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Zydus Wellness (531335) investor relations material

Zydus Wellness Q2 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 25/26 earnings summary5 Nov, 2025

Executive summary

  • Early and extended monsoons and GST 2.0 transition impacted sales in key seasonal categories, but non-seasonal and core brands showed resilience and maintained momentum.

  • Quick commerce and e-commerce channels continued strong growth, with tier 2 and 3 cities emerging as new growth drivers.

  • International expansion and digital business growth continued, with recent acquisitions (Comfort Click Limited and Naturell India Pvt. Ltd.) performing in line with expectations.

  • New product launches included Nutralite Activ Peanut Butter and RiteBite Millet Wafer Protein Bar, targeting health-conscious consumers.

  • Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board and certified by auditors with no material misstatements.

Financial highlights

  • Consolidated net sales grew 31% for the quarter and 12.8% for H1 FY26, driven by newly acquired entities and strong core brand performance.

  • Q2 FY26 net sales: ₹6,429 million (up 31% YoY); H1 FY26 net sales: ₹15,006 million (up 12.8% YoY).

  • Consolidated EBITDA reached INR 230 million, up 17.3% year-over-year.

  • Net loss including exceptional items and non-cash amortization was INR 528 million; adjusted net loss excluding exceptional items was INR 186 million.

  • Gross contribution margin improved to 52.4% in Q2 FY26 (+483 bps YoY); H1 FY26 at 53.7% (+118 bps YoY).

Outlook and guidance

  • Structural growth drivers remain intact despite temporary seasonal headwinds and GST 2.0 transition.

  • Management remains committed to achieving 17-18% EBITDA margin over the next two years through gross margin improvements and operating leverage.

  • Double-digit growth targeted over the next 3-5 years, leveraging multi-category, multi-channel, and multi-geography strategies.

  • Continued focus on innovation, digital engagement, and international expansion to drive future growth.

  • Revenues and profits are typically higher in the first and last quarters due to seasonality in product demand; current quarter performance may not be indicative of future quarters.

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Frequently asked questions

Zydus Wellness Limited is a consumer healthcare company engaged in the development, manufacturing, and marketing of health and wellness products. The company offers a range of nutrition, personal care, and skincare products under well-known brands, including sugar substitutes, dietary supplements, dairy-based beverages, and specialized skincare solutions. The company is headquartered in Ahmedabad, India, and its shares are listed on the BSE.

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