Shares of Zydus Lifesciences fell over 2% to Rs 1,151 on the BSE in Wednesday's early trade after the company reported a 36% year-on-year decline in consolidated net profit to Rs 939.8 crore for the first quarter of FY27, compared with Rs 1,467 crore in the year-ago quarter.

Zydus Lifesciences had announced its results on Tuesday, following which the stock rallied over 6% to close at Rs 1,191 apiece.

While net profit contracted, revenue from operations increased nearly 22% YoY to Rs 8,017 crore during the April-June quarter of the ongoing financial year 2027, from Rs 6,574 crore reported in the same period last year. The company’s expenses meanwhile jumped more than 41% YoY to Rs 6,798 crore during the quarter under review.

Zydus Lifesciences’ EBITDA dropped 8% YoY to Rs 1,929 crore during the first quarter, while the EBITDA margin contracted to 24.1% from 31.8% reported in the year-ago period. “FY27 is off to a strong, profitable start. We continue advancing into an innovation-led, patient-centric organization. Our branded portfolio now exceeds 55% of revenues. Notably, the share of branded sales in the US reached 11% and will continue to expand with the upcoming Saroglitazar launch. Backed by diverse manufacturing and robust quality systems, we will further strengthen our core businesses and expand our market share. Driven by execution rigor and acquisition synergies, we are well-positioned for our next growth phase,” said the company’s managing director Sharvil Patel.

Nuvama on Zydus Lifesciences share price

Nuvama Institutional Equities said Zydus’ capital allocation is set to fructify in the near to mid-term with strong growth in India BGx, improving performance in the US specialty business, optimistic EMEU prospects and potentially the start of the US biologics CDMO business in FY27. The brokerage expects the company’s performance to continue to improve gradually going forward, as it raised its FY27 and FY28 EPS estimates for the company.

The brokerage upgraded its rating on the shares of Zydus Lifesciences to ‘Buy’ and raised its target price to Rs 1,400 apiece, implying more than 17.5% upside potential from the stock’s previous closing price.

Also read | Zydus Lifesciences Q1 Results: Net profit down 36% at Rs 939.8 crore

Zydus Lifesciences shares have gained more than 6% in a week and 3% in a month, rising over 30% in 2026 so far.

In the longer term, Zydus Lifesciences shares have delivered positive returns of 25% in a year, 83% in three years and 119% in five years.

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