Zydus Wellness Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Zydus Wellness Ltd-$ filed with BSE on 22 May 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 Q4 FY26 net sales growth of 62.1%, driven by international business including Comfort Click, which grew 31.4% like-to-like, while the domestic business grew 1.7%. EBITDA rose 42.2% for the quarter to INR 2,701 million, while net profit declined 5.8% during the quarter due to acquisition-related finance costs, amortization, and exceptional items. Management attributed softness in the seasonal portfolio to delayed summer weather and a disrupted retail inventory pipeline, while highlighting continued growth in RiteBite, Comfort Click, Everyuth, and Nutralite.
Numbers mentioned
Net sales growth: 62.1% (Q4 FY26)
p. 4
“Coming to the company's financial performance, net sales for quarter 4, financial year '26 registered growth of 62.1%.”
Tarun Arora, page 4 of the filed PDF · View the filing
International business like-to-like growth: 31.4% (Q4 FY26)
p. 4
“The international business, including Comfort Click business, delivered a like-to-like growth of 31.4%, while the domestic business grew by 1.7%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Domestic business growth: 1.7% (Q4 FY26)
p. 4
“The international business, including Comfort Click business, delivered a like-to-like growth of 31.4%, while the domestic business grew by 1.7%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Seasonal brands growth: -9.8% (Q4 FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 9.8%, whereas the skin and hair care brands registered a growth of 39.7%, and food and nutrition brands grew by 9.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Skin and hair care brands growth: 39.7% (Q4 FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 9.8%, whereas the skin and hair care brands registered a growth of 39.7%, and food and nutrition brands grew by 9.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Food and nutrition brands growth: 9.4% (Q4 FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 9.8%, whereas the skin and hair care brands registered a growth of 39.7%, and food and nutrition brands grew by 9.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net sales growth: 46.4% (FY26)
p. 4
“For financial year '26, net sales registered growth of 46.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
International business like-to-like growth: 29.5% (FY26)
p. 4
“The international business, including Comfort Click business, delivered a like-to-like growth of 29.5%, while the domestic business grew by 2.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Domestic business growth: 2.4% (FY26)
p. 4
“The international business, including Comfort Click business, delivered a like-to-like growth of 29.5%, while the domestic business grew by 2.4%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Seasonal brands growth: -18.8% (FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 18.8%, whereas the skin and hair care brands registered a growth of 21.9%, and food and nutrition brands grew by 15.5%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Skin and hair care brands growth: 21.9% (FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 18.8%, whereas the skin and hair care brands registered a growth of 21.9%, and food and nutrition brands grew by 15.5%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Food and nutrition brands growth: 15.5% (FY26)
p. 4
“Within the domestic business, the seasonal brands declined by 18.8%, whereas the skin and hair care brands registered a growth of 21.9%, and food and nutrition brands grew by 15.5%.”
Tarun Arora, page 4 of the filed PDF · View the filing
Organized channel saliency: 30% (FY26)
p. 4
“As per the internal data, the domestic business continued to witness a steady shift towards organized channel, with saliency improving to 30% in financial year '26 from 24% in financial year '25, driven by premiumization as well as strong growth in modern trade and e-commerce channels.”
Tarun Arora, page 4 of the filed PDF · View the filing
EBITDA: INR 2,701 million (Q4 FY26)
p. 4
“On the EBITDA front, the company reported a growth of 42.2% for the quarter, reaching INR 2,701 million, an increase of 34.2% for the full year, closing at INR 5,097 million.”
Tarun Arora, page 4 of the filed PDF · View the filing
EBITDA: INR 5,097 million (FY26)
p. 4
“On the EBITDA front, the company reported a growth of 42.2% for the quarter, reaching INR 2,701 million, an increase of 34.2% for the full year, closing at INR 5,097 million.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit growth: -5.8% (Q4 FY26)
p. 4
“Net profit declined by 5.8% during the quarter and 43.2% for the year.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit growth: -43.2% (FY26)
p. 4
“Net profit declined by 5.8% during the quarter and 43.2% for the year.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit excluding exceptional items and amortization growth: 17% (Q4 FY26)
p. 4
“However, net profit excluding exceptional items and amortization of acquired brands registered a growth of 17% and 2.3% for quarter and year, respectively.”
