In , Zydus Lifesciences Ltd (Pharma - Formulators) is outperforming Nifty 500 with +7.2% relative strength. Fundamentals: Weak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Product Launches: 40 to 45 plus
“Beyond that obviously, we have plans to launch 40 to 45 plus products in FY’27 and we’ll continue to have a large growth trajectory going forward as well.”
What: Rare Disease Approvals: 3 products
“With this approval, Zycubo has become the first and only therapy approved for the treatment of Menkes disease... We now have 3 rare disease products being marketed by Sentynl.”
What: International Growth: 38%
“And I would say also that all the new markets that we entered like UK... all of them have significantly tracked better than expectations.”
What: International Markets Growth of 38%
“International markets formulation business further accelerated its growth trajectory and posted revenues of ₹7.9 billion, with a strong year-on-year growth of 38%.”
Earnings deceleration risks from management commentary
Trigger: The trial started in February 2026 and the outcome is uncertain.
Management view: Management is participating in court-directed mediation while the trial proceeds.
Monitor: litigation
Trigger: Regulatory changes in labor laws required a one-time adjustment.
Impact: PAT impact: Included in exceptional items
Management view: The impact has been accounted for in the current quarter's adjusted profit.
Monitor: labor
Key quotes from recent conference calls
“You mentioned that we would be able to maintain 26% plus margin for this entire year. Is the guidance intact for the entire year... because in the first half, we have done around 32%. [Previous Operating Margin guidance]”
“Yes, we will see 25 plus launches... 25 plus launches for this entire year? [Previous Product Launches guidance]”
“Looking ahead, we are particularly optimistic about the upcoming NDA filing for our molecule Saroglitazar in the US market. [Initiative: Saroglitazar US NDA Filing]”
“So, in the next 2-3 years, say, we would have a meaningful Bio CDMO business... it will be little higher than [100 million]. [Initiative: Bio CDMO Scaling]”
Headline numbers from the latest earnings call
Revenue
₹68.6 billion
Why: Growth was driven by sustained volume expansion in the US and robust performance in the consumer wellness business following the Comfort Click acquisition.
Revenue growth accelerated significantly due to the full consolidation of recent acquisitions and strong base business performance.
EBITDA
₹18.2 billion
Why: Operating profitability remained strong despite the inclusion of lower-margin acquired businesses like Comfort Click.
Margins remained resilient at 26.5%, slightly above the 26% guidance despite acquisition-related cost pressures.
PAT
₹11.1 billion
Why: Net profit was impacted by exceptional expenses related to the new labor code and acquisition-related costs.
Adjusted PAT growth was more modest than EBITDA due to higher interest costs and exceptional items.
Other Highlights
• US business registered revenues of ₹28 billion, up 16% year-on-year.
• Consumer Wellness revenues grew 113% to ₹9.6 billion due to Comfort Click consolidation.
• International markets formulation business posted revenues of ₹7.9 billion, up 38% year-on-year.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
ANDA Approvals (Quarterly)
8 approvals
Why: Increased efficiency in the US generics pipeline.
North America Revenue Share
40.8%
Why: Driven by 16% YoY growth in the North America business reaching ₹28 billion.
R&D as % of Sales
7.5%-8%
Why: Guidance maintained despite quarterly lumpiness due to clinical trials.
India Chronic Portfolio Share
45.3%
Why: Chronic segment continued to grow at a faster pace driving overall India business growth.
US Base Price Erosion
Single-digit
Why: Stable base business environment.
Net Debt
₹3,000 crores
Why: Increase due to large recent acquisitions like Amplitude and Comfort Click.
Vaccine Revenue Target (3-4 years)
₹1,000+ crores
Why: Driven by tender wins like MR and Typhoid with UNICEF/PAHO.
US Volume Growth
11%
Why: Outperforming the market which grew at 1%.
Forward-looking targets from management for Near future
Revenue Growth Target
20%
OPM Guidance
23%
20%+
REAFFIRMED 23% plus margin for Q4 FY26.
US volume growth expected to continue.
Guidance Changes
Q4 Margin: 26% (Full Year) → 23% plus
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +30% | +15% | Stable |
| PAT (Net Profit) | 0% | +0% | Stable |
| OPM | 26.0% | 0 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Zydus Lifesciences Ltd's latest quarterly results (Dec 2025) show
Zydus Lifesciences Ltd's profit is declining with an stable trend.
Zydus Lifesciences Ltd's revenue growth trend is stable.
Zydus Lifesciences Ltd's operating margin is volatile.
Zydus Lifesciences Ltd's long-term compounding rates
Zydus Lifesciences Ltd's earnings growth is stable with mixed signals on a sequential basis.
Zydus Lifesciences Ltd's trailing twelve month (TTM) performance
Zydus Lifesciences Ltd appears fairly valued based on our fair value analysis.
Zydus Lifesciences Ltd's current PE ratio is 17.9x.
Zydus Lifesciences Ltd's current PE is 17.9x.
Zydus Lifesciences Ltd's price-to-book ratio is 3.6x.
Zydus Lifesciences Ltd is rated Weak with a fundamental score of 38.61/100. This score is calculated from objective financial metrics
Zydus Lifesciences Ltd has a debt-to-equity ratio of N/A.
Zydus Lifesciences Ltd's return ratios over recent years
Zydus Lifesciences Ltd's operating cash flow is positive (FY2025).
Zydus Lifesciences Ltd's current dividend yield is 1.20%.
Zydus Lifesciences Ltd's shareholding pattern (Mar 2026)
Zydus Lifesciences Ltd's promoter holding has remained stable recently.
Zydus Lifesciences Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Zydus Lifesciences Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Zydus Lifesciences Ltd has 4 key growth catalysts identified from recent earnings analysis
Zydus Lifesciences Ltd has 2 key risks worth monitoring
In Q3 FY26, Zydus Lifesciences Ltd's management highlighted
Zydus Lifesciences Ltd's management has provided the following forward guidance for Near future
Zydus Lifesciences Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Zydus Lifesciences Ltd may be worth studying
Zydus Lifesciences Ltd investment thesis summary:
Zydus Lifesciences Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
