Zydus Wellness (531335) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated net sales growth of 12.7% year-on-year for Q3 FY25, with strong performance in personal care and food & nutrition segments and 15.8% YTD FY25 growth.

• Personal care segment grew 50.3% year-on-year, while food and nutrition grew 8.8% for the quarter.

• Successfully completed the acquisition of Naturell (India) Private Limited, expanding into nutrition bars and healthy snacks, with its performance included for about one month in the quarter.

• Maintained leadership in key categories: Glucon-D, Sugar Free, Nycil, and Everyuth, with significant market share gains.

• E-commerce and modern trade channels continued to show strong momentum.

Financial highlights

• Q3 FY25 net sales: INR 4,508 million (up 12.7% YoY); YTD FY25 net sales: INR 17,806 million (up 15.8% YoY).

• Q3 FY25 EBITDA: INR 148 million (up 16.5% YoY); YTD FY25 EBITDA: INR 1,897 million (up 29.9% YoY).

• Q3 FY25 PAT: INR 64 million (up 2033.3% YoY); YTD FY25 PAT: INR 1,750 million (up 50.1% YoY).

• Gross margin for Q3 FY25 stable at 47.7%; YTD FY25 gross margin improved to 51.3% (up 231 bps YoY).

• Earnings per share (consolidated, Q3 FY25): 1.01; standalone: 1.84.

Outlook and guidance

• Double-digit top-line and EBITDA growth expected to continue in FY26, with EBITDA margin targeted to improve to 17-18% over the next six to eight quarters.

• Aims for 8-10% of revenues from international markets within 4-5 years, focusing on Middle East and Africa.

• Management remains optimistic about demand revival, especially in urban areas, and expects supportive government measures to boost consumption.

• Revenues and profits are typically skewed to the first and last quarters due to seasonality.