Zydus Wellness (531335) Q4 24/25 earnings summary

Executive summary

• Achieved consolidated net sales growth of 17% YoY for Q4 and 16.2% for FY25, with volume growth of 13% in Q4 and 12.4% in FY25, maintaining a 10% CAGR since FY21.

• Outperformed the FMCG market in India in value, volume, and household penetration, driven by strong rural and urban demand, premiumization, and digital channel expansion.

• Integration and acquisition of Naturell (India) Private Limited (RiteBite Max Protein) completed, delivering over 50% growth in four months and supporting long-term strategy.

• Board approved audited results for FY25, with a final dividend of ₹6.00 per share and a 1:5 stock split, subject to shareholder approval.

• Digital and quick commerce channels expanded rapidly, with quick commerce accounting for 41% of e-commerce sales.

Financial highlights

• Q4 FY25 net sales rose 17.0% YoY to INR 9,106 million; FY25 net sales up 16.2% to INR 26,912 million; consolidated revenue for FY25: ₹27,225 million.

• Q4 EBITDA grew 17.1% YoY to INR 1,900 million; FY25 EBITDA up 23.2% to INR 3,797 million.

• FY25 net profit (PAT) grew 30% YoY to INR 3,459 million; consolidated EPS for FY25: ₹54.52; net profit margin improved by 1.3 percentage points YoY.

• Cash conversion from operations matched EBITDA at 100%, with net cash from operating activities (consolidated) for FY25: ₹3,800 million.

• Board recommended a final dividend of ₹6 per share (20% increase YoY) and a 1:5 stock split.

Outlook and guidance

• Targeting EBITDA margins of 17%-18% over the next two to three years, driven by gross margin improvement and operating leverage.

• Committed to double-digit growth, expanding consumer base, and category penetration; aiming for 8-10% of revenues from international business in 4-5 years.

• No cash tax payout expected until FY27; seasonality in revenues and profits, with stronger Q1 and Q4.