Zydus Lifesciences (ZYDUSLIF IN) – Q2FY27 Result Update – Higher opex to weigh on margins – ACCUMULATE
Published on 05 Nov 2026
Zydus Lifesciences (ZYDUSLIF) Q2 EBITDA was largely in line with our estimates aided by higher revenues across key markets. The company has managed transition well of gRevlimid sales decline with new niche launches. Further company is working on a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars and vaccines, they are expected to materialize over the next 2–3 years. We expect US sales to growth at 10% CAGR over FY26-28E despite sales erosion in some of key products. Mgmt have guided for 2-3 high value launches over FY27E/28E, timely launch will be key to sustaining momentum in US sales. Our FY28/29E EPS stands cut by 4-8%. We maintain our ‘Accumulate’ rating with TP of INR 1,200, valuing at 24x Sept 2028E EPS.
