Q1 2027 Zydus Wellness Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the Zydus Wellness Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day, and welcome to the Zydus Wellness Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Kamble. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to the Zydus Wellness Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Aniket Kamble. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Aniket Kamble. Thank you, and over to you, sir.

Speaker #2: Hi. It's an absolute pleasure on behalf of ICICI Securities to host the Q1 FY27 earnings call for Zydus Wellness. From the management, we have Mr. Ganesh Nayak.

Aniket Kamble: Hi. It's an absolute pleasure from ICICI Securities to host the Q1 FY27 earnings call for Zydus Wellness. From the management, we have Mr. Ganesh Nayak, Non-Executive Director, Mr. Tarun Arora, CEO, and Mr. Umesh Parikh, CFO. I now hand over the call to management for further remarks. Thank you, and over to you, sir.

Speaker #2: Non-Executive Director, Mr. Tarun Arora (CEO), and Mr. Umesh Parik (CFO). I now hand over the call to the management for further remarks. Thank you, and over to you, sir.

Speaker #3: Thank you. Good evening, and welcome to the post-results teleconference of Zydus Wellness Limited for Q1, financial year 2026-27. I have with me Mr. Ganesh Nayak, Director, and Mr. Umesh Parik, CFO, on the call from our side.

Tarun Arora: Thank you. Good evening, and welcome to the post-results teleconference of Zydus Wellness Limited for Q1, FY27. I have with me Mr. Ganesh Nayak, Director, and Mr. Umesh Parikh, CFO, on the call from our side. During the quarter, consumer demand remained resilient with spending increasingly shifting towards higher value products. The premiumization trend continued to strengthen as consumers traded up in categories such as personal care, beauty, and packaged foods, supporting value-led growth. Quick commerce and e-commerce remained the primary growth engine, sustaining strong double-digit growth and continuing to gain share across categories. However, seasonal demand was impacted by frequent summer showers across eastern regions and parts of North India in otherwise highly salient geographies, which disrupted the usual summer consumption pattern and softened demand for weather-sensitive brands, particularly Nycil.

Speaker #3: During the quarter, consumer demand remained resilient, with spending increasingly shifting towards higher-value products. The premiumization trend continued to strengthen as consumers traded up in categories such as personal care, beauty, and packaged foods.

Speaker #3: Supporting value-led growth, quick commerce and e-commerce remained the primary growth engines, sustaining strong double-digit growth and continuing to gain share across categories. However, frequent summer showers across the eastern region and parts of North India impacted otherwise highly salient geographies.

Speaker #3: This disrupted the usual summer consumption pattern and softened demand for weather-sensitive brands, particularly Nycil. On the cost front, input trends remained largely manageable despite divergent movements in commodity prices and currency.

Tarun Arora: On the cost front, input trends remained largely manageable despite divergent movements in commodity prices and currency. Company effectively navigated these pressures through disciplined pricing strategy, an improved product mix, and a continued focus on premium offerings. While ongoing geopolitical disruptions continue to create uncertainty, their impact on the company has remained limited due to proactive mitigation measures. Innovation continues to be a key driver of our portfolio growth. During the quarter, we continued to leverage our strong R&D capabilities to expand into new demand spaces, address evolving consumer preferences, and strengthen the relevance of our categories through a steady pipeline of differentiated offerings. We strengthened our portfolio with targeted innovations, namely Complan Power Play Milkshake, which extends the Complan franchise into ready-to-drink nutrition beverage segment for active kids, combining great taste with essential nutrition, and is available in vanilla and chocolate flavors with no added sugar and no preservatives.

Speaker #3: Companies effectively navigated these pressures through disciplined pricing strategy, improved product mix, and a continued focus on premium offerings. While ongoing geopolitical disruptions continued to create uncertainty, their impact on the company has remained limited due to proactive mitigation measures.

Speaker #3: Innovation continues to be a key driver of our portfolio growth. During the quarter, we continued to leverage our strong R&D capabilities to expand into new demand spaces, address evolving consumer preferences, and strengthen the relevance of our categories through a steady pipeline of differentiated offerings.

Speaker #3: We strengthen our portfolio with targeted innovations, namely, Complan Power Play Milkshake, which extends the Complan franchise into the ready-to-drink nutrition beverage segment for active kids.

