Transcript of the post results earnings call held on May 19, 2026
ZYDUSLIFE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Zydus Lifesciences delivered strong Q4 FY26 with consolidated revenues of Rs 75.9 billion (up 16% YoY) and EBITDA margin of 33.7%. Full year FY26 revenue stood at Rs 271.5 billion with 17% growth and highest ever EBITDA margin of 31.2%. Management guided for FY27 consolidated revenue growth in high teens, with India business expected to outperform market by 200-400 basis points. However, FY27 EBITDA margin is expected to exceed 24% (down from 31.2% in FY26), citing competition from Revlimid and Mirabegron generics and expenses for Saro commercialization (Rs 70 crore additional investment). US business is guided for single-digit growth despite high base. Key developments include Chinese approval for Desidustat for renal anemia, FDA orphan drug designation for Desidustat in sickle cell disease, and proposed acquisition of Assertio Holdings for specialty oncology. R&D guidance is 8% of revenue with capex of Rs 1,500 crore for FY27.
While revenue growth remains strong, the margin guidance of above 24% for FY27 represents significant compression from 31.2% in FY26, which could weigh on the stock despite robust topline performance. The pending Assertio acquisition and specialty pipeline expansion are positive for long-term growth but require monitoring for integration costs and debt levels.