Sector Alpha Week of 2026-07-24
Sector Alpha — machine-written from the numbers · Data as of 2026-07-24

Zydus Lifesciences Ltd

ZYDUSLIFE
Pharma - Formulators

Zydus Lifesciences Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it.

Biggest watch item: margins are the best this company has ever printed — every ratio flatters at record profitability, so the whole story leans on margins holding.

The price is in a confirmed uptrend (8 weeks in) while the P/E sits at the 38th percentile of its own 10-year range. Underneath, the last four quarters read improving — profit +7.8% year on year, and 88% of the last 3 years' profit arrived as cash. What settles it: the next one or two quarters of delivery.

Stage
Consistent
partial read
Price
₹1,144
+17.3% 1Y
P/E
20.4×
38th pctile
of its own 10-year range
Revenue (Mar 26)
₹7,587 Cr
+16.2% YoY
Profit (Mar 26)
₹1,341 Cr
+7.8% YoY
Operating margin
34.0%
+1.0 pp YoY
ROCE
21%
FY26
ROIC
13.1%
vs WACC 12.0% → +1.1 pp
Cash conversion
88%
of profit, last 3 FY
01 · Price story

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Zydus Lifesciences Ltd trades at ₹1,144, in a confirmed uptrend and 8 weeks into that stage. That is +15.5% against its own 200-day average. It sits at 98% of a 52-week range of ₹864 to ₹1,151. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 28 straight weeks.

Today the stock is in a confirmed uptrend — week 8 of stage 2, confirmed. At ₹1,144 it trades +15.5% versus its 200-day average and sits at 98% of its 52-week range (₹864–₹1,151).

Jul 26: ₹1,144 Weekly closing price (₹) with 50- and 200-day averages; shaded bands mark the price stage (grey base, green advance, amber top, red decline). 3-year window.
+15.5% versus the 200-day line, week 8 of stage 2
Price50-day avg200-day avg
S2S4S2S4S2₹1,366₹1,129₹892₹655₹418₹1,144₹990Jul 23Apr 24Feb 25Nov 25Jul 26
S2S4S2S4S2₹1,366₹1,129₹892₹655₹418₹1,144₹990Jul 23Feb 25Jul 26
Beating or trailing, week by week since 2016 Each cell is one week from 2016 to now (548 weeks): the stock's trailing 13-week return minus the NIFTY 500's, green ahead / red behind (±25% ramp). Grey cells are the 13-week warm-up or weeks where the NIFTY 500 reading is not held.
trailing 13-week return vs the NIFTY 500
Mar 16Jul 26

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +232% while the NIFTY 500 moved +274% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 28 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 38th percentile of its own range.

02 · Valuation

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Zydus Lifesciences Ltd trades at 20.4× P/E, mid-range by its own standards (38th percentile). Its long-run median P/E is 21.7×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 20.4× is mid-range by its own standards (38th percentile), against a long-run median of 21.7× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

P/E 20.4× vs a 21.7× long-run median P/E, weekly (left axis); earnings per share, trailing twelve months, weekly (right axis). 10.4-year window; loss-period spikes above 40× shown pinned at the top. The eps (ttm) bars are red where the reading is lower than the quarter before.
mid-range by its own standards (38th percentile)
P/EMedianEPS (TTM) (quarterly)
42.8×₹58.133.5×₹43.624.1×₹29.114.8×₹14.55.5×₹0.0×20.60×₹54Mar 16Oct 18Jun 21Jan 24Jul 26
42.8×₹58.133.5×₹43.624.1×₹29.114.8×₹14.55.5×₹0.0×20.60×₹54Mar 16Jun 21Jul 26
PEG 2.29 PEG ratio per quarter — the P/E divided by the earnings-growth rate. The dashed line marks 1.0: below it the growth is cheap against the multiple, above it the price already prices the growth in. Last 20 quarters.
above 1.0, the multiple already banks the growth
PEGPEG = 1.0
3.2×2.6×2.0×1.4×0.8××2.29×Q1 FY22Q1 FY23Q2 FY24Q3 FY25Q4 FY26
3.2×2.6×2.0×1.4×0.8××2.29×Q1 FY22Q2 FY24Q4 FY26
P/E
20.4×
38th percentile of 10y
PEG
10.87
as reported

Why the multiple sits where it does: over the past year annual EPS moved +11.4% against a +17.3% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +12.2%/yr price move, ~+19.1%/yr came from earnings growth and ~−6.9 pp from the multiple (compressing); over 10y, of the +12.1%/yr price move, ~+11.4%/yr came from earnings growth and ~+0.7 pp from the multiple (roughly flat). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

03 · Stage: Consistent

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Zydus Lifesciences Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 21.0% and holding. The read is built from 12 quarters across 4 curves, on partial evidence.

