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Zydus Lifesciences Posts Strong Q4 Results Despite Legal Costs
Zydus Lifesciences reported a consolidated net profit of ₹1,272 crore for the fourth quarter ending March 2026. This marks an 8.7% increase from the previous year, even with a ₹397.5 crore charge for settling Mirabegron litigation. Excluding this one-time expense, the adjusted net profit grew by 15% to ₹1,592.9 crore, highlighting the company's underlying operational strength.
Shareholder Returns Boosted by Buyback and Dividend
In a move to reward shareholders and signal confidence, Zydus Lifesciences' board has approved a share buyback program worth up to ₹1,100 crore. The buyback price is set at ₹1,150 per share, representing a premium of about 16% over the market price at the time of the announcement. Additionally, a final dividend of ₹1 per equity share for fiscal year 2026 has been proposed, pending shareholder approval.
Key Divisions Fuel 18% Sales Growth
Total product sales revenue surged by 18% to ₹7,434 crore for the quarter. The consumer wellness division was a major growth driver, with sales climbing 54% to ₹1,483 crore, boosted by strong performance in skin, hair care, and food and nutrition products. The international formulations segment also showed significant growth, up 45% to ₹804 crore. Medical technologies contributed a 9% increase in revenue, reaching ₹327 crore.
Indian Formulations Lead Pharmaceutical Segment Growth
The overall pharmaceuticals business grew revenue by 3.1% to ₹5,776 crore. The Indian formulations segment saw a notable 14% expansion, particularly in chronic therapies like oncology and nephrology. While the North America formulations business, which accounts for 40% of total revenue, experienced a 6% year-on-year decline, it showed a 5% sequential increase, suggesting a potential market stabilization.
Full-Year Financials and Investment in Growth
For the full fiscal year 2026, Zydus Lifesciences achieved an 18% rise in product sales revenue, reaching ₹26,718 crore. Consolidated net profit increased by 11% to ₹5,040 crore, or 15% to ₹5,456 crore after adjusting for exceptional items. EBITDA grew 20% to ₹8,475 crore, with an improved EBITDA margin of 31.2%. The company invested ₹2,273 crore in R&D (8.4% of revenues) and ₹1,714 crore in capital expenditures to support future growth.