Zydus Wellness Q4 Result: Revenue jumps 63% on acquisitions; margin contracts

Zydus Wellness Ltd. reported a mixed March quarter performance, with revenue surging on the back of acquisitions and strong brand momentum, while profit declined year-on-year due to higher finance costs, amortisation expenses and one-time exceptional items related to acquisition and restructuring activities.

Its consolidated net profit for fell 5.8% to ₹162 crore from ₹172 crore in the corresponding quarter last year. Revenue, however, jumped 62.6% to ₹1,484.7 crore from ₹913 crore a year ago.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 42.2% to ₹270 crore from ₹190 crore in the year-ago quarter. EBITDA margin contracted to 18.2% from 20.8% last year.

The company said its consolidated net sales rose 62.1% year-on-year in the March quarter, aided by the post-acquisition contribution from the newly-acquired Comfort Click business.

For FY26, Zydus Wellness reported consolidated net sales of ₹3,940 crore, up 46.4% year-on-year, while EBITDA stood at ₹509.7 crore, marking a growth of 34.2%. Profit after tax for the year came in at ₹197.2 crore.

The company’s Sugar Free brand retained its leadership in the sugar substitute category with a 96.1% market share, while Sugar Free Green delivered its 20th consecutive quarter of double-digit growth.

Its RiteBite-Max Protein business continued to outperform, with the company highlighting improvement in EBITDA margin from breakeven at the time of acquisition to near double-digit levels. The company also launched new products, including Max Protein Ultimate Protein Boost, ready-to-drink beverages and Korean-flavoured protein chips during the quarter.

Zydus Wellness said Glucon-D maintained leadership in the glucose powder category with a 58.9% market share and entered the performance hydration category with the launch of ‘Glucon-D Recharge’.

Its skincare brand Everyuth continued to post strong double-digit growth, supported by innovation and expanded distribution, while Nycil retained its leadership position in the prickly heat powder category with a 33.2% market share.

The company also said its international business, excluding Comfort Click, delivered high double-digit topline growth despite geopolitical disruptions.

During the quarter, Zydus Wellness expanded the reach of its acquired international brands WeightWorld and maxmedix through launches on Boots.com in the UK and Amazon in the UAE.

Shares of the company were trading off the day's lows, at ₹498.80 as of 1.40 pm, following the result announcement on Monday, still down 0.67%. The stock has gained 36% over the last year.

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