Zydus Wellness Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Zydus Wellness Ltd-$ filed with BSE on 10 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Zydus Wellness reported consolidated net sales of INR 14,299 million for Q1 FY27, up 66.7% year-on-year, with EBITDA growing 55.3% to INR 2,417 million while net profit declined 7%. Management attributed part of the growth to the Comfort Click international business and continued premiumization, while seasonal brands such as Nycil and Glucon-D were impacted by unseasonal rainfall in East and North India. Domestic business grew 4.6% with Skin and Hair Care and Food & Nutrition delivering 34.5% and 16% growth respectively, while seasonal brands declined 12%.
Numbers mentioned
Consolidated net sales: INR 14,299 million (Q1 FY27)
p. 4
“the company reported consolidated net sales of INR 14,299 million, reflecting a growth of 66.7% year-on-year”
Tarun Arora, page 4 of the filed PDF · View the filing
International business like-to-like growth: 24.8% (Q1 FY27)
p. 4
“Our international business, including the Comfort Click business, delivered a like-to-like growth of 24.8% while the domestic business grew by 4.6%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Skin and Hair Care growth: 34.5% (Q1 FY27)
p. 4
“Within the domestic portfolio, Skin and Hair Care and Food & Nutrition continued their strong momentum, delivering growth of 34.5% and 16%, respectively.”
Tarun Arora, page 4 of the filed PDF · View the filing
Seasonal brands decline: 12% (Q1 FY27)
p. 4
“Seasonal brands, however, declined by 12%, primarily due to softer summer season.”
Tarun Arora, page 4 of the filed PDF · View the filing
Organized channel saliency: 38% (Q1 FY27)
p. 4
“In Q1 FY27, our organized channel saliency reached an industry-leading 38% with modern trade contributing 17% and digital commerce about 21%.”
Tarun Arora, page 4 of the filed PDF · View the filing
EBITDA: INR 2,417 million (Q1 FY27)
p. 4
“On the EBITDA front, company reported a growth of 55.3% for the quarter, reaching to INR 2,417 million.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit growth excluding amortization: 26.5% (Q1 FY27)
p. 4
“However, net profit, excluding amortization of acquired brands registered a growth of 26.5% for the quarter.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit decline: 7% (Q1 FY27)
p. 4
“Net profit declined by 7% during the quarter.”
Tarun Arora, page 4 of the filed PDF · View the filing
Effective tax rate: close to 27% (Q1 FY27)
p. 6
“the current effective tax for this quarter, Q1, is close to 27%, and that's largely because of the disallowance of some of the items because of thin cap rule in the U.K.”
Umesh Parikh, page 6 of the filed PDF · View the filing
A&P spend as percentage of sales: 18.2% (Q1 FY27)
p. 12
“So, at our overall reported level, our A&P as a percentage of total sales is at 18.2% for the quarter.”
Tarun Arora, page 12 of the filed PDF · View the filing
RiteBite Max Protein reported number at acquisition: INR 120 crores (Q3 FY24)
p. 11
“When we acquired, we had reported, we acquired in quarter 3 FY24, reported number was close to about INR130 odd crores -- sorry, INR120 crores.”
Tarun Arora, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
International business growth rate — double digits
stated firmly by Tarun Arora
p. 5
“We normally don't give a forward-looking. We just said double digits, so that's what we will maintain.”
Tarun Arora, page 5 of the filed PDF · View the filing
Effective tax rate — 25% · FY2027
stated firmly by Umesh Parikh
p. 6
“Yes, that includes the deferred tax, but the cash component would be lower.”
Umesh Parikh, page 6 of the filed PDF · View the filing
Cash tax component — 25% entirely in cash · next year
stated conditionally by Umesh Parikh
p. 6
“And from next year, we probably would be in the 25% tax rate entirely in cash.”
Umesh Parikh, page 6 of the filed PDF · View the filing
Finance cost run rate
stated conditionally by Umesh Parikh
p. 6
“Unless there is too much of variability in the base rate in euro currency. Otherwise, if it remains the same or around the same, the effective interest will be around the same amount.”
Umesh Parikh, page 6 of the filed PDF · View the filing
RiteBite Max Protein growth momentum
stated as an aspiration by Tarun Arora
p. 7
“We are expecting it to maintain its growth momentum.”
Tarun Arora, page 7 of the filed PDF · View the filing
Comfort Click EBITDA and profit before tax
stated conditionally by Umesh Parikh
p. 8
“And If the same momentum continues, which we expect, I think we'll register increase in the margin -- the net margin as well as the profit before tax -- EBITDA as well as profit before tax.”
Umesh Parikh, page 8 of the filed PDF · View the filing
Complan growth momentum
stated as an aspiration by Tarun Arora
p. 10
“So, we are hopeful that this momentum will continue.”
Tarun Arora, page 10 of the filed PDF · View the filing
Everyuth B2B expansion
stated firmly by Tarun Arora
p. 12
“Not right now. We remain focused on B2C as of now.”
