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Zydus Lifesciences Limited · Research view

Zydus Lifesciences Limited

NSE: ZYDUSLIFEBSE: 532321ISIN INE010B01027Face value ₹1standalone
₹1,145
−4.18% · 2026-10-01 · 52-wk ₹861–₹1,212
Financials to FY2026 · 5 years of history · prices to 2026-10-01consolidatedstandalone
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.

Revenue growth+16.8%Net profit growth+9.6%

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
₹11,484 cr
FY2026 net profit
₹3,560 cr
Net worth
₹23,672 cr
Total debt
₹7,431 cr
EPS (basic)
₹35.38
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
₹'000 cr05101520036REVENUENET PROFIT8k858FY229k1,529FY2311k3,442FY2415k5,775FY2511k3,560FY26
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
+9.5%over 4 years
Revenue growth
−24.0%vs last year
Net profit growth
−38.4%vs last year
Change in net profit since FY22
+315%

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
₹'000 cr02579012REVENUENET PROFIT5k920Q2 '255k1,026Q3 '257k1,244Q4 '257k1,521Q1 '266k1,239Q2 '267k1,023Q3 '268k1,341Q4 '268k990Q1 '27
RevenueNet profit
QuarterRevenueYoYNet profitYoYNet margin
Q2 FY255,237—920—17.6%
Q3 FY255,269+17.0%1,026+29.9%19.5%
Q4 FY256,528+18.0%1,244−0.2%19.1%
Q1 FY266,574+5.9%1,521+2.6%23.1%
Q2 FY266,123+16.9%1,239+34.6%20.2%
Q3 FY266,865+30.3%1,023−0.3%14.9%
Q4 FY267,587+16.2%1,341+7.8%17.7%
Q1 FY278,017+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
0%5%10%15%20%25%30%35%40%45%50%55%60%48.7%27.1%FY22FY23FY24FY25FY26
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
48.7%
5-year range
26.3–55.8%
ROE FY2026
15.9%
ROCE FY2026
16.6%

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
₹'000 cr010203013kFY2214kFY2316kFY2421kFY2524kFY26
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
0k2k4k6k1k858FY221k2kFY232k3kFY243k6kFY252k4kFY26
Operating cash flowNet profit
Total debt
₹7,431 cr
Operating cash flow ÷ net profit
0.63×FY2026
Free cash flow
₹1,351 cr
Current ratio
2.91×

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%

GLENMARK27.5%LUPIN23.1%LAURUSLABS22.7%TORNTPHARM21.4%MANKIND17.0%ZYDUSLIFE16.8%DIVISLAB12.8%SUNPHARMA11.2%BIOCON10.9%AUROPHARMA6.1%DRREDDY3.2%CIPLA2.2%

EBITDA margin

ZYDUSLIFE · 3rd of 12 · set median 28.7%

DIVISLAB37.4%SUNPHARMA33.7%ZYDUSLIFE33.1%LUPIN33.1%TORNTPHARM31.9%GLENMARK29.6%MANKIND27.8%LAURUSLABS26.9%CIPLA24.0%DRREDDY23.2%BIOCON22.4%AUROPHARMA21.8%

Return on equity

ZYDUSLIFE · 2nd of 12 · set median 14.4%

LUPIN26.9%ZYDUSLIFE18.3%LAURUSLABS17.7%TORNTPHARM17.0%DIVISLAB16.2%SUNPHARMA14.7%GLENMARK14.1%MANKIND12.5%CIPLA11.7%DRREDDY11.5%AUROPHARMA9.9%BIOCON1.1%

P/E ratio

ZYDUSLIFE · 2nd of 12 · set median 36.3×

LUPIN16.7×ZYDUSLIFE25.1×AUROPHARMA26.2×DRREDDY31.5×CIPLA32.4×SUNPHARMA35.8×GLENMARK36.7×MANKIND50.5×TORNTPHARM74.8×DIVISLAB84.2×LAURUSLABS98.5×BIOCON144.4×
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
0k₹1,14520222023202420252026
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
Net profit2.6%/yrShare price23.0%/yr
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
0305070100OVERSOLDOVERBOUGHT47.4
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
MetricFY22FY23FY24FY25FY26
Revenue7,9828,73210,81915,11611,484
Total income8,1619,28011,90415,81313,152
EBITDA2,0973,0035,1448,4335,593
Profit before tax1,1642,0324,2407,4454,382
Net profit8581,5293,4425,7753,560
EPS (₹)8.415.134.057.435.4
Net worth13,24113,63915,71721,19023,672
Total debt2,6634,8236,1748,3397,431
Operating cash flow1,3111,0781,9993,1142,234
Free cash flow7694201,4342,2571,351
Key ratios — consolidated
RatioFY22FY23FY24FY25FY26
Growth
Revenue growth YoY—9.423.939.7-24.0
Profit growth YoY—78.2125.167.8-38.4
Profitability
EBITDA margin %26.334.447.555.848.7
Net margin %10.516.528.936.527.1
Return on equity %6.511.423.431.315.9
Return on capital %10.214.623.030.816.6
Leverage & cash
Debt to equity0.200.350.390.390.31
Cash flow ÷ profit1.530.710.580.540.63
Current ratio1.702.573.111.952.91
Financials: BSE Integrated Filing inline XBRL (SEBI taxonomy), normalised to standard metric keys. Prices: NSE end-of-day, raw OHLC preserved; a corporate-action factor produces the adjusted series. The insight engine writes factual observations from fixed rules — it does not make recommendations. Not investment advice.