Zydus Lifesciences shares drop 3% after Q1 earnings. Here's why Nuvama upgraded rating, hiked target

Zydus Lifesciences had announced its results on Tuesday, following which the stock rallied over 6% to close at Rs 1,191 apiece.

While net profit contracted, revenue from operations increased nearly 22% YoY to Rs 8,017 crore during the April-June quarter of the ongoing financial year 2027, from Rs 6,574 crore reported in the same period last year. The company’s expenses meanwhile jumped more than 41% YoY to Rs 6,798 crore during the quarter under review.

Nuvama on Zydus Lifesciences share price

Nuvama Institutional Equities said Zydus’ capital allocation is set to fructify in the near to mid-term with strong growth in India BGx, improving performance in the US specialty business, optimistic EMEU prospects and potentially the start of the US biologics CDMO business in FY27. The brokerage expects the company’s performance to continue to improve gradually going forward, as it raised its FY27 and FY28 EPS estimates for the company.Also read |Zydus Lifesciences Q1 Results: Net profit down 36% at Rs 939.8 crore

Zydus Lifesciences share price

Zydus Lifesciences shares have gained more than 6% in a week and 3% in a month, rising over 30% in 2026 so far.In the longer term, Zydus Lifesciences shares have delivered positive returns of 25% in a year, 83% in three years and 119% in five years.

Also read |Aswath Damodaran shares 3 lessons investors can learn from rise and fall of Leopold Aschenbrenner's AI fund

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