Zydus Lifesciences (ZYDUSLIF IN) – Q2FY26 Result Update – US sales and margins to taper off – Accumulate
Published on 07 Nov 2025
Zydus Lifesciences (ZYDUSLIF) Q2 EBITDA was largely in line with our estimates. We believe base business remains steady with mild erosion; gRevlimid volumes likely to further tapering off. Though, 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 decline in FY27E given sales erosion in some of key products and thereby expect 7% EPS CAGR decline over FY25-27E. Mgmt have guided for 2-3 high value launches over FY27E/28E, timely launch will be key to sustaining momentum in US sales. Our FY27/28E EPS stands increased by 3%. We maintain our ‘Accumulate’ rating with TP of Rs1,020, valuing at 23x Sept 2027E EPS.
