Zydus Lifesciences Limited · Research view

Zydus Lifesciences Limited

NSE: ZYDUSLIFEBSE: 532321ISIN INE010B01027Face value ₹1consolidated

₹1,145

−4.18% · 2026-10-01 · 52-wk ₹861–₹1,212

Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidated standalone

Section 02 · Synthesis

What stands out?

The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.

StrengthConcernWatchContext

WatchTalking point

Profit and cash flow diverged

Reported profit rose 9.6% but operating cash flow fell 68.8% — worth investigating whether the profit is being collected.

Importance 69 / 95 · cash quality

WatchTalking point

Profit lagging revenue

Revenue grew 16.8% but profit grew 9.6%, so the company kept less of each rupee of revenue as profit.

Importance 63 / 95 · growth

WatchTalking point

Growing, but light on cash

Revenue grew 16.8% but only 0.41× of reported profit came through as operating cash.

Importance 62 / 95 · cash quality

ContextTalking point

Higher returns, lower valuation

ROE of 18.3% beats the pharmaceuticals median (14.4%) while P/B (3.89×) sits below it (4.65×).

Importance 62 / 95 · valuation

Section 03 · The company

Who is this company?

Classified by the exchange under Healthcare › Healthcare › Pharmaceuticals & Biotechnology › Pharmaceuticals.

Market cap: ₹1.15 L cr
FY2026 revenue: ₹27,148 cr
FY2026 net profit: ₹5,124 cr
Net worth: ₹29,582 cr
Total debt: ₹11,770 cr
EPS (basic): ₹50.09
Listed: NSE · BSE
Reporting: Ind-ASApr–Mar

Peer set used on this page: 12 pharmaceuticals.

Section 04 · Business performance

Is the business growing?

Revenue & net profit — FY22 to FY26₹ crore · consolidated

RevenueNet profit

Watch

Revenue grew 16.8% but profit grew 9.6%, so the company kept less of each rupee of revenue as profit.

Rule PROFIT_SLOWER_THAN_REVENUE

Revenue growth per year: +15.5%over 4 years
Revenue growth: +16.8%vs last year
Net profit growth: +9.6%vs last year
Change in net profit since FY22: +11%

Revenue compounded at 15.5% a year over 4 years (₹15,265 → ₹27,148).

Revenue grew 16.8% year on year (FY2025 → FY2026).

Section 05 · Recent activity

What changed recently?

Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.

Concern

Q1 FY27 net profit was ₹990 cr, down 34.9% from ₹1,521 cr a year earlier.

Rule QTR_PROFIT_GROWTH_YOY

Watch

Q1 FY27 net profit declined 34.9% while revenue grew 22.0% vs the same quarter last year — a gap of 56.9 percentage points.

Rule QTR_PROFIT_VS_REVENUE_GROWTH

Strength

Q1 FY27 revenue was ₹8,017 cr, up 22.0% from ₹6,574 cr in Q1 FY26 a year earlier.

Rule QTR_REVENUE_GROWTH_YOY

A. Quarterly results

Latest quarters — Q2 '25 to Q1 '27₹ crore · consolidated

RevenueNet profit

Quarter	Revenue	YoY	Net profit	YoY	Net margin
Q2 FY25	5,237	—	920	—	17.6%
Q3 FY25	5,269	+17.0%	1,026	+29.9%	19.5%
Q4 FY25	6,528	+18.0%	1,244	−0.2%	19.1%
Q1 FY26	6,574	+5.9%	1,521	+2.6%	23.1%
Q2 FY26	6,123	+16.9%	1,239	+34.6%	20.2%
Q3 FY26	6,865	+30.3%	1,023	−0.3%	14.9%
Q4 FY26	7,587	+16.2%	1,341	+7.8%	17.7%
Q1 FY27	8,017	+22.0%	990	−34.9%	12.4%

B. TTM snapshot

Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters

Revenue: ₹28,592 crTTM
EBITDA: ₹8,777 crTTM
EBIT: ₹7,052 crTTM
PBT: ₹6,007 crTTM
Net profit: ₹4,593 crTTM

