Why are Zydus Life shares up another 6% today? Here’s what led the rally
Sarthak Kumar
Zydus Life Sciences shares surged nearly 6% in early trade on Wednesday, extending gains after the company’s post-results management commentary boosted investor sentiment. The stock rose as much as 5.8% to ₹1,078.75, a fresh 52-week high, before trading around ₹1,077.80 on the NSE.
The rally came after the management outlined a strong growth outlook for FY27 during its earnings concall. The company guided for a US revenue base of over $300 million per quarter and projected single-digit growth in the US business during FY27. Zydus Life estimated its FY27 US revenues in the range of $1.3–1.4 billion.
Management also indicated that the India business is expected to maintain growth momentum, supported by the oncology portfolio and upcoming GLP-1 opportunities. The international business is projected to grow 40–45% in FY27, reflecting strong traction in global markets.
Investor sentiment was further supported by the company’s recently announced buyback proposal. Zydus Life approved a share buyback worth ₹1,100 crore through the tender offer route at a price of ₹1,150 per share. The company plans to buy back up to 95,65,217 equity shares, with May 29, 2026 fixed as the record date. Based on the earlier prevailing market price of around ₹1,020, the buyback price implied a premium of nearly 12.7%.
The company also reported a strong operational performance for Q4 FY26. Net profit rose to ₹1,272.5 crore from ₹1,170.9 crore in the year-ago quarter, while revenue from operations increased to ₹7,587 crore from ₹6,527.9 crore YoY.
EBITDA came in at ₹2,554 crore compared to ₹2,125.5 crore a year ago, while EBITDA margin improved to 33.7% from 32.6%. Earnings per share stood at ₹12.65 versus ₹11.64 YoY.
The upbeat FY27 guidance, healthy quarterly performance and buyback announcement have together lifted investor confidence in the stock, helping Zydus Life extend its recent rally.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.