Zydus Lifesciences (ZYDUSLIF IN) – Q4FY26 Result Update – Strong FY27 guidance – Accumulate
Published on 20 May 2026
Zydus Lifesciences (ZYDUSLIF) Q4 EBITDA was sharply above our estimates aided by higher revenues across key markets. 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 remain largely flat over FY26-28E given sales erosion in some of key products and thereby expect flat EPS CAGR adjusted for forex over FY26-28E. 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 INR 1,080, valuing at 23x FY28E EPS.
