Zydus Wellness reported a robust financial performance for Q1 FY27, with Net Sales increasing by 66.7% to ₹14,299 million and Revenue from Operations growing by 66.9% to ₹14,370 million. Gross Contribution saw a significant jump of 99.5%, reaching ₹9,436 million. EBITDA increased by 55.3% to ₹2,417 million, with EBITDA margin at 16.8%. Adjusted Net Profit rose by 26.5% to ₹1,679 million.
Zydus Wellness Reports Strong Q1 FY27 Financial Performance
Zydus Wellness has announced impressive financial results for the first quarter of the financial year 2027 (Q1 FY27), showcasing significant growth across key performance indicators. The company reported a substantial increase in Net Sales, which grew by 66.7% year-on-year to reach ₹14,299 million. Revenue from operations also demonstrated strong momentum, increasing by 66.9% to ₹14,370 million.
Key Financial Highlights:
Gross Contribution and EBITDA Growth
The company’s Gross Contribution witnessed a remarkable surge of 99.5%, amounting to ₹9,436 million, with Gross Margin expanding by 1071 bps to 65.5% of net sales. This expansion was attributed to improved margins in the core business and the higher margin from the Comfort Click business. EBITDA for the quarter grew by 55.3% to ₹2,417 million, though the EBITDA margin saw a slight decrease to 16.8% from 18.1% in the previous year.
Profitability and Earnings Per Share
Profit Before Tax (PBT) increased by 11.6% to ₹1,621 million. Profit After Tax (PAT) stood at ₹1,189 million, marking a decrease of 7.0% compared to Q1 FY26, partly due to higher amortization of acquired brands. The Adjusted Net Profit, which factors in amortization of acquired brands, saw a healthy growth of 26.5% to ₹1,679 million. Consequently, Adjusted EPS rose to 5.28 from 4.17 in the prior year.
Factors Influencing Performance
The robust improvement in EBITDA percentage for the core business, coupled with the Comfort Click business’s performance, contributed to the overall EBITDA expansion on a like-to-like basis. Major impacts influencing the PBT included interest expenses on a Euro-denominated loan for the Comfort Click acquisition and higher depreciation and amortization expenses related to acquired brands. The Comfort Click acquisition has been noted as EPS accretive.
Source: BSE