Tarun Arora, page 4 of the filed PDF · View the filing
Net profit excluding exceptional items and amortization growth: 2.3% (FY26)
p. 4
“However, net profit excluding exceptional items and amortization of acquired brands registered a growth of 17% and 2.3% for quarter and year, respectively.”
Tarun Arora, page 4 of the filed PDF · View the filing
Sweetener portfolio market share expansion: 24 basis points (MAT March 2026)
p. 5
“Within the sweetener portfolio, market share expanded by 24 basis points as per MAT March 2026 report of Nielsen and IQVIA, while Sugar Free Green delivered 20th consecutive quarter of double-digit growth.”
Tarun Arora, page 5 of the filed PDF · View the filing
Quick commerce share of total business: 7% to 8%
p. 9
“7% to 8% of total business.”
Tarun Arora, page 9 of the filed PDF · View the filing
Modern trade plus e-commerce share of domestic business: about 30%
p. 9
“So overall, online - sorry modern trade plus e-commerce, organized trade is about 30% of our domestic business. Quick commerce will be 7%-8%.”
Tarun Arora, page 9 of the filed PDF · View the filing
Gap between Comfort Click reported growth and constant currency growth: about 3%
p. 12
“Yes. So we also mentioned in our investor presentation and between the total growth of Comfort Click and Constant Currency growth, there is a gap of about 3%.”
Umesh Parikh, page 12 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.
EBITDA margin — 17-18% · next couple of years
stated as an aspiration by Tarun Arora
p. 20
“I think there are no new numbers. We've talked about in the next couple of years, we hope to get to our 17-18.”
Tarun Arora, page 20 of the filed PDF · View the filing
Comfort Click EBITDA margin — around 14% EBITDA margin
stated conditionally by Umesh Parikh
p. 12
“So for Comfort Click, I think we are holding on to what we said earlier, and we are in line with our expectation or slightly exceeded.”
Umesh Parikh, page 12 of the filed PDF · View the filing
Comfort Click EPS accretion — EPS accretive · next two years
stated firmly by Umesh Parikh
p. 20
“Yes. I mean, we have become EPS accretive last quarter, but for the next two years. We, as we said, we maintain our guidance.”
Umesh Parikh, page 20 of the filed PDF · View the filing
Seasonal brands growth — consistent double-digit growth · three to four-year period
stated as an aspiration by Tarun Arora
p. 10
“So we are quite hopeful that it should come back on track and over a three to four-year period should deliver a consistent double-digit growth.”
Tarun Arora, page 10 of the filed PDF · View the filing
Corporate tax rate — 25% bracket · FY27-28
stated firmly by Umesh Parikh
p. 11
“Yes. So FY 27- 28 will be in the 25% bracket. But 26-27, it will be kind of cash plus deferred tax asset used. So the mix of two.”
Umesh Parikh, page 11 of the filed PDF · View the filing
Operating leverage
stated firmly by Umesh Parikh
p. 9
“Certainly, as we have been telling in various conferences, our operating leverage will definitely play out.”
Umesh Parikh, page 9 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.
Management said rains in East and a delayed summer disrupted the seasonal category pipeline, and expressed hope for recovery as the season progresses.
Answered by Tarun Arora
Asked by Tejash Shah: What weighed on seasonal portfolio growth this quarter and how soon will it recover?
p. 6
“So we are hopeful that as summers progress things could get better, but sadly it was less than expected and the temperatures were lower than normal.”
Tarun Arora, page 6 of the filed PDF · View the filing
Management attributed the shortfall to mix effects from the underperforming seasonal portfolio which carries above-average gross margin and EBITDA contribution.
