Zydus Lifesciences Shares Hit Fresh 52-Week High After Strong Q4FY26 Results – Buyback Update

Shares of Zydus Lifesciences surged nearly 7% on May 20 to hit a fresh 52-week high, even as the broader market traded weak. At around 9:45 a.m. IST, the Nifty 50 was down 0.40%, while the Sensex declined 0.44%.

Zydus Lifescience Q4FY26 Earnings Show Strong Growth

Zydus Lifesciences reported revenue from operations of ₹7,587 crore in Q4FY26, compared with ₹6,527.9 crore in Q4FY25, reflecting a YoY growth of 16.2%. Sequentially, revenue rose 10.5% from ₹6,864.5 crore in Q3FY26.

EBITDA stood at ₹2,554.4 crore, up 20.2% from ₹2,125.5 crore a year ago and 40.6% higher than ₹1,816.4 crore in Q3FY26. EBITDA margin improved to 33.7% from 32.6% in Q4FY25 and 26.5% in Q3FY26, marking expansions of 110 basis points YoY and 720 basis points QoQ.

Adjusted profit before tax came in at ₹2,057.2 crore, up 8.8% YoY and 43% QoQ. Adjusted net profit rose 14.6% YoY to ₹1,592.9 crore from ₹1,390.5 crore and increased 43.4% sequentially from ₹1,110.5 crore. The company adjusted earnings for a one-time Mirabegron litigation settlement expense of ₹397.5 crore.

Zydus Lifescience FY26 Revenue Crosses ₹27,000 Crore

For FY26, revenue from operations rose 16.8% to ₹27,148.4 crore from ₹23,241.5 crore in FY25.

EBITDA increased 20.1% to ₹8,475.1 crore, while EBITDA margin improved to 31.2% from 30.4%. Adjusted profit before tax stood at ₹7,137.7 crore, up 14.3%, while adjusted net profit rose 15% to ₹5,456.4 crore.

India and Consumer Wellness Businesses Lead Performance

The pharma business generated revenue of ₹5,643.6 crore in Q4FY26, up 4.9% YoY. India formulations revenue rose 14% to ₹1,752.8 crore, supported by strong branded and chronic portfolio growth.

North America formulations revenue declined 5.7% YoY to ₹2,952.3 crore, though it improved 5.3% sequentially. The company reported US business revenue of $323 million in constant currency terms and during the quarter filed 3 ANDAs, received approvals for 9 ANDAs and launched 6 products in the US generics market.

International markets formulations revenue surged 45% YoY to ₹804.1 crore, while consumer wellness revenue jumped 61.1% to ₹1,463.3 crore.

MedTech revenue stood at ₹327.5 crore, compared with ₹1.7 crore a year ago, while APIs revenue declined 5.5% to ₹121.9 crore.

Pipeline Progress, Acquisition and Buyback

R&D spending for FY26 stood at ₹2,273.2 crore, or 8.4% of revenue, while organic capex came in at ₹1,714.5 crore. The company maintained a healthy balance sheet with net debt-to-equity at 0.16x.

Zydus said Desidustat received approval in China for renal anemia and also secured USFDA Orphan Drug Designation for sickle cell disease. The company also received DCGI approval for Phase III trials of anti-malarial candidate Zintrodiazine.

Zydus signed a definitive agreement to acquire US-based Assertio Holdings for $166 million to strengthen its specialty business in the US market.

The board recommended a 100% dividend for FY2025-26 and approved a buyback worth up to ₹1,100 crore at ₹1,150 per share, a 16% premium to the May 18 closing price. The buyback size translates to around 95.65 lakh shares.