Zydus Lifesciences Ltd Q4 FY26 Earnings Call: Guides High-Teens Revenue Growth, Record 33.7% EBITDA Margin

Zydus Lifesciences Ltd held its Q4 FY26 earnings call on May 19, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter & Full-Year Performance

• Rs.75.9 billionQ4 FY25-26 consolidated revenue, up16% YoYand11% QoQ, with EBITDA ofRs.25.6 billion(+20% YoY, +41% QoQ) and adjusted net profit ofRs.15.9 billion(+15% YoY, +43% QoQ).
• 33.7%Q4 EBITDA margin — a record — expanding110 bps YoYand720 bps QoQ; full-year FY25-26 EBITDA margin reached31.2%(+80 bps YoY).
• Rs.271.5 billionfull-year FY25-26 consolidated revenue, up17% YoY, with EBITDA ofRs.84.8 billionand adjusted net profit ofRs.54.6 billion(+15%).
• Net debt/EBITDAstood at0.5xas of March 31, 2026, despite inorganic investments including Comfort Click and Amplitude Surgical.
• Oncology injectable facilityat Ahmedabad SEZ received an EIR (establishment inspection report) for the pre-approval inspection conducted November 2025.
• Management described FY25-26 as "remarkable" with "robust double-digit growth and record operating profitability" and noted the base business (ex-inorganic) also delivered strong double-digit growth.

FY27 Guidance: High-Teens Growth with Back-Half Weighting

• High-teensconsolidated revenue growth guided for FY26-27; North America expected to deliversingle-digitgrowth despite a high FY25-26 base.
• India businessexpected to outperform the IPM by200–400 bpsin FY26-27, driven by innovative portfolio scaling, biosimilar launches, and improving chronic share (chronic portfolio at46.3%in IQVIA MAT March 2026, +620 bps in 3 years).
• International marketsgrew40%+in FY25-26 (Q4: +45% YoY toRs.8.0 billion); management expects momentum to continue in FY26-27, supported by branded focus and a strong pipeline.
• Consumer wellnessbusiness (including Comfort Click) grew61% YoYtoRs.14.6 billionin Q4 FY25-26; domestic skin/hair care +39.7%, food/nutrition +9.4%; international like-to-like growth of31.4%.
• Medical devicesrevenue ofRs.3.3 billionin Q4 FY25-26; management expects steady performance in coming quarters driven by geographic expansion and cost synergies(no numeric guidance provided).
• US Q4 FY25-26 revenuewas ~$320M; management expects erosion from competition, with a base around$300M–$310Mfor FY26-27, and growth back-half weighted — no major changes in the first two quarters.

Rolvedon, Biosimilars, and the Assertio Acquisition

• Top-3 playerin the US generic market, backed by a differentiated portfolio built in-house and through partnerships; Q4 US/Canada formulations atRs.29.5 billion(+5% QoQ), driven by base volume expansion, new launches (3 ANDAs filed, 9 approvals, 6 launches), and specialty/rare disease traction.
• Assertio acquisitionanchored byRolvedon(US FDA-approved long-acting GCSF, ~4% volume share, same-day administration) — to be integrated into Zydus's existing supportive oncology commercial platform; synergies expected rather than incremental costs.
• Another 505(b)(2) supportive oncology productfiled with partner RK; approval and launch expected in9–12 months(within FY26-27).
• US biosimilars— regulatory framework improvement has enabled licensing and co-development; management cited a "key milestone in next 3 years" (by ~FY28-29), with "real scale-up expected by FY29-FY30."
• Specialty business (505(b)(2) pipeline)remains very small as a proportion of total revenue of Rs.1.3B (FY25-26); meaningful scale-up is expected only fromFY27-28. Sentinel (3 approved drugs) is now break-even and profitable.
• Ranibizumab launchexpected by end of FY26-27; specialty business expected to see good momentum from FY27 onwards, with stronger momentum in FY28.
• Mirabegron— management noted a royalty charge in addition to the$75Mamortization charge; the royalty rate was not disclosed.

Saroglitazar, Desidustat, and Next-Generation Biologics

• Saroglitazar NDAfor the previous indication was filed in Q4 FY25-26; management is awaiting FDA acceptance and will disclose the goal date thereafter. Zydus plans to commercialise Saroglitazar for PBC in the US on its own; co-partnering will be considered for Europe and other countries.
• China launch for Saroglitazarexpected inQ2 FY26-27. The India Phase 4 trial (52-week follow-up) is continuing recruitment, with closure expected in the next couple of quarters (within FY26-27).
• Phase 2 PBC clinical trial datafor Saroglitazar will be presented or published atEASL 2026(exact year confirmed by management).
• Desidustattablets received approval from Chinese regulators for renal anemia treatment (second-largest pharma market globally); US FDA granted orphan drug designation for sickle cell disease.
• Novel anti-malarial candidate Zintrodaizinereceived DCGI approval for Phase 3 trials in uncomplicated malaria in India.
• Biosimilar and biologic pipeline— initiated Phase 3 trial of a second biosimilar ADC in India; Phase 1 trial for one novel biologic candidate and preclinical studies for another; in-licensed Premrozumab biosimilar FYB206 completed clinical development, a step toward US FDA filing.
• Progerin SLCD011— entered an agreement with PRG SNT (Korean company) to license this therapy for Hutchinson-Gilford Progeria Syndrome, making it the company's second therapy intended for that condition.

