Zydus Wellness Ltd
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Zydus Wellness Q2 FY27 Results Analysis: PAT Swings to Profit, Revenue Jumps 73% (ZYDUSWELL)

Cofacto Research Published November 03, 2026 4 min read
Neutral

Zydus Wellness Ltd's Q2 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateNovember 03, 2026
Revenue (Q2)Rs. 1,126.60 Cr (+73.19% YoY)
PAT (Q2)Rs. 5.10 Cr
EBITDA margin7.59% (+405 bps YoY)
EPS (Q2)Rs. 0.16

Quarter Snapshot

Consolidated revenue grew 73.19% YoY to Rs.1,126.6 crore and PAT swung from a Rs.52.8 crore loss to Rs.5.1 crore profit, but growth is acquisition-aided and the standalone core grew only 6.92% with PBT down 40.57%. Cash generation is the standout: H1 FCF of Rs.267.1 crore cut net debt by Rs.180.8 crore while funding interest and dividends. No quarterly-testable guidance exists to benchmark against; the base-business 17-18% EBITDA margin path must be demonstrated in the seasonally strong H2 quarters.

Q2 FY27 Expectations vs Results

DriverExpected before resultsWhat happenedVerdict
Headline revenueAhead YoY, acquisition-aided+73.19% YoYPlayed out
Domestic/seasonal detailIn-line to behindNot disclosed this quarterNot observable
EBITDA marginCompressing sequentially into weak quarter16.83% → 7.59%Played out
Gross margin vs 66–67% guideAt risk from milk61.41% derived (seasonal quarter; causation not established)Partially
Fixed-cost drag in Sept quarterTo show in EBITDARs.84.3 crore finance+D&A vs Rs.85.5 crore EBITDAPlayed out
Adjusted profitability cleaner lensYes~Rs.45.1 crore approx vs reported Rs.5.1 crore — approximatePlayed out
Debt paydownWatchGross debt −Rs.34.1 crore only; net debt −Rs.180.8 crorePartially
FSSAI / segment disclosureWatchNo update / not debutedNot observable / Contradicted this quarter

Read our full results preview.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
Base-business EBITDA margin 17–18%Q2 FY26 & Q4 FY26 earnings calls, reaffirmed Q1 FY27Not derivable — no base/Comfort Click split; consolidated margin 7.59% (Q2), 12.76% (H1)Too Early
Consolidated gross margin ~66–67% annualized ex-seasonalityQ1 FY27 earnings callDerived GC margin 61.41% of net sales (Q2, seasonal quarter; guide is annualized)Too Early
Double-digit growth over 3–4 yearsQ4 FY26 earnings callH1 revenue +69.62% YoY (acquisition-aided); last disclosed domestic +4.6% (Q1)Too Early
Domestic/International segment disclosure by year-endPrior concall commitmentFiling still reports one segment — window openToo Early
"Anticipates positive growth momentum for the remainder of the financial year" (seasonal brands)Q1 FY27 earnings callNo product-level revenue disclosed in Q2 filingToo Early
Business becoming less summer-dependent via international/D2CPrior concall commentaryConsol Q2 margin 7.59% still sharply seasonal, though up +405 bps YoY — directionPartially Confirmed
Comfort Click operates on a variable spend model; leverage to come from coreQ1 FY27 earnings callEmployee costs at 7.88% of sales vs 10.21% YoYConfirmed by proxy
Fixed acquisition costs (interest + depreciation, ~Rs.80–85 crore/quarter per analyst computation, management-confirmed Sept/Dec EBITDA impact)Prior concall Q&AComputed: finance Rs.27.2 + D&A Rs.57.1 = Rs.84.3 crore vs EBITDA Rs.85.5 croreConfirmed

Key Investment Insights

Key Positives

  • Consolidated revenue from operations grew 73.19% YoY to Rs.1,126.6 crore (acquisition-aided base)
  • Consolidated PAT swung from a Rs.52.8 crore loss in Q2 FY26 to a Rs.5.1 crore profit in Q2 FY27
  • EBITDA grew 271.74% YoY to Rs.85.5 crore with margin up 405 bps YoY to 7.59%
  • H1 CFO of Rs.312.1 crore was 2.52x PAT; FCF of Rs.267.1 crore funded interest, dividend and Rs.331.0 crore of debt repayment
  • Net debt reduced Rs.180.8 crore in H1 to Rs.2,890.3 crore
  • Employee costs fell to 7.88% of sales from 10.21% YoY, consistent with the Comfort Click variable-spend model
  • Standalone PAT rose 52.63% YoY to Rs.11.6 crore

Risk Factors

  • Standalone (core India) revenue grew only 6.92% YoY while standalone pre-exceptional PBT fell 40.57% and EBITDA fell 39.15%
  • Subsidiaries in aggregate dragged consolidated PAT Rs.6.5 crore below standalone PAT due to acquisition amortization and interest
  • Acquisition fixed costs (finance Rs.27.2 crore + D&A Rs.57.1 crore = Rs.84.3 crore) nearly equalled the quarter's entire EBITDA of Rs.85.5 crore
  • Goodwill plus intangibles of Rs.8,173.2 crore equal ~7.3x quarterly revenue with net debt of Rs.2,890.3 crore
  • Consolidated EBITDA margin fell 64.63% QoQ from Q1's Rs.241.7 crore, though the filing attributes this to seasonality
  • FSSAI Complan claims review outcome remains undisclosed beyond the October 23, 2026 clarification of no material impact
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

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