Zydus Wellness (531335) investor relations material

Executive summary

• Net sales grew 2.2% year-over-year to INR 8,577 million, with double-digit growth excluding seasonal brands, despite early monsoon and seasonal impacts.

• EBITDA was stable at INR 1,556 million, up 0.2% year-over-year, while PAT declined 13.4% due to non-cash items and higher expenses.

• Core brands like Sugar Free and Glucon-D maintained dominant market shares; international business contributed 85% of top 5 market revenues.

• Rural and digital channels, especially in tier 2/3 cities, drove growth, outpacing urban markets.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board on July 30, 2025.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 8,609 million, up from INR 8,410 million in Q1 FY25.

• EBITDA stood at INR 1,556 million (18.1% of revenue), nearly flat year-over-year.

• PAT was INR 1,279 million, down from INR 1,477 million in Q1 FY25.

• Gross margin was 54.8%, down 73 bps year-over-year, mainly due to product mix and seasonal effects.

• Advertisement and promotion expenses increased 6.6% year-over-year.

Outlook and guidance

• Management remains confident in structural double-digit revenue growth over the next 2–3 years, with margin expansion actions and product-level improvements.

• Focus on accelerating core brands, portfolio diversification, and international expansion, especially in SAARC, MEA, and SEA.

• Advertisement spend to remain at FY25 levels in the short to medium term, with efficiencies expected longer term.

• Open to bolt-on acquisitions to drive scale and fill portfolio gaps.

• Performance in Q1 and Q4 is not representative due to product seasonality.