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Zydus LifesciencesBOM:532321 +2.03%92 Gross Margin % is 71.29% as of Jun. 2026, which is 14% above its 10-year median of 62.61. GuruFocus rates BOM:532321 with a GF Score™ of 92/100 and a GF Value™ of ₹1,205.45 (Fairly Valued). The stock has 5 warning signs investors should review. Among 940 Drug Manufacturers companies, Zydus Lifesciences ranks better than 84.79% on this metric.
The historical rank and industry rank for Zydus Lifesciences's Gross Margin % or its related term are showing as below:
BOM:532321'
s Gross Margin % Range Over the Past 10 Years
Min: 60.62 Med: 62.61 Max: 72.4
Current: 72.4
During the past 13 years, the highestGross Margin % of Zydus Lifesciences was 72.40%. The lowest was 60.62%. And the median was 62.61%.
BOM:532321's Gross Margin % is ranked better than 84.79% of 940
companies
in the Drug Manufacturers industry
Industry Median: 48.35
vs BOM:532321: 72.40
Zydus Lifesciences had a gross margin of 71.29% for the quarter that ended in Jun. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zydus Lifesciences was 3.10% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Zydus Lifesciences had a gross margin of 71.29% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Zydus Lifesciences Gross Margin % Related Terms
Zydus Lifesciences Gross Margin % Historical Data
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The historical data trend for Zydus Lifesciences's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Zydus Lifesciences's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zydus Lifesciences Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zydus Lifesciences's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zydus Lifesciences's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Zydus Lifesciences (BOM:532321) has a Gross Margin % of 71.29% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Zydus Lifesciences and its competitors. This is 14% above median its historical median of 62.61. Over the past decade, Zydus Lifesciences' Gross Margin % has ranged from 60.62 to 72.40. According to the industry distribution chart, Zydus Lifesciences ranks #143 out of 940 companies in the Drug Manufacturers industry, placing it in the top 15.2%.
Is Zydus Lifesciences' Gross Margin % too high?
Zydus Lifesciences' current Gross Margin % of 71.29% is 14% above median its 10-year median of 62.61. Over the past 10 years, this metric has ranged from a low of 60.62 to a high of 72.40. The Drug Manufacturers industry median Gross Margin % is 48.35. Zydus Lifesciences' value of 71.29% is 47.4% above this industry median. Based on the distribution chart, Zydus Lifesciences ranks #143 out of 940 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zydus Lifesciences has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zydus Lifesciences' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zydus Lifesciences ranks #143 out of 940 companies for Gross Margin %. This places Zydus Lifesciences in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.35. Zydus Lifesciences' value of 71.29% is 47.4% above this benchmark. Historically, Zydus Lifesciences' own Gross Margin % has ranged from 60.62 to 72.40 over the past decade. While the company's 10-year median is 62.61 vs. the industry median of 48.35, Zydus Lifesciences has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.35, based on 940 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zydus Lifesciences's current Gross Margin % of 71.29% is 47.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Zydus Lifesciences and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zydus Lifesciences's current Gross Margin % is 71.29%, which is 14% above median its own 10-year median of 62.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zydus Lifesciences stock overvalued right now?
Based on GuruFocus' analysis, Zydus Lifesciences (BOM:532321) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,205.45, compared to a current price of ₹1,204.00 — trading 0.1% below its estimated fair value. The current Gross Margin % is 71.29%, which is 14% above median its 10-year median of 62.61 and 47.4% above the Drug Manufacturers industry median of 48.35. Zydus Lifesciences' overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Zydus Lifesciences (BOM:532321), the current Gross Margin % is 71.29% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zydus Lifesciences (BOM:532321) Overvalued in 2026?
Based on GuruFocus' analysis, Zydus Lifesciences stock appears to be undervalued.
The current stock price of ₹1,204.00 is trading 0.1% below its estimated GF Value™ of ₹1,205.45.
GuruFocus considers Zydus Lifesciences to be Fairly Valued.
Key valuation signals for BOM:532321:
Gross Margin %: 71.29% (14% above median its 10-year median of 62.61)
GF Value™: ₹1,205.45 vs. price of ₹1,204.00 (0.1% below fair value)
Industry Position: 47.4% above the Drug Manufacturers median (#143 of 940)
No single metric tells the full story. See the BOM:532321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zydus Lifesciences Ltd is a specialty and generic drug manufacturing company. It is engaged in the research, development, production, marketing, and distribution of pharmaceutical products. The product portfolio of the company includes Active Pharmaceutical Ingredients (API), human formulations, animal health and veterinary, and consumer health and wellness products. Its products are marketed under brands like Amlodac, Inditel, Pivasta, and others. The company's operating segments are: Pharmaceuticals, which derives key revenue, and Consumer products. Geographically, it generates maximum revenue from the United States, followed by India, and other countries.
92GF Score
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