Zydus Lifesciences Q4 Results Review: U.S. Generic Growth Surprises, Says Systematix— Recommends 'Hold'

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Systematix Report

Zydus Lifesciences Ltd. Q4 FY25 revenues (Rs 65,279 million) were in-line with estimates but Ebitda (Rs 21,255 million) and Net earnings (Rs 11,709 mn) were below our estimates. Revenue was up 17% YoY and 23% QoQ led by US formulations business which grew 24% YoY (led by gMirabegron, negligible gRevlimid sales).

India Branded formulation growth was faster than IPM (12% YoY). North America revenue now stands at 48% of the total revenue for Zydus Lifesciences and the dependence should increase further in subsequent quarters led by incremental contribution from gRevlimid and gCopaxone.

The longevity of gMirabegron opportunity remains uncertain as it is contingent on litigation outcome (February’26).

We tweak our estimates as we rebuild contribution from gMirabegron for FY26 and incorporate recently approved gCopaxone in our numbers for FY27. Our revised target price stands at Rs 1,009, based on 25x FY27 EPS and we recommend a Hold on the stock.

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