Lower US growth trajectory, margin pressures ahead for Zydus Lifesciences

In the US market, robust growth in the base portfolio, new launches and generic version of Myrbetriq (for overactive bladder) aided its revenue effort in that market

Zydus Lifesciences delivered a strong performance in the March quarter (Q4FY25), surpassing Street estimates on the back of robust revenue and margin growth. However, concerns over future US sales, heightened R&D expenses, and rich valuations have prompted brokerages to trim their estimates and adopt a cautious stance on the stock. 

The stock, currently trading at ₹933, is up 5 per cent over the past month. Despite near-term momentum, analysts believe the upside is limited given the challenges ahead. 

The consolidated revenues grew 18 per cent year-on-year (Y-o-Y) in Q4FY25, led by a 24 per cent Y-o-Y and 30 per cent