Zydus Wellness Limited – Investor Presentation Summary

Key Operational Highlights

  • RiteBite Max Protein maintained leadership in protein snacking category with robust value and volume growth, significantly outperforming internal projections.
  • Sugar Free Green delivered double-digit growth for the 21st consecutive quarter driven by increasing volume uptake.
  • Everyuth brand jumped from 5th to 4th rank in facial cleansing category with 8.2% market share, up 40 bps year-on-year.
  • Complan retained its fourth position with 4% market share as per MAT June 2026 Nielsen report.
  • Cuticolor witnessed strong demand traction, outperforming internal expectations with positive consumer feedback.

Key drivers of operational performance: Innovation in product portfolio (Korean-flavoured Protein Chips, Protein Shake, Wafer Bar), distribution footprint expansion, digital marketing campaigns, and influencer-led advocacy.

Segment-wise Performance

  • Hair Care: Performance not specified (marked as NA)
  • Protein Snacking (RiteBite): Maintained category leadership with robust growth on quick commerce
  • Sugar-Free Portfolio: Double-digit growth in core portfolio significantly outperforming category trend
  • Everyuth (Skincare): Strong double-digit growth in Q1 FY27 outperforming category growth
  • Health Foods: Strong growth supported by strong portfolio and innovation
  • Complan: Surpassed previous quarter growth despite category degrowth

Explanation of significant changes in segment performance: Growth driven by innovation, distribution expansion, and digital marketing across most segments, though unseasonal rainfall in North and East markets impacted some brand performances.

Financial Highlights

Revenue: ₹1,429.9 million (Net Sales)

Revenue from operations: ₹1,437.0 million

EBITDA: ₹241.7 million

PAT: ₹118.9 million

EPS: Not specified (Adjusted EPS: ₹5.28)

Margins: Gross Contribution Margin 65.5% (up 1,071 bps YoY), EBITDA Margin 16.8%, PAT Margin 8.3%

YoY/QoQ comparison: Revenue grew 66.7% YoY, EBITDA grew 55.3% YoY, PAT declined 7.0% YoY

Drivers of financial performance: Higher revenue growth, gross margin expansion in core business, significantly higher margin from Comfort Click business, input cost recovery

Comparison to market estimates: Not specified

Key Risks: Raw material price fluctuations, regulatory changes, domestic and international economic conditions affecting demand/supply/price conditions

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown: International business delivered high double-digit topline growth despite geopolitical disruptions. Expanded Middle East presence with launches on noon UAE, with plans to establish physical base in UAE.

Balance Sheet Snapshot

Net Debt/Equity: Not specified

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Comfort Click acquisition has been EPS accretive

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Funding for Comfort Click acquisition through Euro denominated loan

Strategic & R&D Initiatives

Investments in Innovation: RiteBite Max Protein portfolio expansion (Roots Ghee Jaggery Bar, Korean-flavoured Protein Chips, Protein Shake, Wafer Bar portfolio), Complan Power Play Milkshake, VieMax Diabetes Care, Cuticolor scalp care products

Expected impact on growth: New launches well received by consumers, reinforcing growth momentum

Strategic Rationale: Expanding into high-growth markets (USA, UAE), reducing operational costs through efficiency improvements

Industry Trends & Business Environment

Macro/Industry Trends: Premiumization trend with consumers shifting toward higher-value products; Quick-commerce and e-commerce sustaining strong double-digit growth; Input cost trends showing recovery

Impact on Company: Margin expansion due to input cost recovery; Strong performance on quick commerce and e-commerce channels

Management Commentary & Growth Outlook

Strategic Outlook: Focus on building lifelong consumer relationships through innovation and AI-led engagement

FY Guidance: Not specified

Market Share Targets: Not specified

Risks and Opportunities: Risks include growth competition, domestic and international economic conditions affecting demand/supply/price conditions, changes in Government regulations, tax regimes

Additional Headings

ESG Updates: Featured in S&P Global Sustainability Yearbook 2026 as only Indian Food Products company, ranking 3rd globally with score of 84 (99th percentile) under ESG

Awards Recognition: Multiple awards including ABBY Awards Gold, IMPACT Digital Influencer Awards, Vegan India Conference award, Excellence in Collaborative Manufacturing Award, CII National Kaizen Competition awards