Speaker #3: Combining great taste with essential nutrition, and available in vanilla and chocolate flavors with no added sugar and no preservatives. WeMax Diabetes Care is a scientifically formulated nutrition solution designed to support diabetes management through a low glycemic index and a high protein, high fiber formulation that helps manage blood sugar, promote satiety, support strength, and enhance gut wellness.

Tarun Arora: VieMax Diabetes Care, a scientifically formulated nutrition solution designed to support diabetes management through a low glycemic index and a high protein, high fiber formulation that helps manage blood sugar, promotes satiety, supports strength, and enhances gut wellness. In addition, Comfort Click business continued to expand its portfolio through multiple product launches and range extensions across key categories. Together, these initiatives reflect our continued focus on premium science-led innovation and our commitment to addressing evolving consumer health and wellness needs. On the financial front for Q1 FY27, the company reported consolidated net sales of INR 14,299, reflecting a growth of 66.7% year-on-year. Our international business, including the Comfort Click business, delivered a like-to-like growth of 24.8%, while the domestic business grew by 4.6%.

Speaker #3: In addition, Comfort Click business continued to expand its portfolio through multiple product launches and range extensions across key categories. Together, these initiatives reflect our continued focus on premium, science-led innovation and our commitment to addressing evolving consumer health and wellness needs.

Speaker #3: On the financial front for Q1, financial year 2027, the company reported consolidated net sales of ₹14,299 million, reflecting a growth of 66.7% year on year.

Speaker #3: International business, including the Complan Select business, delivered like-to-like growth of 24.8%, while the domestic business grew by 4.6%. Within the domestic portfolio, Skin and Hair Care and Food and Nutrition continued their strong momentum, delivering growth of 34.5% and 16%, respectively.

Tarun Arora: Within the domestic portfolio, skin and hair care and food and nutrition continued their strong momentum, delivering growth of 34.5% and 16% respectively. Seasonal brands, however, declined by 12% primarily due to softer summer season. Excluding the summer portfolio, all our key brands continued the momentum and cumulatively delivered strong double-digit growth in line with our expectations. With the business becoming less dependent on the summer season, our diversified portfolio continues to support more balanced growth throughout the year. In Q1 FY27, our organized channel saliency reached an industry-leading 38%, with modern trade contributing 17% and digital commerce about 21%. Gross margin expansion in the core business remained strong during the quarter and was further supported by significantly higher margin of the Comfort Click business.

Speaker #3: Seasonal brands, however, declined by 12%, primarily due to a softer summer season. Excluding the summer portfolio, all our key brands continued the momentum and cumulatively delivered strong double-digit growth in line with our expectations.

Speaker #3: With the business becoming less dependent on the summer season, our diversified portfolio continues to support more balanced growth throughout the year. In Q1 FY27, our organized channel saliency reached an industry-leading 38%, with modern trade contributing 17% and digital commerce about 20–21%.

Speaker #3: Gross margin expansion in the core business remained strong during the quarter, and was further supported by the significantly higher margin of the Comfort Click business.

Speaker #3: On the EBITDA front, company reported a growth of 55.3% for the quarter, reaching 2 rupees 2,417 million. Robust improvement in EBITDA percentage of core business, as well as comfort click business, leading to overall EBITDA percentage expansion by approximately 0.4% on a like-to-like basis.

Tarun Arora: On the EBITDA front, the company reported a growth of 55.3% for the quarter, reaching INR 2,417 million. Robust improvement in EBITDA percentage of core business as well as Comfort Click business, leading to overall EBITDA percentage expansion by approximately 0.4% on a like-to-like basis. Net profit declined by 7% during the quarter. However, net profit excluding amortization of acquired brands registered a growth of 26.5% for the quarter. Comfort Click business continued to be EPS accretive. Brand performance and market share developments are detailed in the investor presentation. Key highlights include Complan surpassed the growth posted in the previous quarter despite category degrowth. Everyuth delivered strong double-digit growth with the tan removal franchise continuing to outperform internal expectations.

Speaker #3: Net profit declined by 7% during the quarter; however, net profit excluding amortization of acquired brands registered a growth of 26.5% for the quarter. Comfort Click business continued to be EPS accretive.

Speaker #3: Brand performance and market share developments are detailed in the investor presentations. Key highlights include Complan surpassed the growth posted in the previous quarter despite category degrowth.

Speaker #3: Reviewed delivered strong double-digit growth, with the tan removal franchise continuing to outperform internal expectations. Digital-first consumer engagement expanded the brand's user base, while sustained momentum improved its ranking in the overall patient cleansing category from fifth to fourth.

