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Zydus Life ends higher after Q4 PAT rises 9% YoY; board approves Rs 1,100 cr buyback
(19 May 2026, 17:42)
Profit before exceptional item and tax (PBT) increased 8.75% YoY to Rs 2,057.2 crore in Q4 FY26. During the quarter, the company reported an exceptional item of Rs 397.5 crore, primarily on account of a one-time expenditure related to the Mirabegron litigation settlement.

EBITDA stood at Rs 2,554.4 crore in Q4 FY26, registering the growth of 20.2% compared with Rs 2,125.5 crore in Q4 FY25. EBITDA margin improved to 33.7% in Q4 FY26 as against 32.6% in Q4 FY25. The company's organic capital expenditure for the quarter stood at Rs 357.7 crore.

Revenue from India formulation business jumped 14% YoY to Rs 1,752.8 crore, contributing 24% to consolidated revenue. Branded business grew faster than the market with 15% YoY growth.

North America formulation business registered revenues of Rs 2,952.3 crore, down 6% YoY and accounted for 40% of consolidated revenue. In constant currency terms, the business posted revenue of $323 milion.

Revenue from international markets formulation business stood at Rs 804.1 crore, up 45% YoY. The business accounted for 11% of consolidated revenues. The growth was broad-based across regions, led by robust demand in emerging markets and Europe, aided by focused execution

Revenue from consumer wellness business climbed 61% YoY to Rs 1,463.3 crore. Domestic business grew by 1.7% YoY. Within the domestic business, the seasonal brands declined by 9.8%, whereas the skin & hair care brands and food & nutrition brands registered 39.7% and 9.4% YoY growth respectively.

On full year basis, the company's consolidated net profit jumped 11.37% to Rs 5,040 crore in FY26 compared with Rs 4,525.5 crore in FY25. Revenue from operations increased 16.81% to Rs 27,148.4 crore in FY26 compared with Rs 23,241.5.

Meanwhile, the company's board recommended a final dividend of Re 1 per equity share of face value Re 1 each for FY26, subject to shareholders' approval at the forthcoming Annual General Meeting (AGM) scheduled on Tuesday, 11 August 2026. The company has fixed 24 July 2026 as the record date for determining shareholders eligible for the dividend.

Further, the board also approved a share buyback of up to 95,65,217 equity shares aggregating up to Rs 1,100 crore at a price of Rs 1,150 per share, representing a premium of 16.02% over the stock's closing price of Rs 991.20 on 18 May 2026. The record date for the buyback has been fixed as 29 May 2026. As on 15 May 2026, promoters and the promoter group held a 74.9950% stake in the company.

Zydus Lifesciences is an innovative, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies.

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