Zydus Wellness Limited — Investor Meet, 10-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Zydus Wellness reported Q2 consolidated net sales grew 31%, with H1 up 12.8%, largely boosted by the new Comfort Click acquisition, offsetting seasonal brand softness. Consolidated EBITDA reached INR 23 Cr, up 17.3%. The company posted a net loss of INR 52.8 Cr (adjusted loss INR 18.6 Cr, excluding one-time acquisition costs). Comfort Click's acquisition, financed by a 5% bridge loan, is cash EPS accretive; its brands are amortized over 15 years (~INR 40 Cr/quarter).

Management highlighted Q2 sales faced headwinds from early monsoons and temporary GST 2.0 disruptions, particularly for seasonal brands like Glucon-D and Nycil. Non-seasonal products showed strong resilience, with e-commerce and quick commerce channels maintaining robust growth. New launches like Nutralite Activ Peanut Butter and RiteBite millet wafer protein bars are gaining traction. The RiteBite Max Protein business has exceeded expectations, expanding distribution and entering international markets. Complan climbed to fourth in market share, and Sugar Free Green continued its strong double-digit growth.

The company remains committed to achieving 17-18% EBITDA margins for its core business within two years, driven by gross margin improvements and operational leverage. Management is also reviewing separating international and India segment reporting. Despite challenges, the management tone conveys confidence in strategic growth and recent acquisitions.