Zydus Wellness (531335) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw resilient consumer demand, strong double-digit growth in quick commerce and e-commerce, and a shift toward premium products, with both domestic and international markets contributing significantly.

• Core brands like Sugar Free, Complan, RiteBite Max Protein, and Nycil drove topline growth, supported by innovation and premiumization, including launches like Complan Powerplay Milkshake and VieMax Diabetes Care.

• Comfort Click acquisition was EPS accretive, supporting margin expansion and global reach.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board on August 4, 2026.

Financial highlights

• Consolidated net sales reached INR 14,299 million, up 66.7% year-over-year; consolidated revenue from operations was ₹14,370 million.

• EBITDA grew 55.3% to INR 2,417 million; EBITDA margin at 16.8%.

• Adjusted net profit increased 26.5% to INR 1,679 million; consolidated net profit was ₹1,189 million.

• Gross margin improved by 1071 bps to 65.5% of net sales, aided by higher-margin Comfort Click business.

• Skin and hair care and food and nutrition segments grew 34.5% and 16%, respectively; seasonal brands declined 12%.

Outlook and guidance

• Management expects to maintain double-digit growth in international business and continue focus on premiumization, innovation, and digital engagement.

• Expansion in global markets, especially USA and Middle East, with new launches and omnichannel presence.

• Effective tax rate for FY 2027 expected at 25%, with a lower cash component this year, moving to full cash next year.

• Interest costs reduced due to transition from GBP to euro loans; expected to remain stable barring major rate changes.

• Revenues and profits are typically higher in the first and last quarters due to seasonality in product demand.