Zydus Wellness Q1 FY27: Revenue Jumps 66.7% as Premiumisation, Digital Commerce and Innovation Drive Growth
Zydus Wellness Limited reported a strong performance for the first quarter of FY2027, supported by resilient consumer demand, premiumisation, digital commerce and continued innovation across its portfolio.
The company’s Q1 FY27 earnings conference call was held on August 4, 2026, with CEO Tarun Arora, CFO Umesh Parikh and Non-Executive Director Ganesh Nayak discussing the company’s performance and outlook.
For the quarter, consolidated net sales increased 66.7% year-on-year to ₹1,429.9 crore, while EBITDA rose 55.3% to ₹241.7 crore.
However, net profit declined during the quarter, mainly reflecting the impact of amortisation of acquired brands. Excluding this amortisation, net profit grew 26.5% year-on-year.
Q1 FY27 Financial Performance
Zydus Wellness delivered significant revenue growth during the June 2026 quarter.
| Financial Metric | Q1 FY27 |
|---|---|
| Consolidated Net Sales | ₹1,429.9 crore |
| YoY Sales Growth | 66.7% |
| EBITDA | ₹241.7 crore |
| YoY EBITDA Growth | 55.3% |
| Net Profit | Declined YoY |
| Net Profit excluding acquired-brand amortisation | +26.5% YoY |
The company said gross margin expansion in its core business remained strong during the quarter. This was further supported by the higher-margin Comfort Click business.
On a like-for-like basis, the overall EBITDA margin expanded by approximately 0.4 percentage point.
Comfort Click also continued to be EPS accretive.
Domestic Business Grows 4.6%
Zydus Wellness’ domestic business recorded 4.6% growth during Q1 FY27.
Within the domestic portfolio, Skin and Hair Care and Food & Nutrition remained key growth drivers.
Skin and Hair Care grew 34.5%, while Food & Nutrition increased 16% during the quarter.
The seasonal portfolio, however, declined 12%, largely because of an unusual summer season and frequent rainfall in important markets.
Management said that excluding the summer portfolio, the company’s key brands continued to deliver strong double-digit growth.
This diversification is helping Zydus Wellness reduce its dependence on weather-sensitive summer brands and create a more balanced business throughout the year.
International Business Delivers 24.8% Like-for-Like Growth
The company’s international business, including the Comfort Click business, delivered 24.8% like-for-like growth during the quarter.
During the earnings call, management clarified that the international business did not face any specific stock availability or supply-chain constraints during Q1.
The company reiterated that it continues to target double-digit growth, although management does not provide specific forward-looking growth guidance.
Organized Channels Become Increasingly Important
Zydus Wellness continued to benefit from the rapid growth of modern trade, e-commerce and quick commerce.
The company’s organized-channel saliency reached an industry-leading 38% in Q1 FY27.
This included:
- Modern trade: 17%
- Digital commerce: approximately 21%
Management highlighted quick commerce and e-commerce as major growth engines, with both channels continuing to record strong double-digit growth and gain share across categories.
Premiumisation Supports Consumer Demand
According to CEO Tarun Arora, consumer demand remained resilient during the quarter, with consumers increasingly shifting towards higher-value products.
The premiumisation trend continued across categories such as:
- Personal care
- Beauty
- Packaged foods
- Nutrition
- Health and wellness
The company has been using premium offerings and improved product mix to manage commodity and currency-related cost pressures.
Management said input-cost trends remained largely manageable despite divergent movements in commodities and foreign exchange.
Nycil and Glucon-D Impacted by Unseasonal Rainfall
The biggest challenge during Q1 came from the company’s seasonal portfolio.
Seasonal brands declined 12%, primarily because frequent rainfall affected summer consumption.
Nycil was particularly impacted.
North and East India are important markets for Nycil, but unseasonal rainfall in these regions reduced demand. The brand also faced cautious channel stocking and higher retailer inventory.
Glucon-D experienced a relatively flattish quarter.
While West, South and North markets showed positive momentum, weakness in the East, where rainfall continued through April and May, offset the gains.
