1. At a Glance
If FMCG was a college, Zydus Wellness would be that health-conscious nerd who aces nutrition class but somehow keeps borrowing lunch money. At a market cap of ₹14,731 crore and a current price of ₹463 (as of Nov 4, 2025), the company looks toned on the outside, but the financial BMI says “slightly bloated.”
The last quarter (Q2 FY26) was a mixed gym session — revenues flexed 31% YoY to ₹6,429 million (₹643 crore), thanks to new protein bars and glucose drinks pumping up sales. But profit after tax stumbled toa loss of ₹52.8 crore, a 257% dive from the same quarter last year. Ouch. Operating profit margin? Down to 4% — about as thin as sugar-free syrup.
Still, the stock has run 19.8% in three months, 34.3% in six, because apparently, the market enjoys a bit of drama with its protein shakes. ROE is 6.02%, P/E a hefty 52.3x — the valuation equivalent of paying premium gym fees for a yoga mat.
So, what’s cooking? Acquisitions galore — ₹3,900 crore for Naturell India (makers of RiteBite Max Protein) and a £239 million deal for UK-based Comfort Click. Add to that a ₹56.33 crore GST demand (courtesy DGGI Surat), and the quarter was basically Zydus’ version of a Bollywood fitness montage — sweat, shocks, and a happy ending in sight.
2. Introduction
Zydus Wellness Limited isn’t just selling health — it’s selling aspiration. This is the company behind every middle-class Indian who wants to feel guilt-free while eating mithai made withSugar-Free Gold, who putsEveryuth peel-off maskbefore a Zoom call, and who’s probably chuggingGlucon-Dafter two flights of stairs.
Born from the DNA of pharma giant Zydus Lifesciences, the company’s journey has been like a diet plan — occasional bursts of progress followed by cheat days (read: debt, acquisitions, and tax issues). The wellness empire spans categories fromnutrition (Complan, Glucon-D, Sugar-Free)topersonal care (Everyuth, Nycil)tospreads (Nutralite). Basically, it’s a mini-Unilever but with more vitamins and fewer colas.
However, FY26 began with a bang — literally buying health at scale. TheNaturell India acquisition (₹3,900 crore)in October 2024 brought them Max Protein bars, cookies, and chips. Then cameComfort Click UK (GBP 239 million)in August 2025, adding vitamins and minerals from Europe to Zydus’s pantry.
But here’s the twist — all this wellness expansion was funded fully bycash and debt, leading to borrowings ballooning to ₹3,042 crore as of Sep 2025. The once “asset-light” FMCG model now carries more load than a bodybuilder’s protein bag.
And yet, Zydus Wellness soldiers on — with 93.9% market share in sugar substitutes, 59.4% in glucose powder, and 46% in face scrubs. When it comes to dominating small corners of big markets, this company’s got six-pack abs.
3. Business Model – WTF Do They Even Do?
Imagine a company whereSugar-Free, Everyuth, Complan, Glucon-D, Nycil, and Nutraliteall share the same fridge. That’s Zydus Wellness.
Their game plan is simple:make you feel good and look good, sometimes in the same breath.
Segment 1 – Food & Nutrition:Home toComplan(for kids and adults),Glucon-D(for heatstroke survivors),Sugar-Free(for diabetic uncles), andNutralite(for cholesterol warriors). Basically, everything your mom nags you to eat.
Segment 2 – Personal Care:UnderEveryuth(scrubs, face masks, cleansers) andNycil(prickly heat powder) — the brand portfolio that makes summers survivable and teenagers tolerable.
New Toys – Naturell & Comfort Click:
The newly acquiredNaturell Indiabrings health bars and protein snacks under RiteBite Max Protein. Meanwhile,Comfort Click (UK)adds vitamins, minerals, and supplements (VMS) — a market Zydus now enters like a gym bro entering GNC.
E-commerce now forms12.5% of total sales, up from 4% in FY21 — a strong sign of modern retail muscle.
Theirdistribution networkspans 1,700+ distributors and ~2,000 on-ground reps backed by 24 warehouses. If FMCG distribution were a marathon, Zydus just booked the hydration station.
4. Financials Overview
Let’s look at the numbers where “healthy lifestyle” meets “financial cholesterol.”
| Metric (₹ Cr) | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 650 | 493 | 861 | +31.9% | -24.5% |
| EBITDA | 23 | 20 | 156 | +15.0% | -85.3% |
| PAT | -52.8 | 21 | 128 | -357% | -141% |
| EPS (₹) | -1.66 | 0.66 | 4.02 | -352% | -141% |
Commentary:If Q2FY26 was a body, revenue hit the treadmill hard, but profits fainted mid-sprint. Despite the 32% jump in sales, profits plunged due to integration costs, acquisition expenses, and, well, corporate cardio.
The annualised EPS (negative) makes the P/E “not meaningful.” Zydus’ balance sheet currently resembles a protein bar label — packed with ingredients, but high on sugar (debt).
5. Valuation Discussion – Fair Value Range Only
Method 1: P/E Based ValuationTTM EPS = ₹7.96Industry P/E = 52.2→ Fair Value = 7.96 × (40 to 55) =₹318 – ₹438 per share
Method 2: EV/EBITDAEV/EBITDA = 45x (current)Industry Average ≈ 30xIf normalized EV/EBITDA = 30xFair Value = Current EV × (30 / 45) ≈ ₹17,651 Cr × (0.67) =₹11,825 Cr → ₹372/share
Method 3: Simplified DCF (Education Purpose)Assume 10% CAGR in cash flows for 5 years and terminal growth 4%.Discount Rate = 10%.Fair Value Range ≈₹380 – ₹460 per share
Fair Value Range: ₹370 – ₹450/share
⚠️This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
The last few months for Zydus Wellness were like a Bollywood fitness montage: protein bars, UK takeovers, and government tax drama.
