Prabhudas Lilladher has recommended an 'Accumulate' rating on Zydus Lifesciences with a target price of ₹1,200 in its research report dated August 12, 2026. The brokerage values the stock at 25x FY28E EPS, maintaining a positive outlook on the pharmaceutical company's growth prospects. This recommendation comes alongside Macquarie's earlier target price revision to ₹1,285, indicating broad analyst confidence in Zydus' strategic direction.
Zydus Lifesciences delivered Q1 EBITDA that was largely in line with estimates, aided by higher revenues across key markets. The company has successfully managed the transition of gRevlimid sales decline with new niche launches, demonstrating operational resilience. According to Prabhudas Lilladher, the company is working on a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars and vaccines, which are expected to materialize over the next 2-3 years. Management has guided for 2-3 high value launches over FY27E/28E, with timely execution being key to sustaining momentum in US sales.
Macquarie highlighted that these newer businesses could become growth, margin and ROCE accretive as they scale. The brokerage noted that the rare disease portfolio within Specialty and MedTech businesses is growing meaningfully while being profitable. Additionally, Saroglitazar's expected US launch in FY27 represents a meaningful opportunity with peak sales potential of $250-300 million. As reported by Macquarie, Zydus has built dedicated management teams and clear execution plans across these growth platforms.
The company's existing India business places it ahead of peers in the Pharma sector as it has transformed with chronic therapies now contributing over 50% of domestic revenue. According to Macquarie, strong momentum in innovation and biosimilars could help Zydus re-enter the top five companies in the IPM over the medium term. The brokerage estimates a mic shift to branded businesses to drive profitability and ROCE expansion, with revenue proportion increasing from 50% currently to 65% by 2029.
As of August 10, 2026, Zydus Lifesciences is trading at ₹1,119.00, positioned in the upper range of quarterly prices. The stock opened at ₹1,115.00 and closed at ₹1,119.00, with a trading range between ₹1,112.50 and ₹1,124.90. The session showed 7.61% volume compared to average volume, indicating above-normal trading activity. The stock has reached a high of ₹1,181.50 in the last three months and touched a low of ₹890.40 during the same period.
