Zydus Lifesciences Limited (ZYDUSLIFE.NS) stock analysis
In our weekly check, Zydus Lifesciences Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 1, red flags: 7.
About Zydus Lifesciences Limited
Zydus Lifesciences Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as ZYDUSLIFE.NS.
What our checks show for ZYDUSLIFE.NS
Red flags
- The net margin fell by 13.9 points over 5 years, to 15.8%: the company keeps less of each sale as profit.
- The gross margin fell by 12.2 points, to 50.2%: costs are rising faster than prices.
- Operating cash flow is only 0.49x net profit: part of the reported profit does not arrive as cash.
- Free cash flow is negative (-4.2% of revenue): the business spends more cash than it brings in.
- The stock has fallen as much as 67% from a peak. Would you have held through that?
- Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Analysts expect the net margin to shrink by 1.4 points from today's 15.8%.
Strengths
- Debt is low: 0x equity.
- Operating profit covers interest 10.4 times over.
- Revenue grew 18.4% a year over the last 3 years.
- Earnings per share grew 32.4% a year over the last 3 years.
- Net profit grew 32% a year over the last 3 years.
- The dividend takes 25% of profit: there is a cushion.
Next earnings report: 2026-11-04
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Questions
What grade does Zydus Lifesciences Limited (ZYDUSLIFE.NS) have?
In our weekly check, Zydus Lifesciences Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 1, red flags: 7. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of ZYDUSLIFE.NS stock?
This week's biggest flags for Zydus Lifesciences Limited: Margins falling, Gross margin falling, Profits not backed by cash. In total 8 of 25 checks show a warning or a red flag.
What does Zydus Lifesciences Limited do?
Zydus Lifesciences Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in India, listed on NSE as ZYDUSLIFE.NS.
When does Zydus Lifesciences Limited report earnings next?
The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-31
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