Zydus Wellness Q1 FY27: Growth, margins and the summer disruption

Net sales were INR 14,299 million in Q1 FY27, up 66.7 percent year on year, as per the financial highlights table.

Domestic revenue grew 4.6 percent year on year, while international revenue grew 24.8 percent year on year on a like-to-like basis (including Comfort Click business), as stated in the presentation and concall.

The presentation shows domestic at 69 percent and international at 31 percent for Q1 FY27.

PAT declined 7.0 percent year on year, which management attributed to higher amortization of acquired brands and finance cost impacts; adjusted net profit (adding back acquired brand amortization) grew 26.5 percent.

Gross contribution was 65.5 percent of net sales in Q1 FY27 versus 54.8 percent in Q1 FY26. The company attributed the improvement to strong core business margin expansion and higher margin Comfort Click business.

CFO stated effective tax rate would be around 25 percent (including deferred tax), with 12 to 15 percent being the cash tax component in FY27, and likely around 25 percent cash from FY28.

Organised channel saliency was 38 percent in Q1 FY27, comprising modern trade 17 percent and e-commerce 21 percent, based on internal MIS shared in the presentation.