Zydus Wellness
Zydus Wellness
Food ProductsKey Fundamentals
SmallcapPackaged FoodsFood ProductsTapetide Score
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Key Insights
Strengths
1- Company is expected to give good quarter
Weaknesses
4- Stock is trading at 2.69 times its book value
- Company has a low return on equity of 5.08% over last 3 years.
- Company might be capitalizing the interest cost
- Dividend payout has been low at 14.1% of profits over last 3 years
Growth Rate
AI Analysis — Bull vs Bear
Zydus Wellness has a market capitalisation of about ₹16,509 crore and trades at 87.8x earnings and 2.84x book value. Revenue growth is strong, with TTM sales up 66% and a 3-year sales CAGR of 21%. Profit has moved the other way, falling 31% on a TTM basis and at a -10% CAGR over 3 years, while ROE has stayed low at 4-6% across every period measured.
- Top-line momentum is sharp: TTM compounded sales growth is 66%, which points to a large step-up in business scale, whether from organic demand, acquisitions or both.
- Revenue has grown steadily over the long run, with sales CAGR of 21% over 3 years, 16% over 5 years and 26% over 10 years.
- The stock's 3-year CAGR of 18% shows that the market has rewarded the recent revenue expansion over the medium term.
- Profit has compounded at 8% a year over 10 years. That suggests the recent profit decline (-10% 3-year CAGR, -31% TTM) may be cyclical or investment-driven rather than structural, though this is not confirmed.
- The company is flagged as expected to post a good quarter. Any profit recovery would start from a low base after the -31% TTM profit decline, which could make percentage improvements look large.
- The stock has delivered an 11% CAGR over 10 years and a 10% return over the past year, showing a long record of positive returns.
- A ₹16,509 crore market cap gives the company scale and liquidity in India's consumer foods and wellness segment, a category that has historically commanded premium multiples.
- Valuation is demanding at a P/E of 87.8x, an earnings yield of roughly 1.1%, while profits are shrinking (-31% TTM).
- Sales and profit are moving in opposite directions: 3-year sales CAGR is +21% but 3-year profit CAGR is -10%. That points to margin compression, higher costs or dilution from acquisitions.
- Return on equity is low and falling: 6% over 10 and 5 years, 5% over 3 years and 4% last year. That is below typical cost-of-equity levels for Indian equities.
- At 2.84x book value with ROE of only about 4-5%, the market is paying a large premium over book for assets that currently earn low returns.
- The company may be capitalising interest cost. If so, reported profit may understate true financing costs, which weighs on earnings quality.
- Shareholder payouts are small: dividend payout has averaged 14.1% of profits over 3 years and the dividend yield is 0.23%.
- Long-term returns have not kept pace with sales: the stock's 5-year CAGR is just 2% against a 5-year sales CAGR of 16%, because profit fell (-2% 5-year CAGR) rather than grew.
- Profit has declined at a 2% CAGR over 5 years, so the weakness in bottom-line growth has lasted several years and is not confined to one period.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Acquisition debt weighs on profit Sep 2
Debt rose to ₹30,711 million after the Comfort Click acquisition, which weighed on FY26 net profit. The higher leverage raises interest costs and makes the integration riskier.
- FY26 revenue jumps 46% Sep 2
At the AGM, Zydus Wellness reported 46% revenue growth to ₹36,610 million for FY26. The Comfort Click acquisition drove much of this growth.
- ESG score rises to 71.7 Sep 3
SES ESG Research raised the company's ESG score to 71.7 from 70 in FY25. The company disclosed it under SEBI Listing Regulations on September 3, 2026.
- CMO Arjit Sengupta resigns Sep 18
Chief Marketing Officer Arjit Sengupta resigned effective September 18, 2026, citing personal reasons that require him to relocate to Mumbai. This is a key role for a consumer brands business, but the exit doesn't appear linked to company performance.
TL;DR: Zydus Wellness is growing fast through acquisitions, with FY26 revenue up 46% to ₹36,610 million, and its ESG score improved slightly to 71.7. The main risk is the balance sheet: debt from the Comfort Click deal has reached ₹30,711 million and is already pulling down net profit. The CMO's exit also leaves a gap in marketing leadership. The outlook depends on whether Comfort Click brings enough profit to pay down debt, so watch quarterly margins and deleveraging progress.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 702 | 440 | 403 | 783 | 841 | 493 | 462 | 913 | 861 | 650 | 965 | 1,485 | 1,437 |