Three growth curves, twelve quarters Year-on-year growth of trailing-twelve-month revenue (left axis), profit and EPS (right axis — they swing far wider), % at each quarter-end. A missing point means that reading is not held for the quarter.
the trajectory the stage is read from
RevenueProfitEPS
23%109%20%69%17%28%14%−13%10%−53%%%16.8%9.7%11.4%Jun 23Sep 24Mar 26
23%109%20%69%17%28%14%−13%10%−53%%%16.8%9.7%11.4%Jun 23Sep 24Mar 26
ROCE Annual readings — the quarterly balance-sheet pieces this curve needs are not held for this stock, so the returns read moves once a year and carries less weight in the call.
the return curve, annual readings
ROCE
25%22%20%17%14%%21%FY23FY24FY26
25%22%20%17%14%%21%FY23FY24FY26
Revenue growth
Steady high
latest +16.8% · span +11.2% to +22.3%
Profit growth
Steady high
latest +9.7% · span −40.1% to +95.7%
EPS growth
Steady high
latest +11.4% · span −42.1% to +98.0%
ROCE
Steady high
latest 21.0% · span 15.0%–24.0%

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

Growth, year by year: revenue +16.8% in FY26, profit +9.7% Year-over-year growth per fiscal year, %: revenue (left axis); net profit and EPS (right axis — profit growth swings far wider). Zero line drawn.
Revenue YoYProfit YoYEPS YoY
29%125%21%76%13%28%5.3%−21%−2.7%−69%%%16.8%9.7%FY16FY21FY26
29%125%21%76%13%28%5.3%−21%−2.7%−69%%%16.8%9.7%FY16FY21FY26
TTM growth by quarter Trailing-twelve-month growth versus the year-ago TTM, per quarter, %: revenue (left axis); profit and EPS (right axis). The acceleration read compares the last 4 quarters (+16.8%) with the last 8 annualized (+17.8%).
revenue stabilising, profit rolling over
Revenue TTM YoYProfit TTM YoYEPS TTM YoY
23%109%20%69%17%28%14%−13%10%−53%%%16.8%9.7%Jun 23Sep 24Mar 26
23%109%20%69%17%28%14%−13%10%−53%%%16.8%9.7%Jun 23Sep 24Mar 26
Compound annual growth rate (%) Compound annual growth rate over each window, %. Revenue, profit and EPS from fiscal-year figures; share price is the price CAGR over the same spans. A dash = that window is not held, or the base was a loss.
1yr3yr5yr10yr
Revenue+16.8%+16.3%+12.4%+11.2%
Profit+9.7%+34.8%+18.6%+10.1%
EPS+11.4%+37.3%+19.2%+10.2%
Share price+17.3%+24.3%+12.2%+12.1%
Revenue YoY (Mar 26)
+16.2%
latest quarter vs a year ago
Profit YoY (Mar 26)
+7.8%
latest quarter vs a year ago
Revenue 10y
11.2%
long-run compound pace

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

04 · 4-Factor Sector Score

4-Factor Sector Score

58.9/100 — rank 9 of 43 in Pharma - Formulators · 93% evidence confidence

Zydus Lifesciences Ltd scores 58.9 out of 100 against the 43 companies it is compared with in Pharma - Formulators, ranking 9. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 17.6 + 15.3 + 13.7 + 12.3 = 58.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

05 · Revenue

Revenue Revenue is the top line: everything the company billed its customers in the period.

Zydus Lifesciences Ltd reported ₹7,587 Cr of revenue in the Mar 26 quarter, +16.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 11.2% a year. The last full year, FY26, came in at ₹27,148 Cr. The last four reported quarters add to ₹27,148 Cr.

Zydus Lifesciences Ltd reported ₹7,587 Cr of revenue in the Mar 26 quarter, +16.2% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 11.2% a year. The last full year, FY26, came in at ₹27,148 Cr. The last four reported quarters add to ₹27,148 Cr.

