Zydus Wellness (531335) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 net sales grew 62.1% year-over-year and full-year FY 2026 net sales rose 46.4%, driven by domestic and international expansion, innovation, and strategic acquisitions.

• Gross margin expanded by 1000 bps in Q4 and 772 bps for FY26, reflecting portfolio strength and margin recovery from input cost trends.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved by the Board on May 18, 2026, with an unmodified audit opinion from statutory auditors.

• Innovation and R&D drove multiple new launches across protein, skincare, hydration, and digital-first health segments.

• International business delivered high double-digit topline growth, with successful launches in new geographies and channels.

Financial highlights

• Q4 FY26 net sales: INR 14,761 million (+62.1% YoY); FY26: INR 39,400 million (+46.4% YoY).

• Q4 FY26 EBITDA: INR 2,701 million (+42.2% YoY); FY26: INR 5,097 million (+34.2% YoY).

• Q4 FY26 PAT: INR 1,620 million (-5.8% YoY); FY26: INR 1,972 million (-43.2% YoY).

• Adjusted EPS for FY26: 11.17 (vs 10.92 in FY25); consolidated EPS: ₹10.90 (basic and diluted).

• Gross margin for FY26: 60.2% (up from 52.5% in FY25).

Outlook and guidance

• Entering FY 2027 with a focus on innovation, portfolio scale-up, and margin expansion, leveraging data-driven and AI-led capabilities.

• Management remains optimistic about double-digit growth in non-seasonal portfolios and expects seasonal brands to recover as weather normalizes.

• Operating leverage expected to improve margins as revenue grows, with a medium-term EBITDA margin aspiration of 17-18% (excluding Comfort Click).

• Continued focus on innovation, digital engagement, and expanding distribution in both domestic and international markets.

• Seasonality impacts revenue and profit, with stronger performance in the first and last quarters.