ZYDUSWELLBSEZydus Wellness Ltd-$MediumNeutral
Announced Mon, 18 May · 13:15 IST

Investor Presentation

Mgmt Guided Margin ImprovementInvestor Communications View source PDF

ZYDUSWELL · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve 14 horizons · vs prior close
+1.9%1-day move
₹502.30
prior close
₹498.35
base price
In-mkt
timing
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+0.3-0.5-0.1-0.2+1.9+1.5-1.3-2.8-2.9-4.3+1.1+0.3+19.8
Up moveDown movePending
AI summary

Zydus Wellness reported strong Q4 FY26 revenue of ₹14,847 million, up 62.6% YoY, driven by acquisitions and organic growth. Full-year FY26 revenue reached ₹39,610 million, up 46.4% YoY. Gross margin expanded significantly by 1000 bps in Q4 to 64.8%, supported by portfolio strength and newly acquired brands. However, EBITDA margin contracted to 18.2% in Q4 (vs 20.8% in Q4 FY25) due to higher amortization from acquisitions (₹467 million in Q4 vs ₹64 million YoY) and increased finance costs from acquisition-related debt. PAT declined 5.8% YoY to ₹1,620 million in Q4, with adjusted PAT down 30.2% for FY26 at ₹2,380 million. Key brands maintained leadership: Sugar Free holds 96.1% market share with 24 bps YoY gain; Max Protein continues strong momentum; Everyuth ranks 5th in facial cleansing with 8.0% market share. International business (excluding Comfort Click) delivered high double-digit growth despite geopolitical disruptions.

Likely market impact

The stock benefits from strong revenue growth and gross margin expansion, but investors should note EBITDA margin pressure and lower PAT due to acquisition-related costs (higher depreciation, interest, and brand amortization). The ₹10,000 million capital raise and NCD repurchase signal improved balance sheet management. Long-term growth appears intact given brand leadership and new product launches.