Zydus Wellness (531335) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong double-digit revenue and volume growth, driven by organic brands, acquisitions, and continued e-commerce and quick commerce momentum.

• Portfolio expansion included new launches in Nutralite Professional, Comfort Click, and international expansion of WeightWorld and RiteBite Max Protein.

• Complan maintained its market share, Everyuth delivered double-digit YTD growth, and Sugar Free Green achieved its 19th consecutive quarter of double-digit growth.

• Gross margin expanded significantly, supported by portfolio strength and new brand integration.

• Adjusted PAT declined due to higher finance costs, amortization from acquisitions, and exceptional items.

Financial highlights

• Q3 FY26 net sales grew 113.7% YoY to INR 9,633 million; food and nutrition segment up 134%, personal care down 1.4%.

• Gross margin for Q3 FY26 was 63.3%, up 1561 bps YoY; EBITDA reached INR 610 million, up 312.2% YoY, with margin at 6.3%.

• Net loss including exceptional items and non-cash amortization was INR 399 million; adjusted net loss (excluding exceptional items) was INR 333 million.

• Consolidated revenue for the quarter was 9,633 million, up from 6,429 million YoY; consolidated net loss for the quarter was (399) million, compared to a profit of 64 million last year.

• Standalone revenue from operations for the quarter was 1,526 million, up from 997 million YoY; standalone net profit for the quarter was 121 million.

Outlook and guidance

• Annualized gross margin expected in the 60%-67% range, with Comfort Click being margin accretive.

• Comfort Click expected to deliver double-digit top-line growth and 14%+ EBITDA margins; base business targeted to reach 16%-18% EBITDA margins over the next two years.

• Management expects FY26 to be the bottom for PAT, with accretion from next year; integration synergies and margin efficiencies from acquisitions to support profitability.

• Incremental growth anticipated from new product launches, geographic expansion, and seasonal opportunities in 2026.

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