Zydus Lifesciences Q4 FY26: Profit up 9%, buyback

Shares jump to a fresh 52-week high

Zydus Lifesciences shares rallied sharply after the company reported a stronger March-quarter performance and announced a share buyback. On the NSE, the stock climbed more than 7% intraday to a fresh 52-week high of Rs 1,091 per share. Another reported print showed the stock rising 7.3% to Rs 1,093.65, also described as the highest level in more than a year and a 52-week high. On the BSE, the stock gained about 7% to touch Rs 1,091, before paring gains to trade up 5.52% at Rs 1,075.15 around 9:27 AM.

The rally followed the company’s Q4 FY26 (January to March 2026) results, which showed year-on-year growth in profit, revenue, and operating profit. Alongside the earnings, Zydus announced what it described as its biggest-ever buyback. The combination of headline growth and a large capital-return move shaped the day’s market reaction.

Q4 FY26 net profit rises, adjusted profit also reported higher

For Q4 FY26, Zydus Lifesciences reported consolidated net profit of Rs 1,272.5 crore. This was described across reports as an 8.7% to 9% year-on-year increase, compared with Rs 1,171 crore in the same quarter last year.

Separately, the company’s adjusted net profit was reported at Rs 1,592.9 crore for the quarter ended March 31, 2026. That adjusted number was described as a 14.6% rise year-on-year, and was linked to exceptional items during the quarter. One report also quantified a one-time charge of Rs 397.5 crore related to a Mirabegron litigation settlement, while noting that operating performance remained resilient.

Revenue growth accelerates in the March quarter

Revenue from operations rose more than 16% year-on-year to Rs 7,587 crore in Q4 FY26, compared with Rs 6,528 crore in the year-ago quarter. Another report quantified the revenue growth at 16.2% year-on-year.

The quarter’s growth was also linked to performance in specific segments. One report said growth was significantly fuelled by the company’s United States and MedTech segments. In India, the company reported that formulations revenue increased 14% year-on-year to Rs 1,752.8 crore from Rs 1,537.4 crore, driven by chronic therapies and super-speciality segments such as oncology and nephrology.

EBITDA up 20%, margin improves to 33.7%

Zydus reported EBITDA of Rs 2,554 crore in Q4 FY26, up over 20% year-on-year. The EBITDA margin improved to 33.7%.

A separate data point put the year-ago quarter EBITDA at Rs 2,125.5 crore and the margin at 32.6%, implying both absolute EBITDA growth and a margin expansion. The margin improvement was also described as a 110 basis-point expansion to 33.7%.

In another disclosure, excluding forex gains, EBITDA stood at Rs 1,909 crore with a margin of 25.2%. Even with this adjustment, the company’s profitability metrics were reported as stronger than what the market had anticipated in pre-result estimates.

Buyback announcement: Rs 1,100 crore at Rs 1,150 per share

Along with the Q4 FY26 results, Zydus Lifesciences announced a share buyback worth Rs 1,100 crore at a buyback price of Rs 1,150 per share. The buyback price was described as nearly a 13% premium over the stock’s previous closing price.

The size of the buyback was highlighted as the company’s biggest-ever. In practice, a buyback at a premium can support sentiment by signalling management’s confidence and returning capital to shareholders, even as investors assess the sustainability of earnings and margins.

How results compared with Street expectations

Multiple reports cited earnings beats against broker and poll expectations. One report said Q4 PAT was 27% above its estimates, while sales and EBITDA were 4% and 15% above estimates, respectively.

Another report said revenue, EBITDA, and PAT beat estimates by 9.5%, 19%, and 11%, respectively. A CNBC-TV18 poll estimate referenced in the coverage pegged PAT at Rs 997.5 crore and revenue at Rs 7,086 crore, both below the reported Rs 1,272.5 crore profit and Rs 7,587 crore revenue.

The same poll pegged EBITDA at Rs 1,632.6 crore and expected margin at 23%, compared with the reported EBITDA of Rs 2,554 crore and margin of 33.7%.

Key numbers at a glance

Market impact: price move, levels, and what traders tracked

The immediate market response was reflected in the stock printing new highs on the day of the results and buyback announcement. The intraday peak was reported around Rs 1,091 to Rs 1,093.65, implying a gain of more than 7% at the day’s high. Early trade also showed the stock giving up some gains, but still holding a mid-single digit rise at Rs 1,075.15.

For investors, the key short-term signals were the magnitude of the earnings beat, the step-up in margin to 33.7%, and the buyback price of Rs 1,150. The buyback premium to the prior close was called out as close to 13%, giving the market an additional reference point beyond the reported quarterly earnings.

Broker views and target price references

Coverage referenced Motilal Oswal as seeing about 6% upside. Separately, another note in the provided reports valued Zydus Lifesciences at 24 times 12-month forward earnings and arrived at a target price of Rs 1,045. Both references were cited in the broader coverage set, alongside the observation that the March-quarter performance was ahead of expectations.

Conclusion

Zydus Lifesciences’ Q4 FY26 showed year-on-year growth in profit and revenue, a rise in EBITDA to Rs 2,554 crore, and an EBITDA margin of 33.7%. The company also announced a Rs 1,100 crore buyback at Rs 1,150 per share, and the stock responded by hitting a fresh 52-week high around Rs 1,091 to Rs 1,093.65. Investors will track how the company executes the buyback and whether the improved profitability metrics sustain beyond the quarter, especially after adjusting for the reported one-time charge.