Zydus Wellness (531335) Q4 24/25 earnings summary

Executive summary

• Achieved strong double-digit growth in revenue and profitability for Q4 and FY25, with consolidated net sales up 17% YoY in Q4 and 16.2% in FY25, and volume growth of 13% in Q4 and 12.4% in FY25; outperformed the FMCG market, especially in rural areas.

• Integration and acquisition of Naturell (India) Private Limited completed, contributing to portfolio expansion and steady growth, with Ritebite delivering over 50% growth in four months.

• Continued innovation with multiple new product launches across nutrition, personal care, and international markets, including Everyuth sheet masks and Sugar Free D'lite Cookies.

• Board approved audited results for FY25, recommended a final dividend of ₹6 per share (20% increase YoY), and a 1:5 stock split, subject to shareholder approval.

• Achieved ESG score in the 99th percentile among 390 peers, with a 96% disclosure rate and completed biodiversity and climate risk studies.

Financial highlights

• Q4 FY25 consolidated net sales rose 17.0% YoY to ₹9,106 million; FY25 consolidated net sales up 16.2% to ₹27,225 million; Q4 EBITDA grew 17.1% YoY to INR 1,900 million; FY25 EBITDA increased 23.2% to INR 3,797 million.

• FY25 consolidated net profit (excluding exceptional items) up 30% to ₹3,410 million; reported consolidated net profit at ₹3,459 million.

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

• Gross margin improved to 54.8% in Q4 and 52.5% in FY25, up 168 bps YoY, driven by strategic hedging and favorable product mix.

• Cash conversion from operations matched EBITDA at 100%, with consolidated net cash from operating activities at ₹3,800 million.

Outlook and guidance

• Targeting EBITDA margins of 17%-18% over the next two to three years, driven by gross margin improvement and operating leverage.

• Committed to double-digit growth, expanding consumer base, category penetration, and aiming for 8–10% of revenues from international business in 4–5 years.

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