In , Zydus Wellness Ltd (FMCG - Personal Care) is outperforming Nifty 500 with +34.5% relative strength. Fundamentals: Average. On a 7-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Comfort Click Integration: Full quarter inclusion
Impact: 1561 bps GM expansion
“the gross margin jumped because of combination of the business, mainly the Comfort Click business coming in for the whole quarter.”
What: Gross Margin %: 63.3%
Impact: 312.2% EBITDA growth
“This quarter, the whole mix has got lifted further because Comfort Click operates at a much higher level.”
What: New Markets: Poland, Finland, Portugal
“the WeightWorld brand advanced its European expansion by entering Poland, Finland, and Portugal, strengthening Comfort Click's regional footprint.”
What: New SKUs: 5 gummy variants
“it deepened its portfolio with the launch of 4 adult gummies variants, 1 probiotic gummies variant for kids and Pure Himalayan Shilajit Resin.”
What: Sweetener Market Share: 80 bps expansion
“Within the sweetener portfolio, market share expanded by 80 basis points as per MAT December 2025 report of Nielsen and IQVIA.”
What: Gross Margin expansion to 63.3%
“the gross margin jumped because of combination of the business, mainly the Comfort Click business coming in for the whole quarter.”
Earnings deceleration risks from management commentary
Trigger: Divergent pricing trends across categories with milk being the outlier.
Management view: Other key inputs remained largely under control ahead of the upcoming season.
Monitor: commodity
Trigger: Acquisition of UK-based Comfort Click introduces currency translation risks.
Impact: PAT impact: 3% to 4% range
Management view: Refinancing GBP loan into Euro to align with cash flow generation and reduce interest costs.
Monitor: fx
Trigger: Regulatory changes in labor laws requiring provisioning.
Impact: PAT impact: Included in exceptional items
Management view: Treated as a one-time exceptional impact.
Monitor: labor
Key quotes from recent conference calls
“we plan to reframe Complan's participation in the nutrition space with a set of relaunches and new product introductions. [Initiative: Complan Relaunch]”
“The marketplaces will grow, but they're wanting the mix to shift more towards D2C... hopefully, with that business operating between 14% plus kind of EBITDA margins. [Initiative: D2C Expansion for Comfort Click]”
“On the raw material front, except for milk, other key inputs remained largely under control ahead of the upcoming season. [Risk (commodity): MEDIUM]”
“And euro-rupee depreciation or GBP-rupee depreciation is in the range of 3%, 4% on an annualized basis. [Risk (fx): LOW]”
Headline numbers from the latest earnings call
Revenue
₹9,633 million
Why: Growth was primarily driven by the Food & Nutrition segment which grew 134% and the inclusion of the newly acquired Comfort Click business.
Consolidated revenue more than doubled due to the Comfort Click acquisition and strong performance in the Food & Nutrition segment.
EBITDA
₹610 million
Why: EBITDA growth was driven by gross margin expansion across brands and the contribution of the high-margin Comfort Click business.
Margins nearly doubled year-on-year as the business mix shifted toward higher-margin acquired brands.
PAT
₹(399) million
Why: The net loss was caused by high interest costs from the acquisition bridge loan, increased amortization of acquired brands, and one-time exceptional items.
Despite operational growth, the bottom line was hit by acquisition-related financing costs and non-cash amortization charges.
Other Highlights
• Gross margin reached 63.3%, a year-on-year expansion of 1561 bps.
• Comfort Click acquisition remains cash EPS accretive excluding one-time costs.
• Interest expense for the quarter amounted to approximately INR371 million.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Gross Margin %
63.3%
Why: Driven by the inclusion of high-margin Comfort Click business and improved margins in core brands.
Food & Nutrition Segment Growth
134%
Why: Strong performance across brands and acquisition impact.
Personal Care Segment Growth
-1.4%
Why: Impacted by seasonal headwinds in the Nycil brand.
Sugar Free Market Share
96.3%
Why: Continued dominance and 19th consecutive quarter of double-digit growth for Sugar Free Green.
Glucon-D Market Share
59.0%
Why: Maintained leadership despite seasonal headwinds.
Complan Market Share
4.1%
Why: Maintained fourth rank position in the category.
Everyuth Scrub Market Share
48.5%
Why: Maintained dominant number one position.
Everyuth Peel-off Market Share
76.0%
Why: Maintained dominant number one position.
Organized Trade Saliency
30%
Why: Increased focus on modern trade and e-commerce channels.
Direct Reach
0.7 million
Why: Expansion of distribution network.
Forward-looking targets from management for Annual
OPM Guidance
18%
Double-digit
Aspirational EBITDA margins for the base business targeted at 16% to 18% levels.
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +109% | +10% | Stable |
| PAT (Net Profit) | -767% | +4% | Inflection Down |
| OPM | 6.0% | +300 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Zydus Wellness Ltd's latest quarterly results (Dec 2025) show
Zydus Wellness Ltd's profit is declining with an inflecting downward trend.
Zydus Wellness Ltd's revenue growth trend is stable.
Zydus Wellness Ltd's operating margin is expanding.
Zydus Wellness Ltd's long-term compounding rates
Zydus Wellness Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
Zydus Wellness Ltd's trailing twelve month (TTM) performance
Zydus Wellness Ltd appears significantly overvalued based on our fair value analysis.
Zydus Wellness Ltd's current PE ratio is 68.5x.
Zydus Wellness Ltd's current PE is 68.5x.
Zydus Wellness Ltd's price-to-book ratio is 2.9x.
Zydus Wellness Ltd is rated Average with a fundamental score of 44/100. This score is calculated from objective financial metrics
Zydus Wellness Ltd has a debt-to-equity ratio of N/A.
Zydus Wellness Ltd's return ratios over recent years
Zydus Wellness Ltd's operating cash flow is positive (FY2025).
Zydus Wellness Ltd's current dividend yield is 0.23%.
Zydus Wellness Ltd's shareholding pattern (Mar 2026)
Zydus Wellness Ltd's promoter holding has remained stable recently.
Zydus Wellness Ltd has been outperforming Nifty 500 for 7 consecutive weeks, indicating building momentum.
Zydus Wellness Ltd is an established outperformer with 7 weeks of consecutive Nifty 500 outperformance.
Zydus Wellness Ltd has 6 key growth catalysts identified from recent earnings analysis
Zydus Wellness Ltd has 3 key risks worth monitoring
In Q3 FY26, Zydus Wellness Ltd's management highlighted
Zydus Wellness Ltd's management has provided the following forward guidance for Annual
Zydus Wellness Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Zydus Wellness Ltd may be worth studying
Zydus Wellness Ltd investment thesis summary:
Zydus Wellness Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
