ZYDUSLIFE

Fundamental Analysis ✅ Strengths ✔ Strong Revenue Growth Q3 FY26 revenue up 30% YoY ✔ Consistent Business Scale EBITDA growth 31% YoY Margin 26% (healthy for pharma) ✔ Attractive Valuation P/E 18 vs sector 60+ → undervaluation ✔ Pipeline + US Opportunity USFDA approvals & specialty drugs (rare disease drug approved) ✔ Dividend + Stability Dividend yield 1.2% ⚠️ Concerns ❌ Margin Pressure (Key Issue) PAT margin dropped from 20% → 14% QoQ ❌ Profit Growth Slow Net profit growth only 1–9% YoY despite strong sales ❌ US Generics Dependency Pricing pressure risk in US market ❌ High R&D Spend 8–9% of revenue (short-term margin impact)