FY26 revenue came in at ₹27,148 Cr (+16.8% on the year), capping 10 years at 11.2% compound. The latest quarter (Mar 26) printed ₹7,587 Cr, +16.2% year on year — the 12th consecutive quarter of year-over-year growth.

FY26 revenue ₹27,148 Cr (+16.8% YoY) Revenue bars, ₹ Cr (left); YoY growth-% line (right). 11-year window. A bar is red when it is lower than the year before.
11.2% a year over 10 years
RevenueYoY growth
29.3k29%22.0k21%14.7k13%7.3k5.3%0−2.7%₹ Cr%₹27,14816.8%FY16FY21FY26
29.3k29%22.0k21%14.7k13%7.3k5.3%0−2.7%₹ Cr%₹27,14816.8%FY16FY21FY26
Mar 26: ₹7,587 Cr (+16.2% YoY) Quarterly revenue bars, ₹ Cr (left); YoY growth-% line (right). Last 12 quarters. A bar is red when it is lower than the quarter before.
12th straight quarter of growth
Revenue (quarterly)YoY growth
8.2k32%6.1k25%4.1k18%2.0k11%03.7%₹ Cr%₹7,58716.2%Jun 23Sep 24Mar 26
8.2k32%6.1k25%4.1k18%2.0k11%03.7%₹ Cr%₹7,58716.2%Jun 23Sep 24Mar 26

Pace check: the last four quarters averaged +17.3% growth against the decade's 11.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +16.8% over the last 4 quarters against +17.8%/yr over the last 8 — stabilising; TTM profit +9.7% vs +13.6%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 34.0% this quarter (+1.0 pp YoY).

06 · Operating margin

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Zydus Lifesciences Ltd's operating margin is 34.0% in the Mar 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 17.0% to 31.0%. The current quarter is running above every full year in that window.

Zydus Lifesciences Ltd's operating margin is 34.0% in the Mar 26 quarter, +1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 17.0% to 31.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 34.0%, +1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 17.0%–31.0%, and FY26's 31.0% is the top of that band — a record year.

Why the margin moved: operating margin went +1.1 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26: 31.0% Operating margin by fiscal year, %, line (left); year-on-year change in the margin, in percentage points, line (right). 13-year window.
the widest a 17.0–31.0% band over 13 years
operating marginYoY change (pp)
32%6.9%28%3.7%24%0.5%20%−2.7%16%−5.9%%%31%1%FY14FY20FY26
32%6.9%28%3.7%24%0.5%20%−2.7%16%−5.9%%%31%1%FY14FY20FY26
Mar 26: 34.0% operating margin (+1.0 pp YoY) Quarterly operating margin, %, line (left); year-on-year change in the margin, in percentage points, line (right). Last 12 quarters. Operating profit as a share of revenue, per quarter.
Operating marginYoY change (pp)
35%5.6%32%3.5%29%1.5%26%−0.5%23%−2.6%%%34%1%Jun 23Sep 24Mar 26
35%5.6%32%3.5%29%1.5%26%−0.5%23%−2.6%%%34%1%Jun 23Sep 24Mar 26

→ Margins held — did that reach the bottom line? Next: profit +7.8% in the latest quarter.

07 · Net profit

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Zydus Lifesciences Ltd earned ₹1,341 Cr of net profit in the Mar 26 quarter, +7.8% year on year. Full-year FY26 profit was ₹5,124 Cr. The 10-year compound rate is 10.1%. That is 17.7% of the quarter's revenue. The same quarter a year earlier earned ₹1,244 Cr.

Zydus Lifesciences Ltd earned ₹1,341 Cr of net profit in the Mar 26 quarter, +7.8% year on year. Full-year FY26 profit was ₹5,124 Cr. The 10-year compound rate is 10.1%. That is 17.7% of the quarter's revenue. The same quarter a year earlier earned ₹1,244 Cr.

Mar 26 profit was ₹1,341 Cr, +7.8% year on year. On the full year, FY26 printed ₹5,124 Cr (+9.7%), and the 10-year compound rate is 10.1%.

