India · Delayed Price · Currency is INR Zydus Wellness Earnings Call Transcripts
Fiscal Year 2026
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Q3 FY26 saw 113.7% sales growth, driven by food and nutrition, Comfort Click integration, and strong e-commerce momentum. Gross margin rose to 63%, EBITDA margin to 6.3%, but net loss persisted due to acquisition-related costs. Margin and growth improvements are expected in FY27.
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Consolidated sales grew 31% for the quarter, driven by the Comfort Click acquisition and resilient non-seasonal brands, while seasonal brands faced weather-related headwinds. EBITDA rose 17.3% year-over-year, with management reaffirming a 17-18% EBITDA margin target over two years.
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Net sales grew 2.2% year-over-year, with double-digit growth in non-seasonal brands offsetting seasonal headwinds. EBITDA was flat, while PAT declined due to non-cash items. Rural and digital channels led growth, and recent acquisitions outperformed expectations.
Fiscal Year 2025
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Q4 and FY25 saw double-digit revenue and profit growth, with strong rural demand, margin expansion, and leadership in key categories. Digital and quick commerce channels accelerated, and recent acquisitions like Ritebite delivered robust growth. Dividend and stock split proposed.
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Q3 FY25 saw 12.7% sales growth and 16.5% EBITDA growth, led by strong personal care and food & nutrition segments. Acquisition of Naturell and new product launches supported momentum, while gross margins improved despite inflation. Double-digit growth and margin expansion are expected to continue.
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Net sales grew 12.1% year-on-year, led by strong volume growth and robust performance in personal care and food segments. Gross margin improved despite rising input costs, and the Naturell acquisition is expected to be EPS accretive next year.
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Q1 saw record sales with 20% revenue growth and 17.1% volume growth, led by strong rural demand and robust performance in personal care and food segments. Gross margin and EBITDA improved significantly, with management guiding for sustained double-digit growth and higher margins over the next two to three years.