Answered by Umesh Parikh
Asked by Tejash Shah: How soon can the company reach its 17-18% margin aspiration given operating leverage has not materialized?
p. 7
“Largely due to headwinds on this seasonal portfolio, which has more than average gross margin for the company and which also has more than average EBITDA for the company has impacted the overall PBT and PAT.”
Umesh Parikh, page 7 of the filed PDF · View the filing
Management cited a large European VMS market, expansion into new European countries, and early-stage bets in the US and UAE as growth drivers.
Answered by Tarun Arora
Asked by Ronak Shah: What is driving Comfort Click's sharp growth and how is the US scaling strategy progressing?
p. 7
“So on Comfort Click, I think it's been a high-growth business as we acquired, and we've talked about it, 57% CAGR five years before acquisition.”
Tarun Arora, page 7 of the filed PDF · View the filing
Management said Comfort Click is in line with or slightly ahead of expectations and became EPS accretive in Q4.
Answered by Umesh Parikh
Asked by Mayur Parkeria: Is Comfort Click on track for its previously stated ~14% EBITDA margin and PBT breakeven in FY27?
p. 12
“So for Comfort Click, I think we are holding on to what we said earlier, and we are in line with our expectation or slightly exceeded. As far as Q4 is concerned, on Comfort Click business itself, we have become EPS accretive.”
Umesh Parikh, page 12 of the filed PDF · View the filing
Management reiterated the 17-18% margin target excluding Comfort Click over the next couple of years.
Answered by Tarun Arora
Asked by Harsh Dubey: What is the medium and long-term EBITDA margin aspiration?
p. 20
“I think there are no new numbers. We've talked about in the next couple of years, we hope to get to our 17-18. Now we have without Comfort Click.”
Tarun Arora, page 20 of the filed PDF · View the filing
Management said impact has been limited to a small portion of Middle East business, with the rest largely in control.
Answered by Tarun Arora
Asked by Yashowardhan Agarwal: Is management seeing supply-side challenges or inflationary pressures from the geopolitical conflict?
p. 18
“So we've not had supply side challenges beyond certain businesses in Middle East, which is still a very small portion of our business. Rest of the things are largely so far have been in control.”
Tarun Arora, page 18 of the filed PDF · View the filing
Management said there were no plans to divest any product categories.
Answered by Dr. Sharvil Patel
Asked by Yashowardhan Agarwal: Are there any plans to divest slow-growing categories to fund higher-growth areas?
p. 18
“I think our allocation of funds are appropriate to the brand. So I don't see any major changes. I think all brands have appropriate funding required. So there's no other plans or any other changes to the business.”
Dr. Sharvil Patel, page 18 of the filed PDF · View the filing
Risks flagged
Delayed and weaker-than-normal summer season disrupted seasonal portfolio inventory pipeline
p. 6
“It was raining in March and right up to mid of April and therefore there has been a delayed summer.”
Tarun Arora, page 6 of the filed PDF · View the filing
Rains in East region particularly impacted the seasonal business
p. 5
“We've seen, especially in March, there were rains and East was particularly impacted.”
Tarun Arora, page 5 of the filed PDF · View the filing
Nutralite faced gas supply headwinds
p. 5
“Nutralite brand delivered consistent double-digit growth despite gas supply headwinds, supported by a strong portfolio innovation and AI-led consumer insights.”
Tarun Arora, page 5 of the filed PDF · View the filing
Supply side challenges in certain Middle East businesses due to geopolitical disruptions
p. 18
“So we've not had supply side challenges beyond certain businesses in Middle East, which is still a very small portion of our business.”
Tarun Arora, page 18 of the filed PDF · View the filing
Complan operates in a degrowing core category
p. 15
“So there are consumers seeking more, so we believe there is a path to getting growth.”
Tarun Arora, page 15 of the filed PDF · View the filing
Concentration of annual results in seasonal quarters exposes the company to weather-driven volatility
p. 16
“So from a very strategic perspective, are you comfortable with this external driver to decide our annual fate in every year because no matter how much we put an effort for three quarters, one bad quarter and then we actually go back to square one because of the volatility of weather and external exigencies?”
Tejash Shah, page 16 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.