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Informist, Saturday, Aug. 9, 2025

 

 

By Sunil Raghu

 

 

AHMEDABAD - Zydus Lifesciences Ltd.'s consolidated net profit for the June quarter is estimated to fall 3.92% on year to INR 13.6 billion, owing to slower growth in the US market and also of the Indian formulations business, according to the average of estimates from nine brokerage firms. From the trailing quarter, the bottom line is seen rising 16.5%, from INR 11.7 billion in the March quarter.

 

The net profit estimates by the brokerages range from INR 12.2 billion by Dolat Capital Market Pvt. Ltd. to INR 15.9 billion by Systematix Shares and Stocks (India) Ltd.

 

The drugmaker's net sales are seen rising 5.2% on year to INR 65.3 billion, according to the average of the estimates. From the trailing quarter, the net sales are almost flat, rising merely 0.1%. The estimates for net sales range from a low of INR 62.76 billion by Motilal Oswal Financial Services Ltd. to a high of INR 67.1 billion by Nuvama Wealth Management Ltd.

 

Analysts tracking Zydus Lifesciences have mixed opinion about pharma company's performance in the US in June quarter. While Systematix Shares and Stocks (India) Ltd. sees continued traction from gRevlimid and gMyrbetriq to aid US growth, Motilal Oswal Financial Services Ltd. expects US sales to decline 4% on year after robust growth for the past five quarters. Meanwhile, JM Financial Institutional Securities Pvt. Ltd. expects that North America would deliver a 4% on year growth, Nirmal Bang Equities Pvt. Ltd. expects it to grow 5% due to contribution from gRevlimid.

 

Similarly, on growth of Zydus Lifesciences' domestic business, the analysts remain divided on their expectations. Systematix expects Zydus Life's domestic business to be lackustre in mid-single digits, Nirmal Bang sees it at 9% on year due to weak growth in acute therapies. Motilal Oswal expects domestic formulation sales to grow 12% on year due to growth in cardiac, respiratory, antineoplastic, supported by in-licensing deals.

 

Analysts pegged company's earnings before interest, tax, depreciation, and amortisation at INR 20.6 billion, with estimates ranging from INR 19.1 billion to INR 24.6 billion, according to estimates from nine brokerages.

 

Motilal Oswal estimates 18% on year and 16% on quarter growth in Zydus Life EBITDA, while Nirmal Bang expects it to decline 315 basis points on year to 30% due to change in product mix and rise in other expenses. J.M. Financial Institution expects margins to contract 150 basis points on year.

 

Zydus Lifesciences will announce its June quarter earnings on Tuesday.

 

Analysts are keen to hear management's views on status of high-value launches in the US, recent acquisition in the medical device space aditional colour on gMirabegron sustainability. They also will wait to know progress on clinical trials related to Saroglitazar Magnesium. A section of analysts are keen to know whether there are any mergers and acquisition opportunities available for Zydus Life in mid-tech space to support amplitude deal. Zydus Life was in talks to buy 85.6% stake in France's Amplitude Surgical for nearly INR 24.5 billion, with subsequent cash tender offer planned for the remaining shares at the same price.

 

Among the 18 brokerages polled by Informist, 13 have given an 'add' call on Zydus Life share with an average target price of INR 1,009 per share. Four analysts have a 'hold' call with average target price of INR 959 and one has a 'sell' call on the stock with average target price of INR 840 per share.

 

On Friday, shares of the company ended 0.9% lower at INR 936.15 on the National Stock Exchange. At this price, the stock has risen nearly 6% from INR 883.3 at the end of the trading session on May 20, the day its March quarter earnings were announced.

 

Following are the Apr-Jun consolidated earnings estimates for Zydus Lifesciences based on reports from nine brokerage firms in descending order by estimate of net profit:

 

Brokerage firm	Net sales	Net profit	EBITDA
	-------(In INR million)-------
Systematix Shares and Stocks (India) Ltd.	66,952	15,918	24,585
JM Financial Institutional Securities Pvt. Ltd.	64,738	14,707	21,338
HDFC Securities Ltd.	66,277	14,109	20,745
Antique Stock Broking Ltd.	66,273	13,849	19,926
Nuvama Wealth Management Ltd.	67,072	13,514	20,457
Nirmal Bang Equities Pvt. Ltd.	65,293	13,317	20,126
Motilal Oswal Financial Services Ltd.	62,762	12,758	19,582
Prabhudas Lilladher Pvt. Ltd.	63,970	12,449	19,143
Dolat Capital Market Pvt. Ltd.	64,604	12,156	20,745
AVERAGE	65,326.78	13,641.89	20,554.67

 

End

 

Edited by Akul Nishant Akhoury

 

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