Tarun Arora: Digital-first consumer engagement expanded the brand's user base, while sustained momentum improved its ranking in the overall patient-facing category from fifth to fourth rank. Glucon-D registered a double-digit growth in west and south, and moderate growth in north, were offset by weakness in the east, a highly salient market, due to frequent showers, resulting in flattish quarter. Nycil's performance was significantly impacted due to unseasonal rainfall in the north and east, key saliency markets, which saw double-digit growth in west and south, along with cautious channel stocking and slower uptake given by a higher retailer inventory of the last year. Nutralite delivered strong growth supported by portfolio strength, innovation, AI-assisted consumer engagement, and a high double-digit 6-year CAGR. RiteBite Max Protein continued its strong growth trajectory, reinforcing leadership in protein snacking through innovation, expanded distribution, and execution excellence, driving robust value, volume, and margin growth.

Speaker #3: Look On D registered double-digit growth in West and South, and moderate growth in North, which was offset by weakness in the East, a highly salient market due to frequent showers resulting in a flattish quarter.

Speaker #3: Nysen's performance was significantly impacted due to unseasonal rainfall in the North and East, key saliency markets, which stated double-digit growth in West and South, along with cautious channel stocking and slower uptake given higher retailer inventory from last year.

Speaker #3: Nutralite delivered strong growth, supported by portfolio strength, innovation, AI, consumer engagement, and a high double-digit six-year CAGR. RiteBite Max Protein continued its strong growth trajectory, reinforcing leadership in protein snacking through innovation, expanded distribution, and execution excellence.

Speaker #3: Driving robust value, volume, and margin growth. Quick commerce remained a key growth driver through continued distribution expansion. Cuticular witnessed strong demand traction, meeting internal expectations with positive consumer feedback across organized retail channels.

Tarun Arora: Quick commerce remained a key growth driver through continued distribution expansion. Cuticular witnessed strong demand traction on internal expectations with positive consumer feedback across organized retail channels. Within the suite of portfolios, Sugar Free maintained category leadership, delivering double-digit growth in the core portfolio and significantly outperforming category trends. Sugar Free D'lite continued its strong momentum, delivering its high double-digit growth. mLife further strengthened its healthier living proposition, delivering higher double-digit growth on a year-on-year basis. With the Comfort Click business, we strengthened our internal presence by launching the WeightWorld D2C platform in the US, expanding into the Walmart marketplace, and accelerating Middle East growth through launches of WeightWorld and MaxMedix on Noon UAE, alongside establishing a physical UAE base. Our long-term growth strategy remains anchored in building a future-ready premium portfolio through disciplined execution and technology-enabled decision-making.

Speaker #3: Within the Sweet Home portfolio, Sugar-Free maintained category leadership, delivering double-digit growth in the core portfolio and significantly outperforming category trends. Sugar-Free Delight continued its strong momentum, delivering its high double-digit growth.

Speaker #3: Amlite further strengthened its 'healthier life, healthier living' proposition, delivering higher double-digit growth on a year-on-year basis. With the Complan and Glucovita business, we strengthened our international presence by launching the Vedworld D2C platform in the US, expanding into the Walmart marketplace, and accelerating Middle East growth through launches of Vedworld and Max Medics on Noon UAE.

Speaker #3: Alongside establishing a physical UAE base, a long-term growth strategy remains anchored in building a future-ready premium portfolio through disciplined execution and technology-enabled decision-making. By leveraging technology and analytics across innovation, consumer engagement, brand investments, and execution, we are anticipating evolving consumer needs, strengthening organizational agility, enhancing investment effectiveness, and building a resilient platform for sustainable, profitable growth.

Tarun Arora: By leveraging technology and analytics across innovation, consumer engagement, brand investments, and execution, we are anticipating evolving consumer needs, strengthening organizational agility, enhancing investment effectiveness, and building a resilient platform for sustainable, profitable growth. Thank you. We will now begin the Q&A session. Over to the coordinator.

Speaker #3: Thank you. We will now begin the Q&A session. Over to the coordinator.

Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Jatelia from Artico Asset Management. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Jatelia from Artico Asset Management. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Jatelia from Artico Asset Management.

Speaker #1: Please go ahead.

