Zydus Wellness Limited Earnings Summary — Q4 FY2026
Zydus Wellness Posts Record Quarterly Sales Amidst Seasonality Shift and Elevated Borrowings
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.2% sequentially in Q1 FY2027.
- Revenue of ₹1,437 Cr is 66.9% higher year-on-year.
- Revenue has compounded at 31.0% annualised over the last 10 quarters.
- Net profit of ₹119 Cr is 7.0% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -12.5% annualised across the period.
- Operating margin stands at 16.8% in Q1 FY2027.
- Operating margin compressed by 125 bps year-on-year.
- Over the last two years operating margin has contracted by 165 bps.
- PBT margin is 11.3%.
- Expenses grew 69.5% against revenue growth of 66.9%.
- Operating profit of ₹242 Cr is 55.3% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 56/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 1,437 | 1,485 | 965 | 651 | 861 | 913 | 462 | 493 | 841 | 783 |
| Expenses | Accelerating | 1,195 | 1,215 | 904 | 628 | 705 | 723 | 447 | 473 | 686 | 620 |
| Operating Profit | Volatile | 242 | 270 | 61 | 23 | 156 | 190 | 15 | 20 | 155 | 162 |
| Operating Margin | Volatile | 16.8% | 18.2% | 6.3% | 3.5% | 18.1% | 20.8% | 3.2% | 4.0% | 18.5% | 20.7% |
| Other Income | Volatile | 4 | 1 | -6 | -33 | 3 | 1 | 4 | 10 | 5 | 4 |
| Interest | Volatile | 26 | 39 | 41 | 16 | 3 | 4 | 3 | 1 | 4 | 6 |
| Depreciation | Improving | 57 | 55 | 56 | 25 | 11 | 13 | 5 | 5 | 5 | 6 |
| Profit Before Tax | Volatile | 162 | 177 | -41 | -51 | 145 | 173 | 10 | 24 | 152 | 154 |
| Tax | Volatile | 43 | 15 | -2 | 2 | 17 | 2 | 4 | 3 | 4 | 4 |
| Net Profit | Volatile | 119 | 162 | -40 | -53 | 128 | 172 | 6 | 21 | 148 | 150 |
| Net Margin | Volatile | 8.3% | 10.9% | -4.1% | -8.1% | 14.9% | 18.8% | 1.4% | 4.2% | 17.6% | 19.2% |
Key Takeaways
- Revenue reached a record quarterly high of ₹1,485 Cr, up 62% YoY, indicating strong off-take of summer brands like Glucon-D.
- Operating Profit Margins (OPM) contracted to 18% from 21% YoY, despite the massive scale, suggesting input cost pressures.
- Net Profit fell slightly to ₹162 Cr compared to ₹172 Cr in the prior year's quarter, hindered by a sharp rise in interest and depreciation.
- Borrowings escalated significantly from ₹188 Cr in March 2025 to ₹3,203 Cr in March 2026, likely due to fresh asset acquisitions.
- The business remains highly seasonal, with the March quarter providing the bulk of annual operating profit compared to losses in Sep/Dec quarters.
- Inventory levels on the balance sheet nearly doubled YoY to ₹1,836 Cr, indicating a large build-up for the upcoming peak season.
- Compounded profit growth over the last 5 years remains negative (-2%), highlighting a struggle to translate revenue scale into earnings.
Management Guidance
Management remains focused on maintaining dominance in the Sugar Free (Sugar Substitute) and Glucon-D (Glucose) categories while attempting to scale Complan and Nycil.
Sentiment Shift
Stable
While top-line growth is aggressive, the sharp increase in debt and stagnant bottom-line growth keep the outlook cautious.
Outlook
The company's performance is heavily dependent on the summer season; however, the massive jump in fixed assets and borrowings suggests a strategic shift or major expansion that may impact long-term capital efficiency.
From the Annual Report (Key Quotes)
“Zydus Wellness transitioned from a niche personal care player to a large-scale FMCG conglomerate.”
“While revenue scaled significantly, the transition has been marked by a substantial compression in return ratios.”
“Portfolio of iconic legacy brands (Complan, Nycil) provides market leadership but faces intense competition.”
Official Quarterly Documents
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This summary is AI-generated from Zydus Wellness Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.