Transcript of the Earnings Conference call held on November 5, 2025
ZYDUSWELL · price
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Zydus Wellness reported consolidated net sales growth of 31% YoY in Q2 FY26 (12.8% for H1 FY26), with EBITDA of INR230 million, up 17.3% YoY. The company posted a net loss of INR528 million due to exceptional items, but the adjusted net loss excluding these one-offs was INR186 million. The recently acquired Comfort Click (UK-based digital VMS/healthcare platform) contributed only 1 month and 2 days to results. Seasonal brands Glucon-D and Nycil were impacted by extended monsoons, and GST 2.0 caused short-term trade disruptions. Comfort Click's brand intangibles of ~INR2,400 crores are being amortized over 15 years (~INR40 crores per quarter), funded via a 5% interest bridge loan taken for 15 months. Complan moved up from 5th to 4th in market share, and Sugar Free Green has clocked double-digit growth for 18 straight quarters. Management reaffirmed its target of 17-18% EBITDA margin over the next 2 years through gross margin improvement and operating leverage.
Despite a reported quarterly loss, the long-term margin trajectory remains on track as seasonal headwinds and acquisition-related costs are temporary. The Comfort Click acquisition expands the international digital healthcare footprint but will keep depreciation/amortization and finance costs elevated in the near term. Shareholders should watch Comfort Click's annual subsidiary disclosure and the company's progress on the 17-18% EBITDA margin roadmap.