FY26 profit ₹5,124 Cr (+9.7% YoY) Net profit bars, ₹ Cr (left); YoY growth-% line (right). 11-year window. A bar is red when it is lower than the year before.
10.1% a year over 10 years
Net profitYoY growth
5.5k125%4.2k77%2.8k28%1.4k−20%0−68%₹ Cr%₹5,1249.7%FY16FY21FY26
5.5k125%4.2k77%2.8k28%1.4k−20%0−68%₹ Cr%₹5,1249.7%FY16FY21FY26
Mar 26: ₹1,341 Cr (+7.8% YoY) Quarterly net profit bars, ₹ Cr (left); YoY growth-% line (right). Last 12 quarters. A bar is red when it is lower than the quarter before.
Net profit (quarterly)YoY growth
1.6k268%1.2k196%821124%41152%0−20%₹ Cr%₹1,3417.8%Jun 23Sep 24Mar 26
1.6k268%1.2k196%821124%41152%0−20%₹ Cr%₹1,3417.8%Jun 23Sep 24Mar 26

Why profit moved: revenue contributed +16.2% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +11.2% vs revenue +17.3%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 88% of the last 3 years' profit arrived as cash.

08 · Cash flow — the router

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 88% of Zydus Lifesciences Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹2,117 Cr of operating cash against ₹5,124 Cr of profit. After ₹13,386 Cr of capital spending, ₹−11,269 Cr was left as free cash.

FY26: operating cash of ₹2,117 Cr against reported profit of ₹5,124 Cr, leaving free cash of ₹−11,269 Cr after ₹13,386 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 88% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

FY26: CFO ₹2,117 Cr vs profit ₹5,124 Cr Operating cash flow and net profit by fiscal year, ₹ Cr; the line is free cash flow (CFO minus capital spending). 11-year window, annual resolution.
88% of 3-year profit arrived as cash
Operating cashNet profitFree cash
8.2k3.0k−2.2k−7.5k−12.7k₹ Cr₹2,117₹5,124₹−11,269FY16FY21FY26
8.2k3.0k−2.2k−7.5k−12.7k₹ Cr₹2,117₹5,124₹−11,269FY16FY21FY26
FY26: CFO = 41% of profit (three-year rate 88%) Operating cash as a share of net profit, per fiscal year, % (line). Dashed line = 100% — every unit of profit arriving as cash.
Conversion100%
221%173%125%76%28%%41%FY16FY21FY26
221%173%125%76%28%%41%FY16FY21FY26

Why conversion sits at 88%: the cash cycle stretched 64 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 5.9× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹18,170 Cr of building over 3 years.

09 · Where the cash goes

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Zydus Lifesciences Ltd's cash conversion cycle runs 212 days in FY26, up from 148 days in FY21. Capital spending ran ₹18,170 Cr over the last 3 years. At FY26 sales of ₹27,148 Cr each day of that cycle holds about ₹74.4 Cr, so roughly ₹15,768 Cr sits inside the business at any moment.

FY26: debtors at 73 days, inventory at 282 days — roughly 9.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 212 days, looser than FY21's 148.

The full loop: cash goes out to suppliers and production on day 0; stock waits 282 days to sell; customers pay about 73 days after that; and suppliers themselves are paid at 142 days — netting out to the 212-day cycle.

In money terms: at FY26 sales of ₹27,148 Cr, each day of the cycle holds about ₹74.4 Cr — so the 212-day loop keeps roughly ₹15,768 Cr sitting inside the business at any moment.

FY26: a 212-day cash cycle Debtor days, inventory days, payable days and the cash conversion cycle by fiscal year. 13-year window.
+64 days vs FY21
Cash cycleInventory daysDebtor daysPayable days
30023517010439days212d282d73d142dFY14FY17FY20FY23FY26
30023517010439days212d282d73d142dFY14FY20FY26

On the investment side: capital spending of ₹18,170 Cr over the last 3 fiscal years against ₹3,088 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹3,698 Cr (FY26) — capacity paid for but not yet earning.

FY26: capex ₹13,386 Cr, work-in-progress ₹3,698 Cr Capital spending per fiscal year, ₹ Cr (bars); capital work-in-progress, ₹ Cr (line). Quarterly capital-spending history is not held for India — annual is the honest resolution.
a build-out
CapexWork-in-progress
14.5k10.8k7.2k3.6k0₹ Cr₹13,386₹3,698FY16FY18FY21FY23FY26
14.5k10.8k7.2k3.6k0₹ Cr₹13,386₹3,698FY16FY21FY26

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 21% and the ROIC − WACC spread is +1.1 pp.

