Q4 Results: Zydus Lifesciences Extends Rally to 4.50%; Strong Results and Buyback Keep Bulls in Charge

Mumbai, May 20: Zydus Lifesciences continued its powerful run on Wednesday, building on Tuesday’s strong session to extend gains further as markets opened. The stock, which had closed Tuesday at ₹1,018.90, gapped up sharply to open at ₹1,066.15 and surged to an intraday high of ₹1,093.65 in the early part of the session a level that also marks a fresh 52-week high.

As of the latest tick, the last traded price stood at ₹1,064.70, up ₹45.80 or 4.50% from the previous close, with the VWAP for the day at ₹1,075.52 suggesting the stock spent a good portion of the morning trading above current levels before some profit-booking set in. The intraday chart shows a sharp spike between 9:15 and 9:45 am that drove the stock to its session peak, followed by a gradual drift lower through the late morning, though the counter has held comfortably above the ₹1,060 mark through the afternoon, indicating buyers remain engaged.

The order book shows 46.46% on the buy side against 53.54% on the sell side a more balanced configuration than yesterday’s unusual zero-seller depth pointing to two-sided participation at elevated levels.

Weekly Trend

The weekly trend reinforces the scale of the ongoing rally. The stock started the week of May 13 near ₹940, climbed steadily through May 14 and 15, touched a weekly high of around ₹1,008 before pulling back to close Monday at ₹991, and then surged on Tuesday to close at ₹1,018.90. Wednesday’s move to ₹1,064.70 means the stock has now gained approximately ₹125 or over 13% from its May 13 opening a near-vertical recovery driven entirely by results-led re-rating.

Strong Q4 Performance, Buyback, Dividend

The catalyst for the move was Zydus Lifesciences’ Q4 FY26 results announced on Tuesday, which came in ahead of expectations on multiple counts. Revenue from operations rose 16.2% year-on-year to ₹7,587 crore from ₹6,527.90 crore in Q4 FY25, while EBITDA surged 20.2% to ₹2,554.40 crore, with the EBITDA margin expanding 110 basis points to 33.7%. Net profit for the quarter came in at ₹1,592.90 crore, up 14.6% year-on-year from ₹1,390.50 crore, adjusted for a one-time litigation settlement charge of ₹397.50 crore related to the Mirabegron case in the US.

For the full year FY26, the picture was equally compelling. Revenue from operations grew 16.8% to ₹27,148.40 crore from ₹23,241.50 crore, full-year EBITDA rose 20.1% to ₹8,475.10 crore with the margin expanding 80 basis points to 31.2%, and net profit grew 15% to ₹5,456.40 crore from ₹4,745.10 crore in FY25.

Adding further fuel to the rally, the board recommended a dividend of 100% for FY2025-26 and approved a share buyback of up to ₹1,100 crore at ₹1,150 per share a 16% premium to Tuesday’s closing price of ₹1,018.90 signalling strong management conviction in the company’s financial health and growth trajectory. The buyback price of ₹1,150 now sits roughly 8% above Wednesday’s LTP, providing a visible price floor that is keeping the counter well-supported even as the broader market trades under pressure.

Source:

• https://www.nseindia.com/get-quote/equity/ZYDUSLIFE/Zydus-Lifesciences-Limited