Zydus Lifesciences Limited (ZYDUSLIFE) AI Stock Analysis

• Market Cap: ₹900.53B
• Dividend Yield: 1.19%
• Average Volume (3M): 33.86K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.68
• Revenue Growth: 14.01%
• EPS Growth: 14.62%
• Country: IN
• Employees: 26,921
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 12.30
• Shares Outstanding: 1,006,234,000
• 10 Day Avg. Volume: 33,597
• 30 Day Avg. Volume: 33,862
• PEG Ratio: 1.05
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 3.80
• P/FCF Ratio: 17.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹965.00
• Price Target Upside: 4.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹1,095.00 ▲(18.79% Upside)

Zydus Lifesciences' strong financial performance is the most significant factor, supported by robust revenue and profit growth, a healthy balance sheet, and strong cash flow generation. Technical analysis presents mixed signals, with bearish momentum offset by neutral RSI and moving averages. Valuation is fair, with a moderate P/E ratio and dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and product demand, supporting long-term business sustainability and profitability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling strategic investments and debt management, which supports long-term growth.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability, reducing risk and providing a solid foundation for sustainable growth and operational resilience.

Negative Factors

High Total Liabilities

High total liabilities may strain financial resources and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Potential Risk from Liabilities

While mitigated by strong equity, high liabilities can still pose risks to financial health, affecting the company's ability to withstand economic downturns.

No Recent Corporate Events

Lack of recent corporate events or strategic initiatives may indicate missed opportunities for growth or innovation, potentially impacting long-term competitiveness.

Zydus Lifesciences Limited Business Overview & Revenue Model

Company Description

Zydus Lifesciences Limited engages in the research, development, production, marketing, distribution, and sale of pharmaceutical products in India, the United States, Europe, Latin America, the Asia Pacific, and Africa. The company operates in Pharmaceuticals and Consumer Products segments. It offers finished dosage human formulations comprising generics, branded generics, and specialty formulations, including biosimilars and vaccines; active pharmaceutical ingredients; consumer wellness products; and products in the therapeutic areas of pain management, neurology, dermatology, liver diseases, and other areas. The company also provides consumer wellness products, such as Complan; EverYuth, a range of skincare products; Nycil; Glucon-D glucose powder; Nutralite; Nutralite Doodhshakti, a portfolio of dairy products; and various other products. In addition, the company offers a pipeline of biological products in the areas of oncology, autoimmune disease, nephrology, ophthalmology, inflammation, rheumatology, hepatology, infectious disease, etc. Further, it engages in the investment, animal health and veterinary, pharmacy retail, and manpower supply and administration activities. The company was formerly known as Cadila Healthcare Limited and changed its name to Zydus Lifesciences Limited in February 2022. Zydus Lifesciences Limited was founded in 1952 and is based in Ahmedabad, India.

How the Company Makes Money

Zydus Lifesciences generates revenue primarily through the sale of pharmaceutical formulations and active pharmaceutical ingredients (APIs) to various markets, including India and international markets. The company has a robust product portfolio that includes branded generics and over-the-counter (OTC) products, which contribute significantly to its earnings. Revenue also comes from the development and commercialization of biosimilars, which are biologic medical products highly similar to already approved reference products. Collaborations and partnerships with other pharmaceutical companies and research institutions for the development of new drugs and therapies further enhance its revenue streams. Additionally, Zydus Lifesciences invests in research and development, which helps in introducing innovative products that meet market demands, boosting overall sales and profitability.

Zydus Lifesciences Limited Financial Statement Overview

Summary

Zydus Lifesciences demonstrates strong financial performance with impressive revenue and profit growth, a healthy balance sheet with low leverage, and robust cash flow generation. The high total liabilities pose a potential risk, but overall financial health remains strong.

Income Statement

Zydus Lifesciences has shown strong growth in its revenue and profitability. The gross profit margin stands at 72.7%, indicating efficient cost management. Net profit margin improved to 19.5%, reflecting enhanced profitability. Revenue growth rate is impressive at 18.9%, showing positive growth momentum. EBIT and EBITDA margins are also robust at 56.9% and 29.7%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet displays healthy financial stability, with a low debt-to-equity ratio of 0.13, suggesting low leverage. The return on equity is strong at 18.9%, indicating effective use of equity. The equity ratio is also substantial at 64.4%, demonstrating a strong equity base. However, the high level of total liabilities could pose potential risks.

Cash Flow

Cash flow analysis shows a strong position with a free cash flow growth rate of 118.1%, indicating significant improvement in cash generation. The operating cash flow to net income ratio is 1.50, suggesting robust cash flow generation relative to net earnings. The free cash flow to net income ratio is 1.12, further validating strong cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.08B	232.41B	195.47B	172.37B	151.10B	144.03B
Gross Profit	168.66B	167.03B	131.54B	107.67B	94.24B	94.60B
EBITDA	66.99B	68.30B	52.57B	35.34B	31.70B	34.15B
Net Income	45.72B	45.26B	38.59B	19.60B	44.87B	21.34B
Balance Sheet
Total Assets	0.00	372.02B	292.81B	257.56B	277.95B	238.85B
Cash, Cash Equivalents and Short-Term Investments	56.37B	78.08B	13.58B	11.92B	35.05B	11.27B
Total Debt	0.00	32.13B	8.04B	11.95B	42.21B	46.08B
Total Liabilities	-263.58B	108.43B	71.79B	60.68B	87.42B	89.55B
Stockholders Equity	263.58B	239.53B	198.29B	175.16B	170.00B	129.92B
Cash Flow
Free Cash Flow	0.00	50.64B	23.21B	16.58B	9.02B	24.39B
Operating Cash Flow	0.00	67.77B	32.28B	26.89B	21.04B	32.93B
Investing Cash Flow	0.00	-83.72B	-14.75B	11.71B	-10.00B	-7.22B
Financing Cash Flow	0.00	20.14B	-17.79B	-44.00B	-8.68B	-25.49B