10 · Return on capital

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Zydus Lifesciences Ltd earns a ROCE of 21% in FY26. That is up from a trough of 11% in FY20. Return on invested capital clears the cost of that capital by +1.1 percentage points, so growth here adds value rather than only size. The wiring behind it is 18.9% net margin on 0.54× asset turns.

FY26 ROCE is 21%, recovered from a FY20 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 18.9% net margin × 0.54× asset turns × 1.87× balance-sheet leverage ≈ 19.1% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 13.1% − 12.0% = a +1.1 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

FY26: ROCE 21% Return on capital employed by fiscal year, % (line); ROIC by fiscal year, % (line). 13-year window, dips included. Dashed line = the 12.0% cost of capital used on this page.
the climb back from FY20's 11%
ROCEROIC (annual)WACC
29%24%19%14%9.4%%21%14.5%FY14FY20FY26
29%24%19%14%9.4%%21%14.5%FY14FY20FY26
Q4 FY26: ROCE 15.9% (TTM) vs WACC 12.0% Trailing-twelve-month ROCE and ROIC, per quarter, %; dashed line = the cost of capital. Last 12 quarters, put on a trailing-twelve-month basis and anchored to the annual figure.
ROCE (TTM)ROIC (TTM)WACC
22%19%17%14%11%%15.9%18.6%Q1 FY24Q2 FY25Q4 FY26
22%19%17%14%11%%15.9%18.6%Q1 FY24Q2 FY25Q4 FY26

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.46.

11 · Debt

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Zydus Lifesciences Ltd carries total debt of ₹12,515 Cr against shareholder equity of ₹29,582 Cr as of Mar 26, a debt-to-equity of 0.42. On the annual view that ratio went from 0.22 in FY22 to 0.42 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹12,515 Cr against shareholder equity of ₹29,582 Cr — a debt-to-equity of 0.42. On the annual view, debt-to-equity went from 0.22 (FY22) to 0.42 (FY26). Read the returns on this page with that leverage in mind.

FY26: debt ₹12,515 Cr at 0.42× equity Total debt by fiscal year, ₹ Cr (bars); debt-to-equity, × (line). 5-year window.
Total debtDebt-to-equity
13.5k0.5×10.1k0.3×6.8k0.2×3.4k0.1×00.0×₹ Cr×₹12,5150.42×FY22FY24FY26
13.5k0.5×10.1k0.3×6.8k0.2×3.4k0.1×00.0×₹ Cr×₹12,5150.42×FY22FY24FY26
Mar 26: debt ₹12,515 Cr, debt-to-equity 0.42 Total debt per quarter, ₹ Cr (bars); debt-to-equity, × (line). Last 12 quarters. India reports the full balance sheet half-yearly, so the intervening quarter carries the prior reading forward.
Total debt (quarterly)Debt-to-equity
13.5k0.5×10.1k0.3×6.8k0.2×3.4k0.1×00.0×₹ Cr×₹12,5150.42×Jun 23Sep 24Mar 26
13.5k0.5×10.1k0.3×6.8k0.2×3.4k0.1×00.0×₹ Cr×₹12,5150.42×Jun 23Sep 24Mar 26

→ Who owns this, and are they adding or leaving? Next: Foreign institutions added 1.3 points over 8 quarters.

12 · Ownership

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 1.3 points of Zydus Lifesciences Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 6.9% of the company. Domestic institutions moved −1.3 points over the same window, to 11.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +1.3 points over 8 quarters to 6.9%; Domestic institutions: −1.3 points over 8 quarters to 11.3%; Promoters: +0.0 points over 8 quarters to 75.0%.

Why the register moved: foreign institutions drove it (+1.3 points), absorbed on the other side by domestic institutions (−1.3 points) — steady accumulation by institutions reading the same numbers this page reads.

Fiscal-year ends: promoters +0.0 pts from Mar 24 to Mar 26 Shareholding at each fiscal-year end (March quarter), % of the company. 3 year-ends held.
PromotersForeign inst.Domestic inst.Public
81%60%40%20%0.0%%75%7.0%11.2%6.9%Mar 24Mar 25Mar 26
81%60%40%20%0.0%%75%7.0%11.2%6.9%Mar 24Mar 25Mar 26
Foreign institutions added 1.3 points over 8 quarters Shareholding by holder class, % of the company, quarterly, last 13 quarters.
PromotersForeign inst.Domestic inst.Public
81%60%40%19%−1.6%%75.0%6.9%11.3%6.8%Jun 23Dec 24Jun 26
81%60%40%19%−1.6%%75.0%6.9%11.3%6.8%Jun 23Dec 24Jun 26

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

13 · Safety line

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Zydus Lifesciences Ltd: the Z-score reads 4.23. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 4.23 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 4.23.

