CRISIL Ratings has reaffirmed Zydus Lifesciences Limited’s long-term rating at ‘Crisil AAA/Stable’ and its short-term rating at ‘Crisil A1+’. These ratings apply to the company’s bank facilities, non-convertible debentures, and commercial paper program. The reaffirmation reflects the company’s strong financial risk profile, established market position, and healthy growth prospects, despite an increase in debt due to recent acquisitions.
Credit Ratings Reaffirmed
CRISIL Ratings Limited has reaffirmed the credit ratings for Zydus Lifesciences Limited (Zydus Life), a part of the Zydus group. The long-term rating has been reaffirmed at ‘Crisil AAA/Stable’ and the short-term rating at ‘Crisil A1+’. These ratings cover the company’s bank facilities, non-convertible debentures, and commercial paper programme.
Rating Rationale Highlights
The ratings continue to reflect Zydus group’s established position in the Indian branded generics market and expected benefits from the wellness segment. Strengths include a strong financial risk profile and growing international presence. However, these are partially offset by risks related to unfavorable regulatory changes, increasing competition, and price erosion in the US generics market.
CRISIL Ratings noted that consolidated revenue grew 17% year-on-year to Rs. 27,148 crore in fiscal 2026. The group’s financial risk profile remains healthy, supported by sizeable net worth and comfortable debt protection metrics, although adjusted debt increased due to recent acquisitions. Liquidity is considered superior, backed by healthy cash and equivalents and strong annual cash generation.
Instrument Details
The reaffirmed ratings cover various instruments including:
- Total Bank Loan Facilities Rated: Rs. 4724 Crore
- Long Term Rating: Crisil AAA/Stable (Reaffirmed)
- Short Term Rating: Crisil A1+ (Reaffirmed)
- Rs.50 Crore Non Convertible Debentures: Crisil AAA/Stable (Reaffirmed)
- Rs.75 Crore Non Convertible Debentures: Crisil AAA/Stable (Reaffirmed)
- Rs.200 Crore Commercial Paper: Crisil A1+ (Reaffirmed)
CRISIL Ratings will continue to monitor the ratings as part of its ongoing surveillance.
Source: BSE