Margin Guidance, Capex, and Leverage Discipline

• >24%EBITDA margin guided for FY26-27, factoring in competition and Saro launch expenses; R&D spend assumed at>8%of FY27 revenue (current quarterly R&D run rate ~Rs.700 crores, split ~50% generics/VAG, ~40%+ NCE/biologics/vaccines).
• Rs.1,500 croresCAPEX guidance for FY26-27; quarterly depreciation isRs.550 crores, including a capitalized licensing fee for the Mirabegron settlement that will be charged off up to September 2027, after which depreciation will reduce.
• Additional USD 70 millionwill be invested in commercialisation for Saroglitazar (Saro) in FY26-27.
• Net debtcould rise to ~Rs.7,000 croresin FY27 from ~Rs.4,500 crores (likely FY26 end) after buyback and potential bolt-on acquisition; management is comfortable with net debt to EBITDA of ~1x.
• Operating cash flow— management described working capital management as "best-in-class" and is comfortable with current levels despite increases during FY26; operating cash flow for FY26 declined sharply to ~Rs.2,000 crores(vs. EBITDA of ~Rs.7,000 crores) partly due to a settlement payout, capex, and incremental working capital from acquisitions.
• Geopolitical environmentis unpredictable — costs for freight, logistics, and raw materials are rising, but management is managing through better sourcing and cost optimization. Rupee depreciation provides a cash flow benefit due to the export base(no specific quantification of cost coverage).

Outperformance, Oncology Leadership, and EM Expansion

• India branded formulationsgrew15% YoYin Q4 FY25-26, outpacing the market; chronic portfolio share reached 46.3% (+620 bps in 3 years). Launched world's first biosimilar of Nivolumab (Tista) and first indigenously developed biosimilar of Aflibercept (Anaira), plus Semaglutide injection under multiple brands.
• Largest Indian oncology player— management noted oncology revenue has crossedRs.800+ crores(period unspecified), driven by government scheme implementation, higher cancer incidence, and strong traction from new launches (Pertuzumab, Nivolumab, oral oncology) where Zydus was first to market.
• Pricing dynamics— management clarified that in the Indian formulation business, "pricing generally deflates" and growth is driven by faster volume growth rather than value growth.
• Semaglutide strategy— Zydus adopted a co-partnering approach in India with Lupin and Torrent to increase share of voice; as of Q4 FY25-26, Zydus is#2in market share, with partners also gaining strong share.
• International marketsgrew ~40%in FY25-26, driven by all-around regional growth, Europe's recovery, and faster-than-expected scale-up of new country launches; Q4 FY25-26 international revenues atRs.8.0 billion, up45% YoY.
• Trade generics— management considers the model "neutral" to Zydus, as their own trade generic business is a small part of the overall portfolio and treated as a "cash cow." The company's innovation pipeline and brand focus are expected to allow continued outperformance.

Outperformance, Oncology Leadership, and EM Expansion

• India branded formulationsgrew15% YoYin Q4 FY25-26, outpacing the market; chronic portfolio share reached 46.3% (+620 bps in 3 years). Launched world's first biosimilar of Nivolumab (Tista) and first indigenously developed biosimilar of Aflibercept (Anaira), plus Semaglutide injection under multiple brands.
• Largest Indian oncology player— management noted oncology revenue has crossedRs.800+ crores(period unspecified), driven by government scheme implementation, higher cancer incidence, and strong traction from new launches (Pertuzumab, Nivolumab, oral oncology) where Zydus was first to market.
• Pricing dynamics— management clarified that in the Indian formulation business, "pricing generally deflates" and growth is driven by faster volume growth rather than value growth.
• Semaglutide strategy— Zydus adopted a co-partnering approach in India with Lupin and Torrent to increase share of voice; as of Q4 FY25-26, Zydus is#2in market share, with partners also gaining strong share.
• International marketsgrew ~40%in FY25-26, driven by all-around regional growth, Europe's recovery, and faster-than-expected scale-up of new country launches; Q4 FY25-26 international revenues atRs.8.0 billion, up45% YoY.
• Trade generics— management considers the model "neutral" to Zydus, as their own trade generic business is a small part of the overall portfolio and treated as a "cash cow." The company's innovation pipeline and brand focus are expected to allow continued outperformance.