Speaker #2: Hi. I hope I'm audible. Yes, yes. Sure, sure. Thanks for the opportunity. Just, firstly, I'm in international business, sir. We have broadly reported approximately 25% year-over-year like-for-like growth.

Hardik Jatelia: Hi. I hope I'm audible.

Hardik Jatheliya: Hi. I hope I'm audible.

Operator 2: Yes. You are audible.

Operator: Yes. You are audible.

Hardik Jatelia: Yeah. Sure. Thanks for the opportunity. Just firstly, on the international business, sir, we have broadly reported an approximately 25% Y-o-Y like-for-like growth. Just to understand, was this quarter in any way constrained by stock availability or supply chain disruptions?

Hardik Jatheliya: Yeah. Sure. Thanks for the opportunity. Just firstly, on the international business, sir, we have broadly reported an approximately 25% Y-o-Y like-for-like growth. Just to understand, was this quarter in any way constrained by stock availability or supply chain disruptions?

Speaker #2: So just to understand, was this quarter in any way constrained by stock availability or supply chain disruption? No, there were no specific constraints for us.

Tarun Arora: No, there were no specific constraints for us. 25% is a good growth. We've been talking about our double digits.

Speaker #2: 25% is a good growth. We've been talking about our double-digit growth, and that should be the growth rate broadly which we should be working with for the upcoming quarter. This should be the new sustainable growth rate.

Hardik Jatelia: That should be the growth rate broadly that we should be working with for the upcoming quarter, and this should be the new sustainable growth rate?

Hardik Jatheliya: That should be the growth rate broadly that we should be working with for the upcoming quarter, and this should be the new sustainable growth rate?

Speaker #2: We normally don't give a forward-looking statement; we've just said double-digit, so that's what we will maintain. Fair, thanks. I'll get back with you.

Tarun Arora: We normally don't give a forward-looking. We just said double digits, so that's what we will maintain.

Hardik Jatelia: Fair. Thanks, sir. I'll get back with you

Hardik Jatheliya: Fair. Thanks, sir. I'll get back with you

Speaker #1: Thank you. The next question is from the line of Simran Kumari from Namolya Financial Services Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Simran Kumari from Nomura Financial Services Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Simran Kumari from Nomura Financial Services Limited. Please go ahead.

Simran Kumari: Hello. Good afternoon, sir. Am I audible? Hello.

Speaker #4: Hello. Good afternoon, sir. Am I audible? Hello?

Speaker #1: Yes, you are audible. Please ask your question.

Operator 2: Yes, you are audible. Please ask.

Operator: Yes, you are audible. Please ask.

Speaker #4: Yeah, I'm good. I just wanted to get an outlook on the effective taxes, taxes across FY27 and FY28.

Simran Kumari: Hi, sir. I just wanted to get an outlook on the expected tax rate across FY27 and FY28.

Speaker #2: So, you know, as probably you would have noticed, the current effective tax for this quarter, Q1, is close to 27%. And that's largely because of the, you know, disallowance of some of the items because of the thin cap rule in the UK. Otherwise, you know, it would be in the range of 25%.

Umesh Parikh: As probably you would have noticed that the current effective tax for this quarter, Q1, is close to 27%, and that's largely because of the disallowance of some of the items, because of thin capitalisation rule in the UK. Otherwise, it would be in the range of 25%. Having said that, out of 25%, 22% to 15% would be a cash component this financial year. From next year, we probably would be in the 25% tax rate entirely in cash.

Speaker #2: Having said that, out of 25, around 12% to 15% would be a cash component this financial year. From next year, we would probably be in the 25% tax rate, entirely in cash.

Speaker #4: Oh, so for FY27, we can get, like, a 25% effective tax rate. Is it?

Simran Kumari: For FY27, we can get 25% tax rate, effective tax rate.

Speaker #2: Yeah, that includes the deferred tax, but the cash component would be lower—maybe half of 25, a little more than half.

Umesh Parikh: Yeah. That includes the deferred tax, but the cash component would be lower, maybe half of 25%, or little more than half.

Speaker #4: Okay, sir. Thank you. And I have another question. If we see that the interest rate during the quarter has reduced versus quarter-on-quarter, may I know the reason behind the reduction in the interest rate?

Simran Kumari: Okay, sir. Thank you. I have another question. If we see that interest rate during the quarter has been reduced versus quarter on quarter. May I know the reason behind reduction of interest rate, please?

