Zydus Lifesciences Limited has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a 16.2% year-on-year increase in revenue from operations to Rs. 75,870 mn for Q4 FY26, while net profit rose 8.7% to Rs. 12,725 mn. For the full year FY26, revenue grew 16.8% to Rs. 2,71,484 mn and net profit increased 11.4% to Rs. 50,400 mn.

Key Board Decisions

The Board of Directors approved the audited financial results and recommended a dividend of Re. 1 per equity share (100%) for FY2025-26, subject to shareholder approval at the Annual General Meeting scheduled for August 11, 2026. The Board also approved a buyback of equity shares for an aggregate amount up to Rs. 11,000 mn at a price of Rs. 1,150 per share.

Operational Performance

EBITDA for Q4 FY26 stood at Rs. 25,544 mn, a 20.2% increase from the previous year, with margins expanding by 110 basis points to 33.7%. R&D investments for the quarter were Rs. 6,982 mn, accounting for 9.2% of revenues. The Consumer Wellness business led growth with a 61.1% YoY increase, while the India Formulations business grew 14% YoY.

The company noted that adjusted profit for the quarter excluded exceptional expenses related to a Mirabegron litigation settlement and impairment charges. Net Debt to Equity ratio as of March 31, 2026, was 0.16x.

Two prominent brokerages have shared their updated assessments of Zydus Life Science following a strong quarterly performance, with JPMorgan maintaining a cautious stance and Jefferies expressing greater optimism backed by a higher target price. The company has also outlined detailed FY27 guidance covering revenue growth, margins, capital expenditure, and segment-wise performance expectations.

FY27 Management Guidance: Revenue, Margins, and Investments

Zydus Life expects consolidated revenue to grow in the high teens for FY27, with the North American business anticipated to grow in the single digits. India's branded formulations are projected to exceed market growth by 200 to 400 basis points. The company also expects strong growth in international markets and consumer wellness.

On the profitability front, FY27 EBITDA margins are projected to go beyond 24%, even after accounting for competition from Mirabegron and launch expenses for Saro. R&D costs are estimated at over 8%. The following table summarises the key guidance parameters shared by management:

JPMorgan Maintains Neutral Rating with ₹1050 Target

JPMorgan has retained its Neutral rating on Zydus Life, setting a target price of ₹1050. The brokerage acknowledged a strong Q4 beat characterised by broad-based growth and meaningful margin expansion. The firm also took note of the company's FY27 guidance, which points to high-teens revenue growth and EBITDA margins exceeding 24%.

Despite the positive operational momentum, JPMorgan flagged the anticipated erosion of Mirabegron revenues beginning September 2027 as a key risk to monitor. On the earnings front, the brokerage upgraded its FY27 earnings estimate by 10%, reflecting the improved near-term outlook.

Jefferies Reiterates Buy with ₹1200 Target

Jefferies has maintained its Buy rating on Zydus Life with a target price of ₹1200, reflecting a more constructive view on the company's growth trajectory. The brokerage highlighted several drivers behind its positive stance, including strong US specialty traction, a sustainable US base business, steady performance in the India segment, and robust international growth. Jefferies also pointed to the company's strong pipeline of first-to-file (FTF) products and innovative offerings as key catalysts. The brokerage upgraded its FY28 EPS estimate by 14%, attributing the revision to contributions expected from new product launches.

Diverging Views Reflect Balanced Market Perspective

The contrasting ratings from JPMorgan and Jefferies reflect differing assessments of Zydus Life's risk-reward profile. While both brokerages acknowledge the strong Q4 results and an improving earnings outlook, JPMorgan's Neutral stance underscores caution around medium-term headwinds such as Mirabegron erosion, whereas Jefferies' Buy recommendation is anchored in confidence around pipeline execution and new launch momentum across geographies. The company's detailed FY27 guidance — spanning revenue targets, margin commitments, capex plans, and biosimilars expansion — provides additional context for investors evaluating the stock's near-to-medium-term trajectory.