Zydus Lifesciences Q2 Review: ICICI Securities Maintains 'Hold', Sees 4% Downside — Check New Target Price

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ICICI Securities Report

ICICI Securities retains 'Hold' rating on Zydus Lifesciences Ltd. with lower target price of Rs 900, based on 22x FY27E earnings.

Zydus Lifesciences’ recent acquisitions in consumer wellness and medtech divisions helped it in driving a beat in Q2 FY26 revenue though subdued margins of these businesses and lower revenue of gRevlimid dragged Ebitda margin (down 28bps YoY and 426bps QoQ).

Exclusivity in gRevlimid is nearing its end, and a favourable outcome in litigation of Mirabegron in Feb’26 could be crucial.

India biz continues to grow in line with market and it is likely to maintain the trend. Integration of medtech and consumer biz may take a toll on margins in near term, though management has retained its Ebitda margin guidance of ~26% for FY26.

Raise FY26/27E earnings by ~2-3% to factor higher sales from recent acqusitions.

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