Zydus Lifesciences Approves Biggest-Ever ₹1,100 Crore Share Buyback

Pharmaceutical major Zydus Lifesciences on Tuesday announced its largest-ever share buyback worth ₹1,100 crore alongside better-than-expected March quarter earnings. The company plans to buy back up to 95.65 lakh shares at ₹1,150 apiece through the tender route, offering a premium of nearly 13% over the previous closing price.

The company’s shares reacted positively to the development, rising over 5% during Tuesday’s trading session before ending around 3% higher. The stock has gained more than 14% so far in 2026, helped by improving profitability, steady domestic growth and investor optimism around the buyback announcement.

On Wednesday at 12:10 PM, Zydus Lifesciences shares were trading 4.12% higher at ₹1,060.90, showing continued enthusiasm for the stock.

What Does The Buyback Mean For Shareholders?

The buyback will be conducted through the tender offer route, with 29 May fixed as the record date to determine eligible shareholders. Investors holding shares in their demat accounts on that date can participate in the offer.

The board has also formed a buyback committee that can revise the buyback price or reduce the number of shares purchased before the record date, provided the total buyback size remains unchanged. Details related to the entitlement ratio and promoter participation are expected later.

This is not the first time the company has opted for a buyback. Zydus had earlier completed a ₹600 crore buyback at ₹1,005 per share and another ₹750 crore repurchase programme in 2022.

As of 15 May 2026, promoters held close to a 75% stake in the company. Foreign portfolio investors owned nearly 7%, while insurance firms and mutual funds together held over 11%.

Q4 Earnings Beat Street Expectations

Zydus Lifesciences reported a consolidated net profit of ₹1,272.5 crore for the January to March quarter, up nearly 9% from the same period last year. Revenue from operations increased over 16% year-on-year to ₹7,587 crore.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose more than 20% to ₹2,554 crore, while margins improved to 33.7% from 32.6% a year ago. Both figures came in ahead of analyst expectations.

Managing Director Sharvil Patel said the company closed FY26 on a strong note and remains focused on maintaining quality standards, integrating recent acquisitions and improving operational synergies.

India’s formulations revenue grew 14% during the quarter, supported by strong demand in chronic therapies and speciality treatments. International markets and consumer wellness businesses also recorded robust growth, while the North America formulations segment saw a yearly decline.

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Along with the earnings and buyback announcement, the company’s board recommended a final dividend of ₹1 per share for FY26, subject to shareholder approval at its annual general meeting in August.

Sources:

The Economic Times

CNBC TV18