Target: ₹1,080CMP: ₹1,040.95Zydus Lifesciences (ZYDUSLIF) Q4 EBITDA was sharply above our estimates aided by higher revenues across key markets. We believe base business remains steady with mild erosion. The y-o-y growth was aided by higher US sales, MedTech and Comfort click consolidation.Domestic formulation delivered growth of about 14 per cent y-o-y. Consumer business grew by 61% YoY. There was full quarter of Comfort click consolidation performance.Though, company is working on a robust pipeline of complex products, including injectables, 505(b)2, transdermals, NCE, biosimilars and vaccines, they are expected to materialise over the next 2–3 years.We expect US sales to remain largely flat over FY26-28E given sales erosion in some of key products and thereby expect flat EPS CAGR adjusted for forex over FY26-28E.The management has guided for 2-3 high value launches over FY27E/28E, timely launch will be key to sustaining momentum in the US sales. The US sales came in at $323 million up 2.5 per cent q-o-q. We estimated $300 million. EM markets were up by 51 per cent y-o-y to ₹730 crore. API revenues remained flat YoY. Medtech business reported revenues of ₹330 crore; up 10 per cent q-o-qOur FY27/28E EPS broadly remain unchanged. We maintain our ‘Accumulate’ rating with TP of ₹1,080, valuing at 23x FY28E EPS.Published on May 20, 2026