C. Corporate actions

24 Jul 2026DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share

29 May 2026BuybackBuy Back of Shares

25 Jul 2025DividendFinal Dividend - Rs. - 11.0000 — ₹11.00/share

26 Jul 2024DividendFinal Dividend - Rs. - 3.0000 — ₹3.00/share

23 Feb 2024BuybackBuy Back of Shares

28 Jul 2023DividendFinal Dividend - Rs. - 6.0000 — ₹6.00/share

28 Jul 2022DividendFinal Dividend - Rs. - 2.5000 — ₹2.50/share

1 Jun 2022BuybackBuy Back of Shares

28 Jul 2021DividendFinal Dividend - Rs. - 3.5000 — ₹3.50/share

23 Mar 2020DividendInterim Dividend - Rs. - 3.5000 — ₹3.50/share

25 Jul 2019DividendFinal Dividend - Rs. - 3.5000 — ₹3.50/share

31 Jul 2018DividendDividend - Rs. - 3.5000 — ₹3.50/share

16 Mar 2017DividendInterim Dividend - Rs. - 3.2000 — ₹3.20/share

17 Mar 2016DividendInterim Dividend - Rs. - 3.2000 — ₹3.20/share

6 Oct 2015Stock splitStock Split From Rs.5/- to Rs.1/- — 5:1

30 Jul 2015DividendDividend - Rs. - 12.0000 — ₹12.00/share

17 Jul 2014DividendDividend - Rs. - 9.0000 — ₹9.00/share

11 Jun 2013DividendInterim Dividend - Rs. - 7.5000 — ₹7.50/share

26 Jul 2012DividendDividend - Rs. - 7.5000 — ₹7.50/share

7 Jul 2011DividendDividend - Rs. - 6.2500 — ₹6.25/share

15 Jul 2010DividendDividend - Rs. - 5.0000 — ₹5.00/share

5 Apr 2010Bonus issueBonus issue 1:2 — 2:3

16 Jul 2009DividendDividend - Rs. - 4.5000 — ₹4.50/share

29 Dec 2008Scheme of arrangementScheme of Arrangement

10 Jul 2008DividendDividend - Rs. - 4.5000 — ₹4.50/share

Section 06 · Business performance

Is it becoming more profitable?

Margins — FY22 to FY26% of revenue · consolidated

EBITDA marginNet margin

Strength

EBITDA margin of 33.1% is the widest in 4 years (prior range 23.4% to 31.5%).

Rule MARGIN_AT_MULTI_YEAR_HIGH

EBITDA margin now: 33.1%
5-year range: 23.4–33.1%
ROE FY2026: 18.3%
ROCE FY2026: 21.4%

ROE of 18.3% is well above the pharmaceuticals median of 14.4%.

EBITDA margin improved from 31.5% to 33.1% of revenue.

Section 07 · Financial health

Is financial health improving?

Net worth — FY22 to FY26₹ crore · consolidated

Net worth (shareholders' funds)

Watch

Reported profit rose 9.6% but operating cash flow fell 68.8% — worth investigating whether the profit is being collected.

Rule PROFIT_UP_CASH_DOWN

Operating cash flow vs net profit₹ crore · FY22–FY26

Operating cash flowNet profit

Total debt: ₹11,770 cr
Operating cash flow ÷ net profit: 0.41×FY2026
Free cash flow: ₹−1,253 cr
Current ratio: 1.27×

Revenue grew 16.8% but only 0.41× of reported profit came through as operating cash.

Debt-to-equity of 0.40× is the highest in 4 years (prior range 0.03× to 0.22×).

Operating cash flow was only 0.41× reported profit (FY2026).

Free cash flow has been positive in 4 of the last 5 years.

Debt-to-equity rose from 0.12× to 0.40× year on year.

Section 08 · Relative position

How does it compare with peers?

Ranked against 12 pharmaceuticals (FY2026, consolidated).

Revenue growth

ZYDUSLIFE · 6th of 12 · set median 14.8%

EBITDA margin

ZYDUSLIFE · 3rd of 12 · set median 28.7%

Return on equity

ZYDUSLIFE · 2nd of 12 · set median 14.4%

P/E ratio

ZYDUSLIFE · 2nd of 12 · set median 36.3×

Context

ROE of 18.3% beats the pharmaceuticals median (14.4%) while P/B (3.89×) sits below it (4.65×).