Related companies · same sector · Pharma - Formulators Every company is compared on the shape of its own curves, not static ratios. The Revenue, EPS and ROCE columns each draw that company's last 12 quarters as a mini line of the ACTUAL level (trailing-twelve-month revenue and EPS, and the ROCE itself) — so a line that climbs is a business getting bigger, a line that sinks is one shrinking. The colour tracks the same line: green when it is rising or steadily healthy, amber when it is rolling over from a high (still elevated but turning down), red when it is falling, grey when flat or stuck. Colour and direction always agree — a green line never points down. The ROCE curve is the return on capital (annual readings for peers, so a slightly coarser line than the quarterly one at the top of this page). The Stage column then runs the same 12-quarter trajectory classifier used at the top of the page on each company and names where it sits. What lands a company in each bucket: CONSISTENT — growth stays positive across the window and returns are healthy (ROCE ≥ 15%, or ROE ≥ 12% for lenders); IMPROVING — profit or EPS fell into real decline, bottomed a few quarters back, and has climbed back to positive and held there; TURNING AROUND — the same kind of trough but more recent, with the latest quarters just lifting off it (an early, unconfirmed turn); TOPPING OUT — growth is still positive but decelerating hard from its own peak while returns have stopped rising; DETERIORATING — two or more growth curves are shrinking (latest below zero) and staying there, not one soft quarter; MIXED — the curves genuinely disagree, or no clean majority, so no single word fits; NO READ — fewer than eight usable quarters. It is a like-for-like read of every company against its own past, not a ranking against the group.
CompanyP/EMkt capRevenueEPSROCEStage
Zydus Lifesciences Ltd this page20.4×₹1.1L CrConsistent
Sun Pharmaceutical Industries Ltd37.5×₹4.7L CrImproving
Torrent Pharmaceuticals Ltd86.1×₹1.9L CrConsistent
Cipla Ltd31.8×₹1.1L CrDeteriorating
Lupin Ltd19.1×₹1.1L CrConsistent
Mankind Pharma Ltd51.4×₹1L CrTurning around
Dr Reddys Laboratories Ltd29.8×₹96,130 CrDeteriorating
Aurobindo Pharma Ltd25.1×₹88,979 CrMixed
Biocon Ltd182.0×₹70,672 CrDeteriorating
Alkem Laboratories Ltd27.6×₹67,357 CrMixed
Glenmark Pharmaceuticals Ltd21.0×₹61,858 CrNo read
Ipca Laboratories Ltd37.9×₹44,720 CrConsistent
Ajanta Pharma Ltd37.3×₹42,097 CrConsistent
J B Chemicals & Pharmaceuticals Ltd53.8×₹38,677 CrTopping out
Emcure Pharmaceuticals Ltd37.7×₹35,679 CrMixed
Wockhardt Ltd106.0×₹30,048 CrNo read
Rubicon Research Ltd102.0×₹25,141 CrNo read
ERIS Lifesciences Ltd30.7×₹19,409 CrTurning around
Caplin Point Laboratories Ltd29.2×₹18,753 CrConsistent
Natco Pharma Ltd11.6×₹16,504 CrTopping out
Alembic Pharmaceuticals Ltd21.4×₹15,678 CrTurning around
Corona Remedies Ltd64.7×₹12,923 CrNo read
Marksans Pharma Ltd26.7×₹11,161 CrConsistent
Akums Drugs & Pharmaceuticals Ltd40.3×₹10,818 CrNo read
Strides Pharma Science Ltd16.6×₹9,402 CrNo read
Suven Life Sciences Ltd₹8,929 CrNo read
FDC Ltd22.6×₹6,723 CrTurning around
Bliss GVS Pharma Ltd37.4×₹4,927 CrTurning around
RPG Life Sciences Ltd44.3×₹4,858 Cr
Gufic BioSciences Ltd59.2×₹3,799 CrNo read
Kwality Pharmaceuticals Ltd42.5×₹2,886 CrConsistent
Kwality Pharmaceuticals Ltd36.6×₹2,483 CrConsistent
Sai Parenterals Ltd166.0×₹2,366 Cr
Indoco Remedies Ltd₹2,247 CrNo read
Fredun Pharmaceuticals Ltd45.4×₹1,480 CrNo read
Amrutanjan Health Care Ltd22.8×₹1,472 CrMixed
Accent Microcell Ltd27.1×₹1,187 CrNo read
Lincoln Pharmaceuticals Ltd13.2×₹1,162 CrTurning around
Bajaj Healthcare Ltd19.3×₹1,088 CrNo read
Bharat Parenterals Ltd₹990 CrNo read
12 · Frequently asked questions