Speaker #2: No, we have, you know, actually transitioned from the GBP loan to the euro loan at a much reduced interest rate. And therefore, you know, that gave us a saving.

Umesh Parikh: We have actually transitioned from the GBP loan to euro loan at a much reduced interest rate, and therefore, that gave us a saving in the interest cost. Going forward, I think it should hover around this subject to the benchmark rate, which is declared in euro.

Speaker #2: In the interest cost, and going forward, I think it should hover around this, subject to the benchmark rate, which is declared in euro.

Speaker #4: So, for the upcoming quarter, is it the effective one like the one that we saw in...

Simran Kumari: For the upcoming quarters, will the effective finance cost language be the same like the one that you showed?

Speaker #2: Yeah. Yeah. Yeah, unless there is a too much of variability in the base rate, in euro currency, otherwise, you know, it will be if it, if it remains the same or around the same, the, the effective interest would be around the same amount.

Umesh Parikh: Yeah. Unless there is too much of variability in the base rate in euro currency. Otherwise, if it remains the same or around the same, the effective interest would be around the same amount.

Speaker #4: Okay, sir. Can I ask one last question?

Simran Kumari: Okay, sir. Can I squeeze in one last question?

Speaker #2: Sure.

Umesh Parikh: Sure.

Speaker #4: Can you just provide an outlook for next year’s revenue, for this quarter as well as for the year FY27?

Simran Kumari: Can you just provide an outlook on Nycil revenue for this quarter as well as for the year FY27?

Speaker #2: So, Michael has had a difficult last quarter, largely because it was.

Umesh Parikh: Nycil has had a difficult last quarter, largely because-

Simran Kumari: Sorry to interrupt, but I'm asking of Nycil, not Nycil.

Speaker #4: Can I ask you—sorry to interrupt—but I'm asking about next year, not this year. Sorry.

Speaker #2: Okay. Max protein business. That's been growing on a very that's, that's been growing at, more than double the historical growth rate as we have reported earlier as well.

Umesh Parikh: Okay. Max Protein business. That's been growing at more than double the historical growth rate, as we have reported earlier as well, and we continue to see a very strong momentum led by three axes. One is brand building, where we are expanding our investments on brand building. You would have probably seen it on FIFA World Cup and various other places. Second is distribution expansion. The third is enhancing our portfolio. We are expecting it to maintain its growth momentum.

Speaker #2: And we continue to see very strong momentum led by three actions. One is brand building, where we are expanding our investments in brand building.

Speaker #2: You would have probably seen it at the FIFA World Cup and various other places. Second is distribution expansion. And third is enhancing our portfolio. So, we are expecting it to maintain its growth momentum.

Speaker #4: Okay, thank you, sir. A lot of it is for the future quarter.

Simran Kumari: Okay. Thank you, sir. A lot of hope for the future quarters.

Speaker #1: Thank you. The next question is from the line of Umansha from Banyan Tree Advisors. Please go ahead.

Operator 2: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors. Please go ahead.

Operator: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors. Please go ahead.

Speaker #5: Hi. Am I audible, sir? Hello?

Umang Shah: Hi, am I audible, sir? Hello.

Speaker #2: Yes. Yes, you are audible.

Umesh Parikh: Yes. You are audible.

Speaker #5: Yeah. Hi, sir. Thank you for taking my question. I just had one question with respect to the summer portfolio. Our understanding was that the monsoon this time was quite delayed all across India.

Umang Shah: Hi, sir. Thank you for taking my question. I just had one question with respect to the summer portfolio. Our understanding was that the summer, the monsoon this time was quite delayed all across India, and our volumes was higher in west and north. In that context, just wanted to understand if you could help us understand this 12% decline in terms of the geographical market.

Speaker #5: And our savings were higher in Western North. So, in that context, I just wanted to understand if you could help us with this 12% decline in terms of the geographical markets.

Speaker #2: Sure. So, let me break it down. And I think, if you would have heard, we've had flat, flattest growth in Yukondi and a bigger impact is coming on ISIN.

Umesh Parikh: Sure. Let me break it down, I think if you would have heard, we've had a flattish growth in Glucon-D and a bigger impact is coming on Nycil. As far as Glucon-D is concerned, it's largely the impact of east. North and east are the most significant part of our portfolio, the highest volume, where east has actually impacted us. Therefore, while north and west and south have seen a positive momentum, all that gain has been nullified by east, where there were continued rain, especially in April and May. If I look at Nycil, there I think there are two or three again, north and east have been the biggest challenges because west and south have seen good growth. North and east are some of the most salient geographies for Nycil as well.

