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Informist, Friday, Feb. 6, 2026

By Narayana Krishna

HYDERABAD - Zydus Lifesciences Ltd. is expected to post a healthy revenue growth in the December quarter, both on an on-year and on-quarter basis, led by steady performance in the domestic formulations business and consolidation of acquired entities, according to analysts. While analysts see steady growth in the domestic formulations business, the US generics business remains subdued due to price erosion and negligible Revlimid contribution for the quarter.

The company's December quarter bottom line is expected to see a decline due to higher costs, the absence of Revlimid contribution, and increased tax outgo, according to analysts. Costs related to the integration of acquired entities may also dent margins for the quarter, dragging the net profit down on an on-year as well as on-quarter basis.

Zydus Life is expected to report a near 5% on-year fall in net profit for the December quarter to nearly INR 9.8 billion. The company's revenue is expected to rise nearly 20% on year to INR 63 billion, according to the average of estimates from 10 brokerages. On a quarter-on-quarter basis, the bottom line is likely to fall nearly 25% while revenue is expected to see growth of 3%, the estimates show. Zydus Life will announce its December quarter results Monday.

The highest estimate for the company's net profit is INR 11.9 billion from Systematix Shares and Stocks (India) Ltd and the lowest estimate of over INR 8.8 billion is from ICICI Securities Ltd. The highest revenue estimate is by Elara Securities (India) Pvt. Ltd. at INR 65.6 billion while the lowest is by Nirmal Bang Equities Pvt. Ltd. at nearly INR 60 billion.

Zydus Lifesciences' December quarter revenue growth estimates range between 14% and 22% on a year-on-year basis, with Nirmal Bang's estimate at the lower end and JM Financial's estimate at the higher end. Most brokerages' projections for revenue growth are in the mid- to high-teens. Motilal Oswal and HDFC Securities both forecast a growth of around 21% on year, driven by healthy base business performance and the full-quarter impact of acquisitions.

Zydus Lifesciences and its consumer health arm have expanded through a series of acquisitions over the past year across medical devices and wellness. In March 2025, Zydus Lifesciences acquired a 85.6% stake in France-based orthopedic devices maker Amplitude. Separately, Zydus Wellness Ltd. acquired 100% of UK-based Comfort Click in August, strengthening its vitamins, minerals, and supplements portfolio, and earlier, in October 2024, it had bought the health snacking operations of Naturell (India) Pvt. Ltd.

Nuvama Wealth sees the company's overall revenues rising around 18% on year, supported by domestic momentum and a 30% growth in emerging markets and Europe while expecting muted US performance.

Systematix expects about 16% on-year growth, with branded markets and acquisition integration underpinning the topline, while Nirmal Bang anticipates a more moderate 14% on-year rise, citing weak growth in the US and steady domestic demand.

Analysts expect Zydus Lifesciences' earnings before interest, tax, depreciation, and amortisation to grow on an on-year basis in the December quarter. Zydus Life's December quarter EBITDA is projected at INR 15.9 billion, according to the average of estimates. Brokerages project the company's December quarter EBITDA margin at 23.5-25.0%. HDFC Securities and Motilal Oswal see margins around 25%, Nirmal Bang expects margins near 25%, while Nuvama Wealth forecasts a slightly lower 23.5%.

Analysts are looking forward to the company's comments on the US launch pipeline and the roadmap to expand acquired businesses into newer geographies.

On Friday, shares of Zydus Life closed nearly 2% lower at INR 888.15 on the National Stock Exchange. The shares have fallen over 5% since the company announced its September quarter earnings. Of the 11 research reports on the company available with Informist six have a "buy" recommendation on the stock with an average target price of INR 1,132, over 27% higher than the current market price. Three have a "hold" rating with a target price of INR 962 per share and two have sell rating with a target price of INR 903 per share.

Following are the Oct-Dec earnings estimates for Zydus Lifesciences Ltd. from 10 brokerages in the descending order by the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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