Frequently asked questions

What is Zydus Lifesciences Ltd's share price today?

Zydus Lifesciences Ltd trades at ₹1,144, +17.3% over the past year. The company is valued at ₹1,10,593 Cr. The stock sits at 98% of its 52-week range of ₹864–₹1,151, +15.5% versus its 200-day average. On the tape, the price is in a confirmed uptrend, 8 weeks in. — as of 24 July 2026.

What were Zydus Lifesciences Ltd's latest quarterly results?

Zydus Lifesciences Ltd reported revenue of ₹7,587 Cr and net profit of ₹1,341 Cr for the Mar 26 quarter. Revenue rose 16.2% and profit rose 7.8% year on year. Earnings per share were ₹12.65. The operating margin was 34.0%, 1.0 pp higher than a year earlier. — as of 24 July 2026.

What is Zydus Lifesciences Ltd's revenue?

Zydus Lifesciences Ltd reported revenue of ₹7,587 Cr in the Mar 26 quarter, +16.2% year on year. For the full FY26 fiscal year, revenue was ₹27,148 Cr (+16.8%). Over the last 10 years revenue compounded at 11.2% a year. — as of 24 July 2026.

What is Zydus Lifesciences Ltd's profit?

Zydus Lifesciences Ltd earned ₹1,341 Cr of net profit in the Mar 26 quarter, +7.8% year on year. Full-year FY26 profit was ₹5,124 Cr. The operating margin ran 34.0% in the latest quarter. — as of 24 July 2026.

What is Zydus Lifesciences Ltd's market cap?

Zydus Lifesciences Ltd's market capitalisation is ₹1,10,593 Cr at a share price of ₹1,144. Market cap is the share price multiplied by shares outstanding, so it is restated whenever the price moves. — as of 24 July 2026.

What is Zydus Lifesciences Ltd's P/E ratio?

Zydus Lifesciences Ltd trades at a P/E of 20.4×, at the 38th percentile of its own 10-year range, against a long-run median of 21.7×. This is a comparison with the stock's own history, not a value call — as of 24 July 2026.

Does Zydus Lifesciences Ltd pay a dividend?

Yes — Zydus Lifesciences Ltd's dividend payout was 2% of profit in FY26, and it recorded a payout in each of its last 13 reported fiscal years. This page holds the payout ratio, not a per-share amount. — as of 24 July 2026.

Is Zydus Lifesciences Ltd overvalued?

On its own history, Zydus Lifesciences Ltd looks mid-range against its own history: its P/E of 20.4× sits at the 38th percentile of its 10-year range (long-run median 21.7×). That is a percentile read against the stock's own past, not a price opinion or a direction call. One caveat: margins are the best this company has ever printed — cheap on record margins is not the same thing as cheap. — as of 24 July 2026.

Is Zydus Lifesciences Ltd growing?

Yes — Zydus Lifesciences Ltd is growing: latest-quarter revenue +16.2% year on year, profit +7.8%, and the margin +1.0 pp at 34.0%. The 10-year compound rates are 11.2% (revenue) and 10.1% (profit). The earnings engine currently reads: improving — as of 24 July 2026.

How is Zydus Lifesciences Ltd performing?

Zydus Lifesciences Ltd is in a confirmed uptrend, 8 weeks in. Its latest quarter's revenue rose 16.2% and profit rose 7.8% year on year. Against the NIFTY 500 it has been ahead on a trailing-13-week view for 28 weeks. This describes what the data did, not a rating. — as of 24 July 2026.

What stage is Zydus Lifesciences Ltd in?

Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 21.0% and holding. The read comes from the last 12 quarters of growth (revenue growth +16.8% latest, profit growth +9.7% latest, eps growth +11.4% latest) plus the ROCE curve, classified by deterministic rules — a trajectory read, not a buy or sell call — as of 24 July 2026.