Rule STRONG_RETURNS_AT_DISCOUNT

P / E: 25.1×TTM to Jun 26
P / B: 3.9×latest book
P / S: 4.0×TTM sales
Earnings yield: 4.0%TTM to Jun 26

On the trailing twelve months. Last full year: P/E 22.5× · P/S 4.2× · ROE 18.3%.

Section 09 · The stock

How has the stock performed?

Adjusted close — 2022-03 to 2026-10₹ per share · split / bonus adjusted

Watch

Over 4 years the stock returned 23.0% a year while profit compounded at 2.6% a year.

Rule STOCK_RAN_AHEAD

Business vs stock — 5-year compound annual rate

1-year return: +15.5%
3-year return: +86.2%
5-year return: —
From 52-wk high: −5.5%

Section 10 · Technical data

What does the technical data say?

Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.

vs 50-day avg: Above₹1,142
vs 200-day avg: Above₹1,008
RSI (14): 47.4neutral
MACD histogram: 2.3
From 52-wk high: −5.5%
From 52-wk low: +33.1%
30-day volatility: 26.7%ann.
6-month return: +29.2%

RSI (14) · 0–10047.4 — neutral

Section 11 · Open questions

What should I investigate further?

Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.

Watch
Profit and cash flow diverged
Reported profit rose 9.6% but operating cash flow fell 68.8% — worth investigating whether the profit is being collected.
PROFIT_UP_CASH_DOWN · conviction 69
Watch
Profit lagging revenue
Revenue grew 16.8% but profit grew 9.6%, so the company kept less of each rupee of revenue as profit.
PROFIT_SLOWER_THAN_REVENUE · conviction 63
Watch
Growing, but light on cash
Revenue grew 16.8% but only 0.41× of reported profit came through as operating cash.
GROWTH_WITH_WEAK_CASH · conviction 62
Watch
Stock has run ahead of the business
Over 4 years the stock returned 23.0% a year while profit compounded at 2.6% a year.
STOCK_RAN_AHEAD · conviction 58
Concern
Leverage at a multi-year high
Debt-to-equity of 0.40× is the highest in 4 years (prior range 0.03× to 0.22×).
LEVERAGE_AT_MULTI_YEAR_HIGH · conviction 55
Concern
Weak cash conversion
Operating cash flow was only 0.41× reported profit (FY2026).
WEAK_CASH_CONVERSION · conviction 54
Concern
Leverage rising
Debt-to-equity rose from 0.12× to 0.40× year on year.
LEVERAGE_INCREASED_YOY · conviction 44

Data coverage is complete — 5 years of financials (FY2022–FY2026), full P&L, balance sheet and cash-flow statement, sector metrics fully mapped.

Section 12 · Reference

The numbers

The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.

Income & balance sheet — ₹ crore, consolidated
Metric	FY22	FY23	FY24	FY25	FY26
Revenue	15,265	17,237	19,547	23,242	27,148
Total income	15,490	17,424	19,832	23,511	27,658
EBITDA	3,565	4,047	5,668	7,328	8,985
Profit before tax	2,838	2,590	4,809	6,027	6,621
Net profit	4,618	2,092	3,973	4,673	5,124
EPS (₹)	43.8	19.3	38.1	45.0	50.1
Net worth	19,054	19,688	22,102	26,358	29,582
Total debt	4,196	1,163	769	3,170	11,770
Operating cash flow	2,078	2,689	3,228	6,777	2,117
Free cash flow	911	1,697	2,345	5,116	−1,253

Key ratios — consolidated
Ratio	FY22	FY23	FY24	FY25	FY26
Growth
Revenue growth YoY	—	12.9	13.4	18.9	16.8
Profit growth YoY	—	-54.7	89.9	17.6	9.6
Profitability
EBITDA margin %	23.4	23.5	29.0	31.5	33.1
Net margin %	29.8	12.0	20.0	19.9	18.5
Return on equity %	24.2	10.8	19.0	19.3	18.3
Return on capital %	12.3	15.1	22.4	24.5	21.4
Leverage & cash
Debt to equity	0.22	0.06	0.03	0.12	0.40
Cash flow ÷ profit	0.45	1.29	0.81	1.45	0.41
Current ratio	1.55	1.81	2.14	1.89	1.27