Zydus Lifesciences Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 921.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZYDUSLIFE, the sentiment is Negative. The current price of 921.8 is above the 20-day moving average (MA) of 916.26, below the 50-day MA of 930.70, and below the 200-day MA of 945.24, indicating a bearish trend. The MACD of -6.02 indicates Negative momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 33.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ZYDUSLIFE.

Zydus Lifesciences Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	74 Outperform	₹1.01T	17.21	―	0.63%	14.10%	9.72%
ZYDUSLIFE	72 Outperform	₹900.53B	18.30	―	1.19%	14.01%	14.62%
LUPIN	72 Outperform	₹996.48B	23.03	―	0.57%	15.49%	64.37%
CIPLA	68 Neutral	₹1.18T	21.76	―	0.87%	6.93%	21.55%
TORNTPHARM	66 Neutral	₹1.34T	62.67	―	0.84%	9.11%	18.76%
MANKIND	59 Neutral	₹908.07B	51.56	―	0.04%	23.22%	-19.19%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Zydus Lifesciences Limited Corporate Events

Zydus Lifesciences Opens Special Six-Month Window for Re-Lodgement of Physical Share Transfers

Zydus Lifesciences Limited has announced, via newspaper publication, the opening of a special six-month window from July 7, 2025 to January 6, 2026 for re-lodgement of transfer requests for physical shares, in line with a Securities and Exchange Board of India (SEBI) circular issued on July 2, 2025. This facility applies to physical share transfer requests originally lodged before April 1, 2019 that were rejected and returned due to documentation or process deficiencies, allowing investors who missed the earlier March 31, 2021 deadline to resubmit with proper documents through the company or its registrar and share transfer agent, with transfers to be completed only in demat form and no requests accepted after January 6, 2026.

Zydus Lifesciences Ties Up With Myriad Genetics to Bring Advanced Cancer-Risk Tests to India

Zydus Lifesciences has signed an exclusive agreement with US-based Myriad Genetics to introduce a suite of advanced cancer-risk assessment and prognostic diagnostic tests in India, including the MyRisk Hereditary Cancer Test, MyChoice HRD Plus for ovarian cancer, and Prolaris for prostate cancer. The collaboration aims to expand access to precision oncology by providing clinicians and patients with more accurate tools to assess hereditary cancer risks, understand tumour biology, predict disease progression and tailor personalised treatment plans, thereby strengthening diagnostic infrastructure, clinician education and potentially improving clinical outcomes for cancer patients across the country.

Zydus Lifesciences Secures Shareholder Approval for Fundraising Initiative

Zydus Lifesciences Limited announced the successful passage of a special resolution to approve fund-raising activities and the issuance of securities, following a postal ballot process conducted through remote e-voting. The resolution received overwhelming support, with 99.89% of votes in favor, indicating strong shareholder backing for the company’s strategic financial initiatives. This decision is expected to enhance Zydus Lifesciences’ financial flexibility and support its growth objectives, potentially impacting its market positioning and stakeholder interests positively.

Zydus Lifesciences Issues Notice on Lost Share Certificate

Zydus Lifesciences Limited has announced the loss of a share certificate belonging to a shareholder, as published in the Financial Express. The company has issued a notice that if no objections are received within seven days, it will proceed to issue a duplicate share certificate, cautioning the public against dealing with the lost certificate.

Zydus Lifesciences Releases Unaudited Financial Results for Q2 2025

Zydus Lifesciences Limited announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, published in the Financial Express, highlight the company’s financial performance and are available on various platforms, including the company’s website and stock exchanges. This publication provides stakeholders with insights into Zydus’s financial health and operational progress, potentially impacting investor confidence and market positioning.

Zydus Lifesciences Completes Full Acquisition of Amplitude Surgical

Zydus Lifesciences Limited has completed the acquisition of Amplitude Surgical SA, France, through its wholly owned subsidiary, Zydus MedTech France SAS. With the acquisition of the remaining 14.4% of shares, Zydus MedTech France now fully owns Amplitude Surgical, enhancing its strategic positioning in the medical technology sector. This acquisition signifies Zydus’s commitment to expanding its footprint in the European market and strengthening its portfolio in the medical devices industry.

Zydus Lifesciences Gains Health Canada Approval for Mesalamine Suppositories

Zydus Lifesciences Limited has received approval from Health Canada for its generic Mesalamine suppositories, used in the treatment of mildly to moderately active ulcerative proctitis. This approval is expected to enhance Zydus’s market presence in Canada, where the product had annual sales of 4.86 million CAD, and it will be manufactured at their facility in Ahmedabad, India.

Zydus Lifesciences Issues Notice on Lost Share Certificate

Zydus Lifesciences Limited has announced the loss of a share certificate belonging to one of its shareholders, as published in the Financial Express. The company has issued a notice that it will issue a duplicate share certificate if no objections are received within seven days, advising the public to refrain from dealing with the lost certificate.