ZYDUS LIFESCIENCES LIMITED

Recommendation history

• 2026-05-24HoldHold: Zydus exited FY26 strongly, with Q4 revenue up 16% YoY to ₹75.9bn, EBITDA up 20% to ₹25.6bn and a 33.7% EBITDA margin, while FY27 revenue is guided to high-teens growth. However, management expects FY27 margins only above 24% versus 31.2% for FY26 as Revlimid/Mirabegron competition and Saro commercialization costs weigh; specialty and MedTech remain too early to offset that risk with confidence.
• 2026-02-15HoldHold: Zydus delivered strong Q3 execution—revenue rose 30% to ₹68.6 billion, EBITDA rose 31% to ₹18.2 billion, and adjusted profit increased 9% to ₹11.1 billion—but the outlook is not yet clean enough for a buy. India, international markets and the base US business are strong, yet the imminent loss of Lenalidomide revenue, lower-margin acquisitions, rising R&D and unquantified Saroglitazar launch costs create a near-term earnings and margin transition.
• 2025-11-13HoldHold: Zydus delivered a strong Q2 FY26, with revenue of ₹61.2 billion (+17% YoY), EBITDA margin of 32.9% (+500 bps), and net profit of ₹12.6 billion (+38%). The growth outlook remains attractive across India, international markets, specialty launches, and vaccines, but the near-term US base faces the fading Revlimid contribution, while QIP-funded M&A and limited disclosure on Saroglitazar’s commercial economics argue against chasing the stock after the call.
• 2025-09-24HoldHold: the AGM reinforced Zydus Lifesciences’ growth ambitions but offered no quantified outlook or fresh earnings catalysts. FY25 EPS was cited at ₹57.39 versus ₹34 previously, with a ₹11 per-share dividend, while the key unresolved risks are the Ahmedabad oncology plant’s FDA observations and roughly ₹2,000 crore of investments in loss-making subsidiaries highlighted by shareholders.
• 2025-08-20HoldHold: Zydus delivered a strong Q1 FY26, with revenue up 6% to ₹65.7 billion, EBITDA margin at 31.8%, and net cash of ₹56.3 billion. The near-term outlook is supported by single-digit FY26 US growth, >26% EBITDA margins, and high-teens to mid-20s international growth, but FY27 visibility remains weak as Revlimid fades and Mirabegron faces a February 2026 trial.
• 2025-05-27HoldHold. FY25 was excellent—revenue rose 19% to ₹232.4 billion, EBITDA grew 31% to ₹70.6 billion and operating margin reached 30.4%—but FY26 guidance implies a sharp normalization to roughly 26% EBITDA margin and only single-digit US growth. India, international markets, vaccines and a resilient US base support double-digit consolidated revenue growth, yet Revlimid price erosion, Asacol loss, Mirabegron litigation and limited disclosure around FY27 launches prevent a clean buy signal.
• 2025-02-11BuyBuy: Zydus delivered a strong Q3 FY25, with revenue up 17% YoY to ₹52.7 billion, EBITDA up 26% to ₹13.9 billion and net profit up 30% to ₹10.2 billion; reported EBITDA margin expanded to 26.3% despite a 250 bps increase in R&D intensity. The bull case is resilient US base-business growth, Sitagliptin/CVS commercialization, 25–30-plus upcoming US launches and ₹30.9 billion of net cash, while the key tension is that US Q3 revenue was flat sequentially and remains exposed to Revlimid normalization, Asacol competition and Mirabegron litigation.