Zydus Life jumps 5% on ₹1,100 crore share buyback; Q4 results beat street estimates

Zydus Life's results for the March quarter were better than expectations across parameters, even having adjusted for the exceptional items during the quarter.

By Gareema Bangad

(Photo Credit : CNBC-TV18 Library )

Shares of Zydus Lifesciences Ltd. gained over 5% on Tuesday, May 19, after the company approved a ₹1,100 crore share buyback along with reporting a stronger-than-expected March quarter performance, with profit, revenue and margins beating Street estimates.

Zydus Life's Buyback

The company’s board approved the buyback of up to 95.65 lakh equity shares at ₹1,150 apiece through the tender offer route. Promoters will also participate in the buyback, with May 29, 2026, fixed as the record date for determining shareholder eligibility.

Price of the buyback is at a premium of 16% in comparison to the company's closing price on Monday.

Zydus Life In Q4

Zydus Lifesciences reported a consolidated net profit of ₹1,272.5 crore for the March quarter, up 8.7% year-on-year and ahead of the CNBC-TV18 poll estimate of ₹997.5 crore.

Its revenue rose 16.2% year-on-year to ₹7,587 crore from ₹6,528 crore, also beating the CNBC-TV18 poll estimate of ₹7,086 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 20.2% to ₹2,554 crore from ₹2,125.5 crore in the year-ago quarter, while EBITDA margin expanded to 33.7% from 32.6%. The EBITDA performance was sharply above the CNBC-TV18 poll estimate of ₹1,632.6 crore, while the margin exceeded expectations of 23%.

Excluding forex gains, EBITDA stood at ₹1,909 crore with a margin of 25.2%, both still higher than what the street had anticipated.

The company’s standalone financials included an exceptional item gain of ₹1,068 crore during the quarter related to impairment in the value of investment in Zydus VTEC Ltd., a wholly owned subsidiary. The quarter also included a one-time expense of ₹397.5 crore towards the Mirabegron litigation settlement.

Managing Director of Zydus Life, Dr Sharvil Patel, said, “We closed FY26 on a strong note, delivering on our commitments — both on revenue growth and profitability.”

“We are confident our pipeline will drive overall growth visibility while future growth engines begin to deliver. Our near-term priorities are clear: maintain consistent quality standards, integrate our recent acquisitions, and capture synergies swiftly,” he added.

Geographic and business-wise performance

The company said its India formulations revenue rose 14% year-on-year to ₹1,752.8 crore from ₹1,537.4 crore, driven by strong growth in chronic therapies and super-speciality segments such as oncology and nephrology. The India business accounted for 24% of consolidated revenue.

However, the North America formulations revenue declined 5.7% year-on-year to ₹2,952.3 crore from ₹3,130.7 crore, although it rose 5% sequentially. In constant currency terms, the business reported revenue of $323 million. The segment contributed 40% of consolidated revenue.

International markets formulations revenue jumped 45% YoY to ₹804.1 crore from ₹554.7 crore, supported by strong demand across emerging markets and Europe.

Consumer wellness revenue surged 61% YoY to ₹1,463.3 crore from ₹908.1 crore, aided by growth in the international business, including the Comfort Click acquisition.

The MedTech business reported revenue of ₹327.5 crore compared to ₹1.7 crore a year ago, while API revenue declined 5.5% year-on-year to ₹121.9 crore.

During the quarter, the company filed three ANDAs, received approvals for nine ANDAs and launched six new products in the US generics market. It also launched Zycubo for ultra-rare Menkes disease in the US.

The board also recommended a final dividend of ₹1 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting scheduled for August 11, 2026.

Shares of Zydus Life are trading 5.3% higher on Tuesday at ₹1,047 after the earnings announcement. The stock is up 14% so far in 2026.