Zydus Lifesciences shares surged over 7% on Wednesday, with the stock currently trading at ₹1,088, accounting for gains of almost 7% compared to Tuesday's closing price of ₹1,018. The pharmaceutical major delivered impressive financial performance with consolidated net profit rising 8.7% year-on-year to ₹1,272.5 crore for the quarter ended March 31, as reported by NDTV Profit. The market response reflects investor confidence in the company's robust growth trajectory across key business segments, with the sharp rally coming on the back of the company's strong Q4FY26 earnings announcement.
The company's revenue from operations increased to ₹7,587 crore from ₹6,528 crore in the year-ago period, demonstrating strong operational momentum with 16.2% year-on-year growth. As reported by NDTV Profit, the pharma business contributed ₹5,643.6 crore in revenue, up 4.9% year-on-year, while the consumer wellness segment recorded exceptional growth with revenue increasing to ₹1,463.3 crore from ₹908.1 crore in the previous year. However, the company registered a one-time loss of ₹398 crore compared to ₹220 crore in the corresponding period last year, with EBITDA adjusted for forex gains. The sharp growth in the consumer wellness segment was a key driver of the overall revenue expansion, supporting the company's diversified business model.
Pharma major Zydus Lifesciences announced its largest-ever share buyback worth ₹1,100 crore at a buyback price of ₹1,150 per share, offering nearly a 13% premium over the stock's previous closing price. According to reports from The Economic Times, the company's board approved a plan to buy back up to 95.65 lakh shares, each with a face value of Re 1, representing 0.95% of the company's paid-up equity share capital. The buyback will be conducted through a tender route and follows previous successful buyback initiatives by the company.
The company's board of directors also approved the formation of a buyback committee with significant flexibility. As reported by The Economic Times, the committee can increase the buyback price or reduce the number of shares to be bought back up to one day before the record date, without changing the overall buyback size. The record date for eligibility is May 29, and other details including the entitlement ratio and whether the promoter and promoter group will participate in the buyback will be disclosed later.
Along with the Q4 results and share buyback announcement, Zydus Lifesciences board has recommended a final dividend of Re 1 per share (100%) on a face value of Re 1 each, subject to shareholders' approval at the company's Annual General Meeting scheduled for August 11. The company's strong performance across both pharma and consumer wellness segments, combined with the significant shareholder returns through buyback and dividend, positions it well for continued growth. Brokerage firm Motilal Oswal has raised earnings estimates for the company, factoring in increased traction in limited-competition products in the US and industry-beating performance in domestic formulation markets.