Management said that the second half of the quarter showed a recovery in growth rates for both brands. The company is also seeing growth momentum returning as it moves through the current financial year.
Complan Continues to Gain Momentum
Complan continued to perform well despite weakness in the broader category.
Management said Complan has delivered good growth for the past two quarters by combining several initiatives.
The strategy includes:
- Strengthening the core kids’ nutrition business
- Better nutrition propositions
- Higher-quality advertising
- Distribution expansion
- Celebrity-led brand building
- Expansion into specialised nutrition
- New product formats
Complan has also expanded beyond its traditional positioning through products such as Complan NutriGro, VieMax, VieMax Diabetes Care and the new Complan Power Play ready-to-drink milkshake.
The company believes the combination of brand building, portfolio expansion and wider distribution is helping Complan gain consumer acceptance even while the overall category remains under pressure.
Complan Power Play Enters Ready-to-Drink Nutrition
One of the key innovations launched during the quarter was Complan Power Play, which extends the Complan franchise into the ready-to-drink nutrition beverage segment.
The product is targeted at active kids and combines nutrition with convenience.
It is available in vanilla and chocolate flavours and contains:
- No added sugar
- No preservatives
The launch gives Complan access to a new consumption format while strengthening the brand’s presence in the children’s nutrition market.
VieMax Diabetes Care Expands Health and Wellness Portfolio
Zydus Wellness also launched VieMax Diabetes Care, a nutrition solution designed to support diabetes management.
The product features a:
- Low glycemic index
- High-protein formulation
- High-fibre formulation
The company said the product is designed to support blood-sugar management, satiety, strength and gut wellness.
This launch reflects the company’s broader strategy of expanding into science-led health and wellness propositions.
Everyuth Gains Market Share
Everyuth delivered strong double-digit growth during the quarter.
The company’s tan-removal franchise continued to outperform internal expectations, while digital-first consumer engagement helped expand the brand’s user base.
Everyuth also improved its ranking in the overall facial cleansing category from fifth to fourth, according to management.
The company continues to see significant opportunities within facial cleansing, including:
- Scrubs
- Peel-off products
- Face washes
- Tan-removal products
- Anti-pollution propositions
Management said its immediate priority remains growing Everyuth within facial cleansing before aggressively expanding into other skincare categories.
Sugar Free Maintains Category Leadership
The Sugar Free portfolio also continued to perform well.
Sugar Free maintained its category leadership, with the core portfolio delivering double-digit growth and significantly outperforming category trends.
Sugar Free D’lite continued its strong momentum with high double-digit growth.
The company also said I’m lite strengthened its healthier-living proposition and delivered higher double-digit year-on-year growth.
RiteBite Max Protein Remains a Major Growth Driver
The RiteBite Max Protein business continued its strong growth trajectory.
Management identified three key drivers:
- Brand building
- Distribution expansion
- Portfolio expansion
The company is investing more heavily in brand building and expanding distribution across offline channels.
Management said the business is seeing good traction in the next two tiers of towns, although it remains selective about rural expansion because Max Protein products are positioned at relatively higher price points.
Quick commerce also remains an important growth channel.
New Products Expand the Max Protein Portfolio
Zydus Wellness is expanding the Max Protein portfolio beyond its traditional products.
Recent launches include:
- New protein bars
- Millet-based wafer bars
- Roots, a product based on ghee, jaggery and dates
- Korean-flavoured chips
- Ready-to-drink products
- Expanded Max Protein cookies
Management said the existing core products continue to drive growth, while the expanded portfolio is helping the company reach new consumer segments.
Comfort Click Expands Internationally
Comfort Click continued to deliver strong double-digit growth and remained EPS accretive for Zydus Wellness.
The company is expanding its international presence through several initiatives.
These include:
- Launching the WeightWorld D2C platform in the U.S.
- Expanding into the Walmart marketplace
- Launching WeightWorld and Maxmedix on noon UAE
- Establishing a physical base in the UAE
- Expanding its Middle East presence
Management said the U.S. business remains very small currently but is growing well and performing in line with expectations.
