Zydus Wellness Reports 13.4% Drop In Net Profit For The First Quarter

Mumbai: Zydus Wellness Limited on Wednesday reported a 13.4 per cent drop in its consolidated net profit for the first quarter ended June 30 (Q1 FY26), as some of its seasonal brands were hit by a shorter summer, unseasonal rains, and higher expenses.

The company posted a net profit of Rs 127.9 crore, down from Rs 147.7 crore in the same quarter previous year (Q1 FY25), according to its stock exchange filing.Revenue from operations rose slightly to Rs 860.9 crore from Rs 841 crore in the year-ago period, the company added in its regulatory filing.

Total expenses during the quarter increased to Rs 718.6 crore, compared to Rs 694.4 crore in the same period previous year, according to its filing.The company also spent more on advertising and promotions, with expenses rising to Rs 132.5 crore from Rs 124.3 crore a year earlier.Total expenses include the cost of materials consumed at Rs 267.2 crore, employee benefits expense at Rs 68.2 crore, and depreciation and amortisation expense at Rs 10.8 crore.

Zydus Wellness, which owns popular brands like Glucon-D, Nutralite, Complan, Sugar Free, Nycil, and Everyuth Naturals, said most of its brands achieved gross margin growth, showing the strength of its portfolio.However, the contribution of seasonal brands was temporarily affected by unusual weather conditions.

"The saliency of seasonal brands was temporarily impacted by shorter-than-usual summers and unseasonal rains," it added.Around 2:15 p.m., the shares of the company were trading at Rs 2047, up by Rs 34.5 or 1.71 per cent.

In the last five days, it has delivered a negative return of Rs 61 or 2.9 per cent.In the timeframe of one month, the shares have delivered a return of Rs 23 or 1.14 per cent to their investors, as per the official data.

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