Global brokerage firm Macquarie has maintained its 'Outperform' rating on Zydus Lifesciences shares with a share price target of ₹1,285 apiece. The rating action follows investor meetings with Managing Director Dr. Sharvil Patel, as reported by Macquarie.
According to Macquarie, branded businesses, including innovative medicines, domestic, and international formulations and consumer health, contributed 55% of Zydus' revenue in the first quarter of FY27. Management expects this mix to exceed two-thirds of revenue over the medium term, supporting EBITDA margin expansion to 27-28% from around 24% currently. As reported by Macquarie, the company is positioning itself for a strategic shift towards higher-margin branded businesses, innovative therapies, MedTech and CDMO.
Zydus' innovation portfolio is emerging as a meaningful growth driver in the US, with innovative products contributing around 10% of the company's US revenue and remaining highly profitable. According to Macquarie, management expects Saroglitazar (FY28 launch) to generate peak sales of $250-300 million (bull case: $400 million), with FY27 margin guidance already reflecting most pre-launch US commercial investments. The company expects to launch over 30 products annually in the US, which is expected to support growth in FY27-28.
In India, management expects Zydus to outperform the Indian pharmaceutical market by 300-500 basis points in FY27, supported by oncology, biosimilars, nephrology and Semaglutide. As reported by Macquarie, Zydus also benefits from supplying gSemaglutide to partners such as Torrent and Lupin. The consumer wellness business (58% owned by Zydus Life) is expected to sustain double-digit growth, driven by low-teens growth in India.
According to latest exchange filings, Zydus Lifesciences has incorporated a subsidiary named Zydus Global Treasury Centre in GIFT City, expanding its corporate structure for treasury operations. This development comes as part of the company's strategic expansion initiatives in the financial services sector.
