Earnings Review
High finance, amortisation costs drag Zydus Wellness Q1 Profit After Tax
This story was originally published at 14:04 IST on 4 August 2026
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--Zydus Wellness Apr-Jun consol PAT INR 1.19 bln
--Zydus Wellness Apr-Jun consol revenue INR 14.37 bln
--Zydus Wellness Apr-Jun consol PAT INR 1.19 bln vs INR 1.28 bln year ago
--Zydus Wellness Apr-Jun consol revenue INR 14.37 bln vs INR 8.61 bln year ago
--Zydus Wellness Apr-Jun consol EBITDA INR 2.42 bln vs INR 1.56 bln year ago
--Zydus Wellness Apr-Jun consol EBITDA margin 16.8% vs 18.1% year ago
--Zydus Wellness Apr-Jun consol gross margin 65.5% vs 54.8% year ago
--Zydus Wellness: Q1 PAT hit due to high interest cost on Comfort Click buy
--Zydus Wellness: Q1 PAT hit on higher depreciation cost on acquired brands
--Zydus Wellness Q1 domestic revenue up 4.6% on year; intl up 24.8%
--Zydus Wellness: Q1 gross margin up on higher margin for Comfort Click ops
--Zydus Wellness Q1 adjusted net profit INR 1.68 bln vs INR 1.33 bln yr ago
By Devanshu Singla
MUMBAI – Zydus Wellness Ltd. reported a decline in its net profit for the June quarter due to higher interest expenses on euro-denominated loan to fund the acquisition of Comfort Click Ltd. and amortisation of acquired brands. The company reported net profit of INR 1.19 billion, down 7% from INR 1.28 billion in the year-ago quarter. Sequentially, the net profit declined 27% from INR 1.62 billion. The company's adjusted net profit, which includes the amortisation cost, was at INR 1.68 billion, up 26% on year from INR 1.33 billion.
The consumer wellness company's revenue from operations rose sharply to INR 14.37 billion, up 67% from INR 8.61 billion in the year-ago quarter. Sequentially, the revenue from operations declined 3% from INR 14.85 billion.
Zydus Wellness reported 78% on-year increase in total expenses to INR 12.79 billion, driven by a sharp rise in purchases of stock-in-trade, advertisement and promotion expenses, and other expenses. The company's cost of materials consumed increased 15% to INR. 3.08 billion, advertisement and promotion expenses almost doubled to INR 2.61 billion, and purchases of stock-in-trade increased almost threefold to INR 1.43 billion.
Zydus reported depreciation and amortisation expenses of INR 571 million, which includes amortisation of acquired brands at INR 490 million. The finance costs jumped almost 10 times on year to INR 263 million, due to higher interest expenses on euro-denominated loan. The company's earnings before interest, tax, depreciation, and amortisation rose 55.3% on year to INR 2.42 billion for the June quarter. The EBITDA margin contracted to 16.8% from 18.1% in the year-ago quarter.
At 1254 IST, shares of Zydus Wellness traded over 4% lower at INR 534.7 apiece on the National Stock Exchange.
Zydus Wellness's gross margin expanded significantly to 65.5% for the June quarter, up 1,071 basis points, supported by the higher margin in the Comfort Click business. The company reported a double-digit revenue growth across key segments including Sugar Free, Everyuth, Glucon-D, and Nutralite. Nycil powder sales were impacted due to unseasonal rainfall in north and east, its key markets, which were offset by a double-digit growth in the west and south.
The company's Sugar Free brand has a market share of 96% in the sugar substitute category and Glucon-D has a market share of 59%, the company said in a press release. In the scrubs and peel-off categories, Everyuth has a market share of 49% and 76%, respectively. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj and Akul Nishant Akhoury
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