Zydus Lifesciences beats estimates, sees high-teens growth in FY27

Zydus Lifesciences beat street estimates, with its revenue for the final quarter of 2025-26 rising 16% and net profit, adjusted for exceptional items, 15% year-on-year.

The Ahmedabad-based drugmaker projected high-teens growth in 2026-27, the company’s top executive told investors in a post-earnings call on Tuesday.

For Q4FY26, its revenue from operations grew to ₹7,587 crore, while adjusted net profit was ₹1,593 crore. Ebitda grew 20% to ₹2,554.4 crore, with margin expanding 110 basis points to 33.7%. Ebitda is short for earnings before interest, taxes, depreciation and amortization.

A Bloomberg poll of analysts estimated the March-quarter's revenue at ₹7,024.4 crore and net profit at ₹946.4 crore.

For FY26, its revenue from operations stood at ₹27,148.4 crore, up 17% on-year, and adjusted net profit grew 15% to ₹5,456.4 crore. Ebitda was ₹84,751 crore, up 20% on-year, with a margin of 31.2%.

High-growth projection

“Looking forward, on the consolidated revenue, we’ll continue to see high teens growth for FY27. We expect that, in spite of a high base of FY26 for North America, we will still see single-digit growth in the North American business aided by the portfolio,” managing director Sharvil Patel said in a post-earnings investor call.

“In India, we have now consistently demonstrated better than market growth, and we think we will outperform the market by 200-400 basis points versus the current India pharmaceutical market (IPM),” said Patel, adding that the drugmaker expects to see continued growth momentum in its international markets business as well, which grew 45% on-year in Q4.

“As we pivot towards speciality, we are driving growth through multiple levers,” said Patel. The company has several products in the pipeline.

This includes products filed through the 505(b)(2) pathway in the US, which allows approval of new drug applications by relying partly on existing data rather than conducting studies from scratch in the US. Its rare disease portfolio is also seeing continued traction. In biosimilars, the company in-licensed two large molecules and is strengthening capabilities through its newly acquired manufacturing facilities from Agenus Inc in 2025.

Its recent acquisition of Assertio, a US-based pharmaceutical company focused on speciality and oncology supportive-care therapy for $166 million, will allow it to build a “highly differentiated high-margin speciality oncology business in the US”, added Patel.