Zydus Wellness (531335) Q2 26/27 earnings summary

Executive summary

• Q2 growth reflected stronger demand, broad brand momentum and Comfort Click consolidation; e-commerce and quick commerce continued to expand.

• Priorities include innovation, digital transformation, sustainable growth and margin expansion, alongside healthier snacking, hydration, functional personal care and supplements.

Financial highlights

• Q2 FY27 net sales were INR 11,227 million, up 74.6% YoY; revenue from operations was INR 11,266 million, up 73.2%.

• H1 net sales reached INR 25,526 million, up 70.1% YoY; revenue from operations was INR 25,636 million, up 69.6%.

• Q2 EBITDA rose 271.7% to INR 855 million; H1 EBITDA rose 83.2% to INR 3,272 million.

• Q2 PAT was INR 51 million versus a loss of INR 528 million; adjusted net profit was INR 545 million. H1 PAT was INR 1,240 million, up 65.1%.

• H1 operating cash flow was INR 3,121 million versus INR 931 million in H1 FY26.

Outlook and guidance

• Management expects double-digit H2 growth after 18% H1 growth; Comfort Click is expected to sustain double-digit growth.

• Comfort Click steady-state EBITDA margin expectation is 14%-15%; Q2 margins remained consistent.

• Domestic gross margins are targeted to hold or improve in H2 through cost management and calibrated pricing, subject to volatile input costs.

• Core EBITDA margins are expected to improve through gross-margin gains and operating leverage as sales scale.