Zydus Wellness (531335) Q4 24/25 earnings summary

Executive summary

• Achieved consolidated net sales growth of 17% YoY for Q4 and 16.2% for FY25, with volume growth of 13% in Q4 and 12.4% for FY25, reflecting strong rural demand and premiumization trends.

• Outperformed FMCG market averages in value, volume, and household penetration, especially in rural markets.

• Integration and acquisition of Naturell (India) Private Limited completed, expanding the protein and nutrition bar portfolio and contributing to growth.

• Continued innovation with multiple new product launches across nutrition, personal care, and international markets.

• Board approved audited results for FY25 with unmodified audit opinions and recommended a final dividend of ₹6.00 per share, subject to shareholder approval.

Financial highlights

• Q4 FY25 net sales rose to ₹9,106 million; FY25 net sales up to ₹27,225 million; Q4 EBITDA grew 17.1% YoY to INR 1,900 million; FY25 EBITDA rose 23.2% to INR 3,797 million.

• PAT increased 14.4% in Q4 and 30.0% in FY25; consolidated net profit for FY25: ₹3,459 million.

• EPS for FY25: ₹54.52; net profit margin improved by 1.3 percentage points YoY to 12.7%.

• Board recommended a final dividend of ₹6 per share (60%), a 20% increase YoY, and a 1:5 stock split, subject to shareholder approval.

• Cash conversion from operations at ₹3,800 million, nearly 100% of EBITDA.

Outlook and guidance

• Targeting EBITDA margin improvement to 17%-18% over the next two to three years, leveraging gross margin expansion, pricing power, and operating leverage.

• Committed to double-digit growth, expanding consumer base and category penetration, and scaling up Naturell India.

• No cash tax payout expected until FY27; seasonality in revenues and profits, with stronger performance in Q1 and Q4.

• Targeting 8–10% of revenues from international business in the next 4–5 years.