the landscape right now. I believe, you know, Sandoz was also selling or was in a partnership with Pharmacon for Brani Visumaf, but then they kind of withdrew from the market. Now we’ve also got into an alliance with Formicon. So do we see the commercial landscape still attractive. And do we see this as you know, Sando’s. When can they re enter the market and when can Zydus enter the market here, please.
Dr.Sharvil P. Patel
So as I said, we. We hope to enter in by the. In the second half of the year. That’s where we are planning for launch. There is a. Definitely a opportunity where there is not enough biosimilars available on randomizumab in the market. And we see that as an opportunity.
Unidentified Participant
So Sandoz had, you know, almost a 48% share and he still withdrew from the market. Now, you know, any read through from there, why did they withdraw from the market? And now we’ve also taken Formicon’s product. So, you know, why did Sandoz withdraw the market?
Dr.Sharvil P. Patel
And you know, no, I don’t have. I mean it may be. Obviously it’s not.
Unidentified Participant
Definitely not a regulatory reason, maybe a commercial reason.
Dr.Sharvil P. Patel
I don’t know.
Unidentified Participant
Okay. Secondly, for biosimilar, what, you know, the next clinical milestone in terms of the phase one study completing. When can we expect the readout for that? Do you see that in H1 of this calendar year? H1 or CY 2026?
Dr.Sharvil P. Patel
Yeah, we will see it in this year. I mean, this calendar year.
Unidentified Participant
This calendar year. Okay, got it. And the propo. If, if the study is successful in the preside. We’ve also mentioned that, you know, we can use a genesis facility for manufacturing in the future. Now the initial filing on successful study, will that include a genus site or that will include an alternate site initially for Pharmicon and then a genus site will be included subsequently. Any readout on that please?
Ganesh N. Nayak
No. Currently we Formicon manufactures it in a European facility and we are going to file as a primary filing through that. Subsequently we will evaluate as a second source filing whether we need to. We will use our US facility but currently the VLA application will be submitted through the European side.
Unidentified Participant
Got it. Last question. I think we’ve guided for you know 23% plus margins in Q4 of this year. With next year the US growing emerging markets growing 20% plus India also going in double digits. Any guidance for EBITDA margins for next year?
Dr.Sharvil P. Patel
I think we as I said the best is to for us to give you the next quarter guidance and I think as we start the next financial year we’ll probably come out with better more near term guidance. But right now I would say the nearest guidance is we’ll try be in the fourth quarter despite no revenue on leninomide we will see a 23% plus margin.
Unidentified Participant
Okay sir, thank you. All the best.
operator
We wait for a few minutes until the queue assembles. Requesting participants to please raise their hand from participant tab on the screen to ask question. Because there are no further questions we take a follow up question from Gaurav Tinani.
Unidentified Participant
Yeah, sorry, one last question. So as we are building in you know a slight ramp up in other expenses XRD which we guided earlier in this call. What would be the key levers for you know this higher OPEX spend? Would there be a you know a field force dedicated for glp? There be a field force for biosimilars driving this or would there be you know marketing spend in comfort click or you know additional field force and amplitude driving this? Any read through for that means?
Dr.Sharvil P. Patel
No, none of those. The it’s the acquisitions that have led to obviously some of the higher base being created. But there is no additional of 4C field forces in the current acquisition or the current businesses future. SARO will have a commercial team which is not baked in yet. So the biosimilars field force for Rani would be the same which we use for the 505B2. Yeah products this largely in the same number of people we have. We’ll reorganize a little bit.
Unidentified Participant
Okay sir. Got it. Thank you.
Dr.Sharvil P. Patel
Thank you.
Ganesh N. Nayak
I think you.
operator
Yes sir. We can. We can have a closing remarks and then close the call.
Ganesh N. Nayak
Yeah, thank you. I think as I think the organizer said there are no further questions. Thank you everyone and we look forward to seeing you in the next quarter.
operator
Ladies and gentlemen, that concludes today’s conference. Thank you for joining us. And you may now disconnect your lines and exit the Webinar.
Dr.Sharvil P. Patel
Thank you.
Ganesh N. Nayak
Thank you.