Zydus Lifesciences Exceeds Earnings Expectations, Forecasts High-Teen Growth in FY27

Zydus Lifesciences Exceeds Street Estimates with 16% Revenue Growth in Q4FY26

Zydus Lifesciences, a prominent Ahmedabad-based drugmaker, has reported impressive financial results for the final quarter of 2025-26, exceeding street estimates with a 16% year-on-year growth in revenue. The company's net profit, adjusted for exceptional items, also saw a 15% year-on-year increase. In a post-earnings call on Tuesday, the company's top executive revealed ambitious projections for the upcoming fiscal year 2026-27.

Key highlights from the Q4FY26 results include revenue from operations growing to ₹7,587 crore, while adjusted net profit reached ₹1,593 crore. The company's Ebitda (earnings before interest, taxes, depreciation, and amortization) witnessed a 20% growth to ₹2,554.4 crore, with the margin expanding by 110 basis points to 33.7%. For the full fiscal year 2025-26, Zydus Lifesciences reported a revenue from operations of ₹27,148.4 crore, up 17% year-on-year, and adjusted net profit grew 15% to ₹5,456.4 crore.

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Looking ahead, Zydus Lifesciences has projected high-teens growth in 2026-27, despite a challenging high base of FY26 for North America. The company expects single-digit growth in the North American business, driven by its portfolio. In India, Zydus Lifesciences aims to outperform the market by 200-400 basis points versus the current India pharmaceutical market (IPM). The company's international markets business also witnessed a 45% year-on-year growth in Q4.

As the company pivots towards speciality products, it is driving growth through multiple levers. Zydus Lifesciences has several products in the pipeline, including those filed through the 505(b)(2) pathway in the US. The company's rare disease portfolio is also seeing continued traction, and its recent acquisition of Assertio, a US-based pharmaceutical company, will enable it to build a highly differentiated high-margin speciality oncology business in the US.