Zydus Lifesciences share price jumps over 6% after Q4 results. Should you buy or sell?

Zydus Lifesciences share price surged over 6% on Wednesday, 20 May, after the company reported strong Q4FY26 earnings and announced a share buyback plan. The pharmaceutical major posted a 14.6% year-on-year rise in consolidated net profit to ₹1,592.9 crore for the quarter ended 31 March, supported by robust growth in its consumer wellness business.

Revenue from operations rose to ₹7,587 crore from ₹6,527.9 crore in the year-ago period. The pharma business reported revenue of ₹5,643.6 crore, up 4.9% YoY, while the consumer wellness segment recorded sharp growth with revenue increasing to ₹1,463.3 crore from ₹908.1 crore a year ago.

The company’s board approved a share buyback worth up to ₹1,100 crore at ₹1,150 per share and also recommended a final dividend of Re 1 per equity share, subject to shareholder approval.

Zydus Lifesciences Managing Director Sharvil Patel said the company closed FY26 on a strong note, delivering on its commitments across both revenue growth and profitability.

Patel added that the company remains confident about its growth visibility, supported by a strong product pipeline and emerging future growth drivers. Patel said the company’s near-term focus would remain on maintaining consistent quality standards, integrating recent acquisitions and swiftly capturing synergies.

Patel also noted that Zydus’ strong balance sheet provides the flexibility to continue investing in and strengthening its businesses.

Should you buy, sell or hold?

According to Choice Equity Broking, Zydus Lifesciences is expected to maintain high-teen revenue growth in FY27, supported by strong performance in domestic and international markets. The brokerage said upcoming launches such as Semaglutide, Desidustat and Tishtha are likely to further aid growth momentum.

Choice Equity also noted that the company’s recently announced acquisition of US-based speciality and oncology-focused firm Assertio has not been factored into its near-term revenue and profit estimates, given the acquisition is expected to contribute less than 5% to overall revenue initially.

However, the brokerage expects EBITDA margins to moderate to around 24% in FY27 due to higher R&D spending, operating costs related to Assertio and increased competition in Mirabegron.

Accordingly, the brokerage revised its FY27 and FY28 earnings estimates downward by 13% and 1.7%, respectively. It maintained an ‘ADD’ rating on the stock while revising the target price to ₹1,120, based on 18x FY28 estimated earnings per share.

According to Nuvama Institutional Equities, FY28 estimates for Zydus Lifesciences have seen a meaningful upgrade, although the brokerage noted that the stock has already witnessed a strong run-up. Nuvama revised its FY28 revenue, EBITDA, and PAT estimates upward by 13%, 14% and 4%, respectively.

Following the revision, the brokerage upgraded the stock to a ‘HOLD’ rating and raised its target price to ₹1,050 from ₹900 earlier. The revised target price is based on a blended valuation approach combining price-to-earnings (PE) and sum-of-the-parts (SOTP) methodologies.

Zydus Lifesciences share price today

Zydus Lifesciences share price today opened at ₹1,056.15 apiece on the BSE, the stock touched an intraday high of ₹1,083, and an intraday low of ₹1,044.05.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said Zydus Lifesciences continues to witness strong bullish momentum, with the stock gaining more than 6% on Wednesday and rising over 21% so far this month. He noted that the rally is backed by strong volumes and follows a weekly breakout after a prolonged consolidation phase.

According to Bhosale, the stock has now moved above its September 2025 swing high, indicating that the ongoing uptrend could continue in the near term. However, he advised investors to adopt a “buy on dips” strategy, highlighting the ₹1,020– ₹1,040 zone as an immediate support area following the breakout. On the upside, he expects the stock to potentially move towards ₹1,250 in the near term.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.