Zydus Lifesciences has officially announced that its ₹1,100 crore share buyback programme will commence on Thursday, June 4, 2026, running for four trading sessions until Wednesday, June 10, 2026. The buyback price has been raised to ₹1,260 per equity share from ₹1,150 per equity share earlier, representing a 16% premium over the company's closing price. The pharmaceutical company's board had initially approved the repurchase of up to 95.65 lakh equity shares at ₹1,150 per share via the tender offer route in May. The latest revision is linked to the company's earlier public announcements made on May 13, May 19 and May 21 regarding the buyback plan. Friday, May 29, was designated as the record date to determine shareholder eligibility, with those holding shares in their demat account before this date being eligible to participate.
The maximum number of equity shares proposed to be bought back has been revised to 87,30,158 shares, representing up to 0.87% of the company's total paid-up equity share capital. For general category shareholders, the company will accept seven equity shares for every 937 shares held as on the record date. However, small shareholders with authorized share capital of up to ₹2 lakh will receive a more favorable entitlement ratio of five equity shares for every 49 shares held. At the end of the March quarter, Zydus Life had over 4 lakh small retail shareholders who owned a 4.8% stake in the company. Despite the reduction in the number of shares, the total buyback amount remains unchanged at ₹1,100 crore. Promoters are also set to participate in the buyback, with the buyback continuing to be carried out through the tender offer route at a total consideration not exceeding ₹1,100 crore.
This marks the third instance of the company carrying out a share buyback since 2022. The previous buyback was conducted in 2024 at ₹1,005 per share, while the earlier buyback in 2022 was executed at ₹650 per share. Promoters participated in both previous share buybacks, demonstrating consistent shareholder reward strategy. The current buyback represents the highest price offered to date, reflecting the company's improved financial position and commitment to rewarding shareholders. The buyback will continue to be carried out through the tender offer route at a total consideration not exceeding ₹1,100 crore, in line with the Companies Act, 2013 and the SEBI (Buy-Back of Securities) Regulations, 2018.
According to Hindustan Times, the company reported a 14.6% year-on-year increase in consolidated net profit to ₹1,592.9 crore for the quarter ended March 31, driven by strong growth in its consumer wellness business. Revenue from operations climbed to ₹7,587 crore, compared with ₹6,527.9 crore in the corresponding period last year. Revenue from the pharma business stood at ₹5,643.6 crore, marking a 4.9% YoY rise, while the consumer wellness segment posted significant growth, with revenue surging to ₹1,463.3 crore from ₹908.1 crore a year earlier. Zydus Lifesciences Managing Director Sharvil Patel stated that the company ended FY26 on a strong footing, meeting its targets for both revenue growth and profitability. Patel further stated that the company remains optimistic about its growth outlook, backed by a robust product pipeline and emerging growth opportunities.
As reported by CNBC TV18, Zydus Lifesciences shares ended 0.3% lower at ₹1,082 on Friday, though the stock remains up 18% year-to-date. The multibagger pharma stock has delivered 19% gains on a year-to-date basis and 17.44% in a year. The stock has given multibagger returns of over 114% in three years and 75% in five years. Share buybacks are commonly undertaken by companies to distribute excess cash to shareholders and improve capital allocation efficiency, which can potentially enhance shareholder returns over the long term by reducing the number of shares outstanding in the market. The current buyback represents the company's continued commitment to rewarding shareholders through strategic capital allocation.
