Wockhardt delivers strong FY25 EBITDA, but net loss persists amid US restructuring drag

Mumbai-based pharmaceutical and biotechnology company Wockhardt Limited reported a robust 67% year-on-year surge in EBITDA for FY25, reaching ₹418 crore, on the back of improved operational performance and global business traction. Total revenue for the financial year ended March 2025 came in at ₹3,033 crore, reflecting a modest 5% annual growth from ₹2,879 crore in FY24. However, the company closed the year with a net loss of ₹57 crore due to exceptional expenses and operational restructuring, especially in its U.S. division.

On the stock market, Wockhardt shares ended the trading session on May 29, 2025, at ₹1,345, up 0.59% from the previous close, buoyed by investor optimism surrounding its drug pipeline and FY25 margin expansion. The company’s total market capitalization now stands at ₹21,854 crore, with a free float component of ₹11,078 crore, making it a notable player within the NIFTY 500 pharmaceutical index.

What Drove Wockhardt’s FY25 Performance?

Wockhardt’s consolidated financials show a consistent improvement in operational efficiency, with EBITDA margins rising to 13.8% in FY25 from 8.7% in FY24. This was achieved despite R&D expenses of ₹119 crore, maintaining a healthy balance between innovation and cost control.

The quarterly performance was more mixed. For Q4 FY25, Wockhardt posted revenue of ₹743 crore—flat compared to ₹750 crore in Q4 FY24. While EBITDA rose 13% sequentially to ₹79 crore, the company reported a net loss of ₹45 crore, extending its red ink from ₹177 crore in Q4 FY24, largely due to losses linked to prior asset sales and the lagging impact of U.S. operational restructuring.

Notably, the company had earlier recognized a ₹79 crore impairment loss on assets held for sale and a ₹42 crore loss on property, plant, and equipment sales—both related to its U.S. operations.

Is Wockhardt’s Drug Pipeline a Turning Point?

Wockhardt’s management spotlighted key innovations from its R&D engine, which now holds a patent portfolio of 848 granted patents from 3,273 filings, including six new chemical entity (NCE) patents granted in India.

The company’s lead asset ZAYNICH® (Zidebactam/Cefepime, WCK 5222), a novel β-lactam enhancer antibiotic, emerged as a potential game-changer. Following a successful global Phase III trial across 64 sites in the U.S., Europe, LATAM, China, and India involving 529 patients, Zaynich posted a clinical cure rate of 96.8%, the highest recorded among new antibiotics in over a decade. In head-to-head comparison, it achieved a superior 89% composite cure rate against 68.4% for meropenem—the current gold standard.

Zaynich has already been filed for commercial approval with India’s DCGI as of March 31, 2025, and is expected to be submitted to the U.S. FDA by August 2025. The asset has also been used under compassionate care in over 50 patients globally, including three in the U.S., with >95% success.

Another major launch is MIQNAF, India’s first indigenous respiratory antibiotic approved and launched on May 27, 2025. Targeting community-acquired bacterial pneumonia (CABP), the drug offers a three-day ultra-short oral therapy against resistant pathogens, marking a significant advancement in the country’s antimicrobial resistance (AMR) response. The launch ends a three-decade drought of new macrolide-class antibiotics and was recognized by the Indian government with the 2024 BIRAC Innovator Award.

Wockhardt plans to expand Miqnaf’s footprint across emerging markets including Saudi Arabia, Latin America, Southeast Asia, and Africa.

How Is Wockhardt Positioning for Outpatient Antimicrobial Care?

WCK 6777 (Ertapenem-Zidebactam), another asset in Wockhardt’s pipeline, is positioned uniquely for once-a-day outpatient parenteral antimicrobial therapy (OPAT)—a segment with high global unmet need. Backed by Fast Track designation from the U.S. FDA, it targets complicated urinary and intra-abdominal infections resistant to meropenem.

Initial Phase I studies conducted in collaboration with the U.S. NIH show a clean safety profile with no serious adverse events. The drug is now transitioning to Phase II trials and aligns with growing healthcare trends around decentralizing treatment and reducing hospital loads.

Are Biosimilars and International Markets Wockhardt’s Growth Engine?

The biosimilars segment also gained momentum, particularly in insulin and glargine therapies, which are seeing increasing volume-driven growth. Wockhardt is currently upgrading its facilities to scale operations in India and other emerging markets, capitalizing on demand in diabetes care.

International revenues remain the cornerstone of the company’s financial architecture. In FY25, the UK business delivered ₹1,169 crore in revenue, growing 12% YoY, while Irish operations brought in ₹181 crore. India’s branded business contributed ₹456 crore. Wockhardt UK led the way with 6 launches and 7 filings, and the Irish unit followed with 6 product launches. Biosimilars and novel compounds together recorded 19 filings and 5 regulatory approvals during the year.

Emrok/Emrok O, another flagship antibiotic product line, has now treated over 100,000 patients and is in the registration phase across 9 emerging market countries, with approvals expected in the next 6–12 months.

What Are Institutional and Investor Signals Saying?

Despite the negative bottom line, institutional sentiment appears cautiously optimistic. The steady improvement in margins, the scale of global trials, and the strategic push into unmet antimicrobial areas are being interpreted as long-term positives. The company’s bet on pipeline assets like Zaynich and Miqnaf is viewed as high-risk but potentially high-reward, with regulatory filings lined up in the U.S., India, and Europe.

Delivery volumes stood at 35.98% of traded quantity, signaling moderate conviction from retail and institutional investors alike. Wockhardt’s annualized volatility remains elevated at 64.57%, indicative of its risk profile amid ongoing restructuring.

Can Wockhardt Break Even in FY26?

For FY26, the key to reversing net losses may lie in successful NDA clearances, commercial scale-up of novel antibiotics, and expansion into OPAT and biosimilar segments. Analysts note that with Zaynich’s U.S. filing and potential FDA fast-track designations for WCK 6777, Wockhardt is playing a bold pipeline game in a post-COVID pharmaceutical landscape shaped by antibiotic resistance.

Yet, challenges persist. Legacy asset sales, restructuring overheads, and continued R&D intensity will keep pressure on cash flows. However, a possible turnaround is not off the table if Wockhardt can convert scientific momentum into regulatory and commercial wins.