What is driving the projected contraction in EBITDA margins?

Margins will drop to >24% from the 31.2% recorded in FY26. Competition in the Revlimid and Mirabegron markets combined with $70 million in new Saroglitazar launch costs is the primary cause.

How much is Zydus investing in its specialty product launch?

The company is directing $70 million into the commercialization of Saroglitazar in the United States.

What is the status of the company's expansion into China?

Zydus received approval for its renal anemia drug, Desidustat, in the Chinese market.

What is the expected top-line growth for FY27?

Management is forecasting high-teens consolidated revenue growth.

Earnings · Pharmaceuticals · Mega cap

Zydus Lifesciences targets high-teens revenue growth for FY27

Management expects EBITDA margins to retreat below 24% next year as it spends heavily on US specialty launches and faces new competition.

ZYDUSLIFE 24 May 2026 · 9:41 PM IST Verify on BSE · NSE

Mkt cap₹1.05 lakh cr

P/E20.74×

ROE18.89%

Debt / eq.0.13

Div yld0.10%

>24% Target EBITDA margin for FY27, down from 31.2% in FY26.

What's new

Management guides for high-teens consolidated revenue growth in FY27.
EBITDA margins will compress as competition hits Revlimid and Mirabegron.
The firm is spending $70 million on the US launch of Saroglitazar.

Why this matters

The drop in margin guidance reveals significant pressure on the company's legacy drug portfolio. Heavy upfront spending on Saroglitazar and the cost of acquiring Assertio Holdings will test the company's profitability in the year ahead.

What we're watching

The integration timeline for the Assertio Holdings acquisition.
Revenue impact of Saroglitazar’s US rollout.
Market share shifts in the Revlimid and Mirabegron portfolios.

The full read

Zydus Lifesciences faces a year of transition. Management forecasts high-teens revenue growth for FY27, but profitability will retreat from the 31.2% EBITDA margin achieved in FY26. The company expects margins to settle >24% as it deals with competitive pressure on its Revlimid and Mirabegron portfolios in the United States. Management is committing $70 million toward the commercialization of Saroglitazar and will work through the integration of its proposed Assertio Holdings acquisition. Desidustat, now approved in China for renal anemia, offers a specific revenue stream for the coming year. Whether this specialty focus restores margins to previous levels is the next test for the company.

Questions answered

What is driving the projected contraction in EBITDA margins?: Margins will drop to >24% from the 31.2% recorded in FY26. Competition in the Revlimid and Mirabegron markets combined with $70 million in new Saroglitazar launch costs is the primary cause.
How much is Zydus investing in its specialty product launch?: The company is directing $70 million into the commercialization of Saroglitazar in the United States.
What is the status of the company's expansion into China?: Zydus received approval for its renal anemia drug, Desidustat, in the Chinese market.
What is the expected top-line growth for FY27?: Management is forecasting high-teens consolidated revenue growth.

Mentioned: Zydus Lifesciences · Assertio Holdings · Saroglitazar

Primary source BSE · NSE

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