Strong Mar-Q and FY27 guidance, maintain BUY

Research evidence excerpt

Strong Mar-Q and FY27 guidance, maintain BUY

brance in PREV 42.34

FY28. Zydus plans to scale its biosimilar portfolio through bLucentis (interchangeable) launch

at end-FY27 and bKeytruda as key long-term growth levers.

Exhibit 1 - Zydus Lifesciences: Key Metrics

Sales 232,288 271,446 310,883 339,015 365,254India in-line: Domestic formulations grew 14% YoY (in-line) and o/p the IPM in key therapy KeyNetGrowthMetrics (INRm) 2025A 2026A 2027E 2028E 2029E (%) 19% 17% 15% 9% 8%

(%) 30% 27% 24% 25% 25%areas including super-specialty areas of Oncology (INR8b annual sales) and Nephrology. EBITDAEBITDAAdj.PAT 68,824 71,908 75,370 84,425 90,470 46,808 54,283 42,820 52,050 57,441

EPS (INR) 44.8 50.1 42.6 51.7 57.1

(%) 23% 16% 13% 15% 15%Recent GLP-1 launch in India has received a good response. EPSROCEROEGrowth(%) 18% 12% -15% 22% 10% 20% 20% 13% 14% 14%

P/E (x) 21.6 18.4 23.9 19.7 17.8

P/B 4.3 3.8 3.3 2.9 2.5

Intl. markets continue strong momentum: International markets grew 45% YoY (21% beat) .Source:EV/EBITDA (x) Company data, Jefferies15.1 estimates14.5 13.8 12.4 11.5

reporting broad-based growth in EMs and Europe. Mgt. expect strong momentum to continue

through geographic expansion and product launches.

Strong guidance for FY27: Overall revenue growth of high teens, Ebitda margin of 24%+

and growth in US on a high base of FY26 were better than expected. Zydus anticipates

200-400bps o/p to continue driven by innovative portfolio, scale-up of biosimilar products and

new launches in key therapies.

Update on innovation: The company recd approval for Desidustat from the Chinese regulator

and is preparing to launch in Sep'26-Q. NDA for Sarolglitazar Magnesium has been filed, and

the company awaits the USFDA to accept its application.