Zydus Wellness Q1 FY26: Revenue ₹861cr, PAT ₹128cr

Earnings date on the calendar

Zydus Wellness Ltd.’s upcoming earnings date is scheduled for 3 February 2026. The update comes after the company’s latest disclosed quarterly numbers highlighted a familiar pattern for the business: strong summer-led categories can lift performance, while shorter seasons and adverse weather can pressure quarterly sales and profitability.

In Q1 FY26, the company reported relatively steady topline growth year-on-year, but profitability declined compared with last year and the immediately preceding quarter. Investors tracking packaged foods, nutrition, and personal care businesses will likely focus on volume trends, gross margin movement, and the pace of integration benefits from recent acquisitions.

Q1 FY26 headline performance

For Q1 FY26, Zydus Wellness reported consolidated revenue of ₹861 crore, up 2.4% year-on-year (YoY) from ₹841 crore in Q1 FY25. However, revenue fell 5.7% quarter-on-quarter (QoQ), with the company citing shorter summers and adverse weather.

Profitability weakened despite stable operating profitability. Net profit (PAT) stood at ₹128 crore, down 13.51% YoY from ₹148 crore and down 14.9% QoQ. EBITDA was ₹156 crore, up 0.2% YoY, but the EBITDA margin slipped to 18.1% from 18.5% a year ago, a decline of 39 basis points.

Per-share profitability also moderated. EPS was ₹20.10, lower than ₹23.20 in Q1 FY25 and ₹23.60 in Q4 FY25.

Margins and cost indicators

Zydus Wellness reported a gross margin of 55% in Q1 FY26, down 66 basis points YoY, while improving slightly sequentially as input cost pressure began to ease. Even with gross margin stabilising, the quarter saw a sharper decline in PAT and PAT margin.

The company reported PAT margin of 14.9%, down 271 basis points YoY, and attributed the impact largely to non-cash items, including deferred tax and amortisation related to acquisition.

Channel mix: organised trade gains share

A notable operational datapoint in Q1 FY26 was the improvement in organised trade saliency to 30.9%, up from 23.3% YoY. The company’s disclosure split this into e-commerce at 14.5% and modern trade at 16.4%.

The mix shift matters because e-commerce and modern trade often come with different promotion intensity and pricing architecture versus general trade. The quarter also reflected contributions from the Naturell (Max Protein) acquisition, which supported growth in nutrition bars and snacks.

Segment update: Food & Nutrition and Personal Care

By segment, the company reported steady growth in both major divisions in Q1 FY26. The Food & Nutrition segment grew 1.6% YoY, while Personal Care grew 3.8% YoY.

The segment split suggests resilience in the portfolio even as seasonality affected the topline sequentially. The company’s narrative in earlier quarters has emphasised marketing initiatives and channel expansion for key brands.

Q4 FY25 provided the stronger base

For Q4 FY25, Zydus Wellness reported a sharp rebound led by volumes and broader-based segment growth. Revenue was reported at ₹913 crore (₹913.1 crore from ₹9,131 million), up 16.7% YoY and 97.7% QoQ, supported by 13% volume growth, particularly from smaller pack sizes.

Net profit (PAT) in Q4 FY25 was ₹171.9 crore, up 14.4% YoY, with PAT margin at 18.8%. EBITDA stood at ₹190 crore, up 17% YoY, and EBITDA margin was 20.8%. Gross margin was 54.9%.

The company also disclosed Q4 FY25 cost lines: total expenses were ₹740.5 crore, higher than ₹632.2 crore in the corresponding quarter last year.

Key numbers at a glance

FY25 full-year snapshot and dividend

For FY25, Zydus Wellness reported consolidated net profit of ₹346.9 crore, compared with ₹266.9 crore in FY24. FY25 consolidated total revenue from operations stood at ₹2,708.9 crore, versus ₹2,327.8 crore in FY24.

The company’s board recommended a final dividend of ₹6 per equity share (face value ₹10), subject to shareholder approval at the AGM scheduled for 30 July 2025.

Market impact: what the numbers indicate

The disclosed results show a clear contrast between quarters. Q4 FY25 delivered high growth and stronger operating margins, while Q1 FY26 reflected seasonality and weather-linked demand disruption in summer-heavy categories, resulting in a sequential revenue decline.

From an investor lens, the Q1 FY26 print indicates that while revenue held up YoY, profit was more sensitive to margin movement and non-cash charges. The improvement in organised trade saliency to 30.9% is a tangible distribution datapoint, and the contribution from Naturell (Max Protein) highlights the role of acquisitions in supporting category expansion.

Analysis: seasonality, mix, and acquisition effects

Q1 FY26 underscores the operational reality that Zydus Wellness’ portfolio includes products with seasonal demand patterns. The company explicitly linked the QoQ revenue decline to shorter summers and adverse weather, suggesting that near-term performance can be influenced by factors beyond pricing and distribution.

At the same time, the quarter’s weaker PAT despite near-flat EBITDA growth points to the importance of below-EBITDA items. The company stated that PAT margin was impacted by deferred tax and amortisation from acquisition, which are particularly relevant as recent deals, including Naturell (Max Protein), get absorbed into reported financials.

What to watch ahead of the 3 Feb 2026 earnings

With the next earnings date set for 3 February 2026, attention is likely to remain on (1) demand recovery after a weather-affected quarter, (2) whether gross margin stability sustains as input costs ease, and (3) whether channel mix gains in e-commerce and modern trade translate into more consistent execution.

Any further commentary on integration progress for acquired brands and the performance of core franchises such as Glucon-D, Sugar-Free, Nycil, and Everyuth will also be closely tracked, given their category leadership references in the company’s disclosures.

Conclusion

Zydus Wellness reported Q1 FY26 revenue of ₹861 crore with modest YoY growth, but PAT fell to ₹128 crore and margins softened versus last year and the preceding quarter. The next key checkpoint is the 3 February 2026 earnings update, following a FY25 year that ended with higher full-year revenue, profit, and a proposed ₹6 final dividend awaiting shareholder approval.