Zydus Wellness Limited — PPTs, 05-11-2025: Investor Presentation

Zydus Wellness delivered mixed results for the quarter and half-year. Net Sales for Q2 FY26 jumped 31% YoY to ₹642.9 Cr, with H1 FY26 sales growing 12.8% YoY to ₹1,500.6 Cr. However, adjusted profit after tax (PAT) dipped, showing a negative ₹18.6 Cr for Q2 FY26 and a 32.8% YoY decline for H1 FY26 to ₹109.3 Cr. This was primarily due to finance costs from the Comfort Click acquisition, amortization, and one-time consolidation expenses. A positive note: Gross Contribution Margin expanded significantly, up 483 bps in Q2 FY26 to 52.4%, highlighting strong portfolio performance.

The company is actively expanding its global footprint into the UK, EU, and USA, boosted by strategic acquisitions to accelerate its digital business. Key growth drivers include aligning with global health & wellness trends, particularly in low-sugar/no-sugar, high-protein, and functional skincare categories. Recent launches like the Millet Wafer Protein Bar and Nutralite Activ Peanut Butter underscore innovation. Management expects the Comfort Click acquisition to be cash EPS-accretive, excluding one-off costs, and remains focused on growth despite seasonal and GST-related market disruptions.