Tarun Arora, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
No constraints were seen; management reiterated a double-digit growth expectation without providing specific forward guidance.
Answered by Tarun Arora
Asked by Hardik Jatheliya: Was international business growth constrained by supply chain issues, and is 25% growth sustainable?
p. 5
“We normally don't give a forward-looking. We just said double digits, so that's what we will maintain.”
Tarun Arora, page 5 of the filed PDF · View the filing
Current quarter tax rate is elevated due to UK thin cap rules; going forward it should normalize to around 25% with a lower cash component.
Answered by Umesh Parikh
Asked by Simran Kumari: What is the outlook on effective tax rate for FY27 and FY28?
p. 6
“So, as probably you would have noticed that the current effective tax for this quarter, Q1, is close to 27%, and that's largely because of the disallowance of some of the items because of thin cap rule in the U.K.”
Umesh Parikh, page 6 of the filed PDF · View the filing
East region rains offset gains in north, west and south for Glucon-D and Nycil, with recovery seen in the second half of the quarter.
Answered by Tarun Arora
Asked by Umang Shah: What caused the 12% decline in the seasonal portfolio given geographic salience assumptions?
p. 7
“North and east are the most significant part of our portfolio, the highest salient, where east has actually impacted us, and therefore while north and west and south have seen a positive momentum, but all that gain has been nullified by east, where there were continued rains, especially in April and May.”
Tarun Arora, page 7 of the filed PDF · View the filing
Management expects margin and profit before tax to improve if the current momentum in Comfort Click continues.
Answered by Umesh Parikh
Asked by Mayur Parkeria: Can Comfort Click report positive EBITDA in the seasonally weaker September and December quarters despite higher fixed costs?
p. 8
“So, as we have mentioned earlier also, that Comfort Click has become EPS accretive from quarter 4 of the last financial year and continue to do so.”
Umesh Parikh, page 8 of the filed PDF · View the filing
Products are OTC and digital-only with no prescription requirement; the US business is still small but growing well.
Answered by Tarun Arora
Asked by Mayur Parkeria: Do Comfort Click products require prescriptions given the GLP-1 narrative, and how is the US entry progressing?
p. 9
“Too early to predict, but right now very very small, but growing well.”
Tarun Arora, page 9 of the filed PDF · View the filing
Management does not expect a rollover issue given current inventory levels and product shelf life, though final numbers will confirm.
Answered by Tarun Arora
Asked by Ronak Shah: Could higher channel inventory from this season disrupt the next season's sales cycle?
p. 9
“I don't see this really rolling over to a next year issue.”
Tarun Arora, page 9 of the filed PDF · View the filing
Consistent execution across nutrition segments, celebrity endorsement, and new product formats like Complan Power Play have supported growth.
Answered by Tarun Arora
Asked by Aniket Kamble: What has driven Complan's growth despite category degrowth?
p. 10
“We have also got celebrity Vaibhav Sooryavanshi, who's been a Complan boy now for a couple of quarters.”
Tarun Arora, page 10 of the filed PDF · View the filing
Overall A&P spend is 18.2% of sales including Comfort Click, similar to last year on a like-for-like core business basis.
Answered by Tarun Arora
Asked by Aniket Kamble: What is the A&P spend as a percentage of sales this quarter?
p. 12
“So, at our overall reported level, our A&P as a percentage of total sales is at 18.2% for the quarter.”
Tarun Arora, page 12 of the filed PDF · View the filing
Risks flagged
Unseasonal summer rains disrupted demand for weather-sensitive brands, particularly Nycil and Glucon-D
p. 3
“seasonal demand was impacted by frequent summer showers across Eastern region and parts of North India in otherwise highly salient geographies, which disrupted the usual summer consumption pattern and softened demand for weather-sensitive brands, particularly Nycil.”
Tarun Arora, page 3 of the filed PDF · View the filing
Divergent commodity price and currency movements affecting input costs
p. 3
“On the cost front, input trends remained largely manageable despite divergent movements in commodity prices and currency.”
Tarun Arora, page 3 of the filed PDF · View the filing
Ongoing geopolitical disruptions creating uncertainty
p. 3
“While ongoing geopolitical disruptions continue to create uncertainty, the impact on the company has remained limited to proactive mitigation measures.”
Tarun Arora, page 3 of the filed PDF · View the filing
Higher retailer inventory slowing Nycil uptake
p. 4
“Nycil's performance was significantly impacted due to unseasonal rainfall in the North and East, key saliency markets with double-digit growth in West and South, along with cautious channel stocking and slower uptake driven by higher retailer inventory over the last year.”
Tarun Arora, page 4 of the filed PDF · View the filing
Category degrowth affecting Complan
p. 10
“There is headwinds, thanks to what the category faces, but we've been able to navigate now for two, three quarters.”
Tarun Arora, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.