Is Zydus Lifesciences Ltd in an uptrend?

Yes — the price is in a confirmed uptrend (week 8 of stage 2), trading +15.5% versus its 200-day average and at 98% of its 52-week range. Price stages cycle base → advance → top → decline, and the stage names where this stock sits in that cycle — as of 24 July 2026.

Is Zydus Lifesciences Ltd beating the market?

On recent form, yes — Zydus Lifesciences Ltd has been ahead of the NIFTY 500 on a trailing-13-week view for 28 straight weeks, the same metric the week-by-week ribbon on this page draws. Separately, on the cumulative view: over the last 10.3 years the stock moved +232% against the NIFTY 500's +274% — behind the index over the full window. — as of 24 July 2026.

Will Zydus Lifesciences Ltd's share price go up?

This page publishes no price forecast for Zydus Lifesciences Ltd. What it measures instead: the share price is ₹1,144, the price is in a confirmed uptrend 8 weeks in. Its P/E of 20.4× sits at the 38th percentile of its own 10-year range. — as of 24 July 2026.

Who owns Zydus Lifesciences Ltd?

Promoters hold 75.0% of Zydus Lifesciences Ltd, foreign institutions 6.9%, domestic institutions 11.3% and the public 6.8% (latest quarter). The biggest move on the register over the last two years: Foreign institutions added 1.3 points over 8 quarters. — as of 24 July 2026.

Does Zydus Lifesciences Ltd have too much debt?

It is moderate — Zydus Lifesciences Ltd's debt-to-equity is 0.46, and operating profit covers the interest bill 19×. FY26 borrowings were ₹12,496 Cr against equity of ₹27,112 Cr. Read the returns on this page with that leverage in mind — as of 24 July 2026.

What is Zydus Lifesciences Ltd's capex?

Zydus Lifesciences Ltd spent ₹18,170 Cr on capital expenditure over the last 3 fiscal years, a figure derived from the change in fixed assets plus depreciation. In FY26 alone that was ₹13,386 Cr, with ₹3,698 Cr in capital work-in-progress — capacity paid for but not yet earning. — as of 24 July 2026.

What is Zydus Lifesciences Ltd's cash flow?

Zydus Lifesciences Ltd generated ₹2,117 Cr of operating cash flow in FY26 and ₹−11,269 Cr of free cash flow after ₹13,386 Cr of capital spending. Reported profit that year was ₹5,124 Cr, so operating cash ran behind profit. Cash-flow resolution for India is annual. — as of 24 July 2026.

Is Zydus Lifesciences Ltd's profit real cash?

Yes — over the last 3 fiscal years, 88% of Zydus Lifesciences Ltd's reported profit arrived as operating cash. In FY26, operating cash was ₹2,117 Cr against reported profit of ₹5,124 Cr. The cash then goes mostly into building capacity. Cash-flow resolution is annual — as of 24 July 2026.

How financially safe is Zydus Lifesciences Ltd?

On the balance sheet, the Z-score reads 4.23 — above roughly 3 is safe, below roughly 1.8 is the distress zone. That sits well clear of trouble. — as of 24 July 2026.

Where is Zydus Lifesciences Ltd in its business cycle?

Zydus Lifesciences Ltd's FY26 operating margin was 31.0%, against a 13-year band of 17.0%–31.0%: the top of the band — a record year. Record profitability is late-cycle territory: every ratio flatters at the top, and the story leans on margins holding. The latest quarter ran 34.0%. Profitability versus a company's own long band is the cleanest cycle clock this page holds — as of 24 July 2026.

What could break the Zydus Lifesciences Ltd story?

Biggest watch item: margins are the best this company has ever printed — every ratio flatters at record profitability, so the whole story leans on margins holding. Mechanically, two Friday closes in a row below the 200-day average would end the price trend — that is the exit rule this page tracks — as of 24 July 2026.

Is Zydus Lifesciences Ltd a stock worth studying right now?

This is not investment advice. The machine read: Zydus Lifesciences Ltd's three tracks disagree. Price, valuation and the earnings engine each tell a different story — the next quarter or two settles it. The sharpest open question: the next one or two quarters of delivery. Every number on this page is drawn deterministically from the raw series, with no forecasts and no price opinions — as of 24 July 2026.

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