Zydus Life Q1 Results: FY26 guidance maintained but stock falls on subdued earnings

Shares of Zydus Lifesciences Ltd. have given up their gains during Tuesday’s trading session after their June quarter results, despite beating expectations, were subdued, when compared on a year-on-year basis.The stock has witnessed volatile moves, despite the management reiterating that they remain firmly on course to meet their growth aspirations for the current financial year.

Zydus Life reported a 3.3% growth in its net profit to ₹1,467 crore, which was also aided by a forex gain of ₹57 crore. The base quarter had a forex loss of ₹25 crore. The net profit figure was also higher than the CNBC-TV18 poll of ₹1,211.6 crore.

Revenue for the quarter increased by 6% from last year to ₹6,574 core, which is also higher than the CNBC-TV18 poll estimate of ₹6,350 crore.Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained flat at ₹2,089 crore, while analysts were working with a number of ₹1,879.3 crore. EBITDA margins though, narrowed by nearly 200 basis points to 31.8% from 33.6% last year. Analysts were expecting the margin figure to be at 29.6%.

US sales for the quarter remained largely flat from last year and increased 2.5% from the March quarter to $372 million.

“We remain firmly on track to achieve our FY2026 aspirations and are excited about the upcoming developments on the innovation front, which we believe will open up new avenues for sustainable growth,” Sharvil Patel, the Managing Director of Zydus Life was quoted as saying.

Shares of Zydus Life are currently trading 0.3% lower after the results announcement at ₹952.1. The stock has remained flat through the year, down only 2.2%.