| Expenses | 586 | 423 | 390 | 620 | 686 | 473 | 447 | 723 | 705 | 628 | 904 | 1,215 | 1,195 |
| Operating Profit | 116 | 17 | 13 | 162 | 155 | 20 | 15 | 190 | 156 | 23 | 61 | 270 | 242 |
| OPM % | 17% | 3.8% | 3.1% | 21% | 18% | 4% | 3.2% | 21% | 18% | 3.5% | 6% | 18% | 17% |
| Other Income | -12 | 4 | 3 | 4 | 5 | 10 | 4 | 1 | 3 | -33 | -6 | 1 | 4 |
| Interest | 5 | 6 | 6 | 6 | 4 | 1 | 3 | 4 | 2 | 16 | 41 | 39 | 26 |
| Depreciation | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 13 | 11 | 25 | 56 | 55 | 57 |
| PBT | 93 | 9 | 4 | 154 | 152 | 24 | 10 | 173 | 145 | -51 | -42 | 177 | 162 |
| Tax % | -18% | 31% | 92% | 3% | 3% | 12% | 37% | 1% | 12% | 4% | -4% | 9% | 27% |
| Net Profit | 110 | 6 | 0 | 150 | 148 | 21 | 6 | 172 | 128 | -53 | -40 | 162 | 119 |
| EPS in Rs | 3.47 | 0.19 | 0.01 | 4.72 | 4.64 | 0.66 | 0.2 | 5.4 | 4.02 | -1.66 | -1.25 | 5.09 | 3.74 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 431 | 397 | 431 | 513 | 843 | 1,767 | 1,867 | 2,009 | 2,255 | 2,328 | 2,709 | 3,961 | 4,537 |
| Expenses | 331 | 305 | 331 | 387 | 658 | 1,446 | 1,522 | 1,664 | 1,918 | 2,020 | 2,329 | 3,451 | 3,941 |
| Operating Profit | 100 | 91 | 99 | 125 | 185 | 321 | 344 | 345 | 337 | 308 | 380 | 510 | 596 |
| OPM % | 23% | 23% | 23% | 24% | 22% | 18% | 18% | 17% | 15% | 13% | 14% | 13% | 13% |
| Other Income | 28 | 32 | 32 | 35 | 28 | -33 | -123 | 10 | -5 | 0 | 20 | -34 | -34 |
| Interest | 0 | 0 | 1 | 2 | 30 | 140 | 84 | 26 | 16 | 24 | 12 | 98 | 122 |
| Depreciation | 8 | 7 | 7 | 9 | 13 | 26 | 25 | 24 | 25 | 24 | 28 | 147 | 193 |
| PBT | 120 | 117 | 124 | 150 | 171 | 121 | 112 | 306 | 291 | 260 | 359 | 230 | 247 |
| Tax % | 7% | 10% | 10% | 9% | 0% | -17% | -6% | -1% | -7% | -3% | 3% | 14% | — |
| Net Profit | 111 | 105 | 111 | 137 | 171 | 142 | 119 | 309 | 310 | 267 | 347 | 197 | 188 |
| EPS in Rs | 5.58 | 5.28 | 5.58 | 6.85 | 5.87 | 4.92 | 3.73 | 9.71 | 9.75 | 8.39 | 10.9 | 6.2 | 5.92 |
| Div. Payout % | 22% | 25% | 23% | 23% | 17% | 20% | 27% | 10% | 10% | 12% | 11% | 19% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 39 | 39 | 39 | 39 | 58 | 58 | 64 | 64 | 64 | 64 | 64 | 64 |
| Reserves | 367 | 439 | 518 | 652 | 3,329 | 3,403 | 4,504 | 4,780 | 5,059 | 5,294 | 5,608 | 5,762 |
| Borrowings | 0 | 0 | 25 | 25 | 1,569 | 1,519 | 550 | 387 | 297 | 329 | 188 | 3,203 |
| Other Liabilities | 102 | 89 | 100 | 112 | 503 | 610 | 548 | 461 | 413 | 462 | 582 | 1,161 |
| Total Liabilities | 508 | 568 | 682 | 829 | 5,459 | 5,590 | 5,666 | 5,692 | 5,833 | 6,148 | 6,442 | 10,190 |
| Fixed Assets | 84 | 82 | 103 | 104 | 4,567 | 4,674 | 4,667 | 4,710 | 4,732 | 4,708 | 5,125 | 8,596 |
| CWIP | 0 | 0 | 0 | 0 | 10 | 4 | 4 | 12 | 13 | 10 | 15 | 23 |
| Investments | 0 | 94 | 30 | 148 | 46 | 110 | 0 | 27 | 70 | 78 | 36 | 5 |
| Other Assets | 423 | 391 | 550 | 577 | 835 | 802 | 995 | 943 | 1,018 | 1,354 | 1,266 | 1,566 |
| Total Assets | 508 | 568 | 682 | 829 | 5,459 | 5,590 | 5,666 | 5,692 | 5,833 | 6,148 | 6,442 | 10,190 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 69 | 90 | 77 | 69 | 149 | 259 | 287 | 237 | 92 | 246 | 380 | 226 |
| Investing | 29 | -28 | -72 | -59 | -4,092 | -17 | -10 | -59 | -85 | -178 | -207 | -2,881 |
| Financing | -27 | -58 | -6 | -2 | 4,052 | -260 | -216 | -234 | -138 | -26 | -186 | 2,698 |
| Net Cash Flow | 71 | 4 | -1 | 8 | 109 | -18 | 60 | -56 | -132 | 43 | -13 | 44 |
| Free Cash Flow | 72 | 86 | 46 | 61 | 132 | 235 | 269 | 162 | 47 | 220 | 315 | 126 |
| CFO/OP | 80 | 114 | 86 | 64 | 115 | 81 | 83 | 70 | 28 | 81 | 99 | 50 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 1 | 3 | 3 | 6 | 42 | 24 | 18 | 26 | 34 | 44 | 49 | 35 |
| Inventory Days | 76 | 73 | 127 | 113 | 393 | 168 | 158 | 135 | 146 | 150 | 148 | 178 |
| Days Payable | 146 | 191 | 264 | 254 | 662 | 289 | 189 | 136 | 100 | 116 | 122 | 107 |
| Cash Conversion Cycle | -69 | -116 | -134 | -135 | -227 | -97 | -13 | 25 | 80 | 78 | 75 | 106 |
| Working Capital Days | -37 | -38 | -57 | -26 | -26 | -7 | -35 | -27 | 17 | 20 | 34 | 48 |
| ROCE % | 32% | 26% | 23% | 22% | 7% | 6% | 6% | 6% | 6% | 5% | 6% | 5% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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74 extracted metrics + investor summaries across FY09–FY27.
Documents
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Company Information
Zydus Wellness operates as an integrated consumer Company with business encompassing the entire value chain in the development, production, marketing and distribution of health and wellness products. The product portfolio of the Company includes brands like Sugar free, Everyuth and Nutralite.(Source : 202003 Annual Report Page No: 83)
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