The company does not currently break out growth separately for the UK and other European markets. Management said the major European markets include the UK, France, Italy, Germany and Spain.
Comfort Click Remains EPS Accretive
A key investor concern was whether Comfort Click could remain profitable despite the seasonal nature of some of Zydus Wellness’ domestic products and the additional fixed costs associated with the business.
CFO Umesh Parikh said Comfort Click became EPS accretive from Q4 FY26 and continued to remain so in Q1 FY27.
Management expects that, if the current momentum continues, the business can contribute to improvements in EBITDA, profit before tax and net margins.
GLP-1 Trend Could Create Opportunities
During the earnings call, analysts also asked about the potential impact of the growing global adoption of GLP-1-related treatments and the opportunity for nutrition and wellness products.
Management clarified that the Comfort Click portfolio is largely a digital-only, B2C business, with products sold on an OTC basis rather than through doctor prescriptions.
The company sees potential demand opportunities from broader health and wellness trends, although management did not provide specific projections regarding the potential financial impact of GLP-1 adoption.
Advertising and Digital Spending
Advertising and promotion remained an important part of Zydus Wellness’ growth strategy.
For Q1 FY27, advertising and promotion expenditure stood at 18.2% of total reported sales.
This figure includes Comfort Click, which has a significantly higher advertising-spend ratio.
On a like-for-like basis, A&P spending for the core business was broadly similar to the previous year.
Management also highlighted a continuing shift in advertising investment towards digital platforms as consumers increasingly spend time consuming digital media.
Interest Cost Benefits From Loan Refinance
Zydus Wellness also benefited from lower interest costs during the quarter.
According to CFO Umesh Parikh, the company transitioned from a GBP loan to a euro loan at a significantly lower interest rate, resulting in savings in finance costs.
Going forward, the effective interest cost is expected to remain broadly around current levels, subject to movements in the relevant euro benchmark rate.
Tax Rate Outlook
The effective tax rate for Q1 FY27 was approximately 27%.
Management explained that this was partly due to disallowances related to the thin-capitalisation rule in the UK.
Excluding this impact, the effective tax rate would have been around 25%.
For FY27, the company expects the effective tax rate to be around 25%, although the cash tax component is expected to be lower.
From the following financial year, management expects the tax rate to be approximately 25% entirely in cash, subject to the applicable circumstances.
Strong Innovation Pipeline Ahead
Zydus Wellness said its product pipeline remains robust.
The company has launched multiple products across Complan, Sugar Free, Max Protein, Glucon-D and Nutralite over the past three to four quarters.
Management said the immediate focus is to scale up these recently launched products rather than simply increase the number of new launches.
The company expects to continue introducing additional products over the coming quarters, while its longer-term innovation pipeline is described as robust for the next two to three years.
Management’s Growth Strategy
Zydus Wellness’ long-term strategy is centred around building a premium, diversified and future-ready consumer portfolio.
The company intends to leverage technology and analytics across:
- Product innovation
- Consumer engagement
- Brand investments
- Distribution
- Execution
- Investment effectiveness
The broader objective is to anticipate changing consumer preferences, improve organisational agility and create a more resilient platform for sustainable and profitable growth.
Zydus Wellness delivered strong top-line growth in Q1 FY27, although the quarter was affected by weakness in weather-sensitive seasonal brands, particularly Nycil.
The company’s diversified portfolio is increasingly helping offset this volatility. Strong performances from Everyuth, Skin and Hair Care, Food & Nutrition, Sugar Free and RiteBite Max Protein, together with continued expansion of Comfort Click, provide multiple growth engines.
The increasing contribution from digital commerce, quick commerce, premium products and science-led nutrition also supports the company’s long-term strategy.
For investors, the key areas to monitor in the coming quarters will be the recovery of the seasonal portfolio, the sustainability of Max Protein and Everyuth growth, Comfort Click’s profitability, international expansion and the company’s ability to convert its extensive innovation pipeline into meaningful revenue and margin growth.
This article is based on the Q1 FY27 earnings conference call transcript of Zydus Wellness Limited held on August 4, 2026. It is intended for informational purposes only and should not be considered investment advice.