Zydus Lifesciences (ZYDUSLIF IN) – Q3FY26 Result Update – US sales hinges on timely high value launches – Accumulate
Published on 11 Feb 2026
Zydus Lifesciences (ZYDUSLIF) Q3 EBITDA was largely in line with our estimates. We believe base business remains steady with mild erosion. 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 flat EPS CAGR over FY25-28E. 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 broadly remain unchanged. We maintain our ‘Accumulate’ rating with TP of Rs1,020, valuing at 22x FY28E EPS.