Speaker #2: Now, as far as Glucon-D is concerned, it's largely the impact of the East, which is—North and East are the most significant parts of our portfolio.

Speaker #2: The highest salient, where East has actually impacted us, and therefore, while North has and West and South have seen a positive momentum, but all that gain has been nullified by East, where there was continued rain, especially in April and May.

Speaker #2: And if I look at NYSEL, I think there are two or three there again. North and East have been the biggest challenges because West and South have seen good growth.

Speaker #2: North and east are some of the most salient geographies, for NYSEL as well. And there, it is also compounded by the fact that there has been a subsequent retail—stocks within the consumer stocks.

Umesh Parikh: There it is also compounded by the fact that there has been a sufficient retail stocks within the consumer stock. Therefore, the optics have been challenging. Towards the end of the quarter, we've seen. Actually, it was more towards the first half of the quarter. The second of the quarter, we have seen a good recovery in growth rates for both these brands, but not enough to recover the full growth for the quarter. As we speak, we are seeing growth momentum coming back, and we should end up on a more positive note for the remaining part of the financial year, hopefully.

Speaker #2: So, therefore, the offtakes have been a little bit—not a little bit, it has been challenging—but towards the end of the quarter, actually it was more towards the first half of the quarter; in the second half of the quarter, we have seen a good recovery in growth rates.

Speaker #2: For both these brands, but not enough to recover the full growth for the quarter. But as we speak, we are seeing growth momentum coming back.

Speaker #2: And we should end up on a more positive note for the remaining part of the financial year—hopefully.

Speaker #5: Understood. Understood. And, how does the launch pipeline look like this year?

Aniket Kamble: Understood. How does the launch pipeline look like this year?

Umang Shah: Understood. How does the launch pipeline look like this year?

Speaker #2: So we've had a series of launches, if you look at the last three to four quarters, across the portfolio—whether it's Complan, Sugar-Free, Max Protein, Glucon-D, we've had, and even Nutrite, we've had a series of launches.

Umesh Parikh: We've had a series of launches, if you look at in last three to four quarters, across the portfolio. Whether it's Complan, Sugar Free, Max Protein, Glucon-D, and even Nutralite. We've had series of launches.

Tarun Arora: We've had a series of launches, if you look at in last three to four quarters, across the portfolio. Whether it's Complan, Sugar Free, Max Protein, Glucon-D, and even Nutralite. We've had series of launches.

Speaker #2: We have a couple of more launches in the coming quarters, but I think our focus is the launches that we've done, the NPDs we've done, how to scale them up, and we're quite excited with the possibilities because some of them have shown very good, you know, response from consumers and trade.

Tarun Arora: We have couple of more launches in the coming quarters, but I think our focus is the launches that we have done, the NPDs we have done, how to scale them up. We are quite excited with the possibilities because some of them have shown very good response from consumers and trade. We hope to build them further. Our long-term pipeline is looking fairly robust for next two to three years.

Speaker #2: So we hope to build them further. Our long-term pipeline is looking fairly robust for the next two to three years.

Speaker #5: Understood. Understood. And this last question: this expansion that we are doing in Comfortlist in the US and Middle East, the services and support team continues to be in India, right?

Umang Shah: Understood. This last question. This expansion that we are doing within Comfort Click in US and Middle East, the services and support team continue to be in India, right? We'll not be expanding those in the new countries that we set up.

Speaker #5: We will not be expanding those in the new countries that we set up.

Speaker #2: Yeah, the support team continues to be in India.

Tarun Arora: Yeah. Support team continues to be in India, yeah.

Speaker #5: Yeah, all right. Thank you so much.

Umang Shah: All right. Thank you so much.

Speaker #1: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant.

Operator 2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Mayur Parkeria from Wealth Managers (India) Pvt Ltd. Please go ahead.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Mayur Parkeria from Wealth Managers (India) Pvt Ltd. Please go ahead.

Speaker #1: The next question is from the line of Mayur Parakia from Wealth Managers India Private Limited. Please go ahead.

Speaker #6: Good afternoon to the entire team. I think, given the challenges you faced for NYSEL, it was still a decent quarter that we went through.

Mayur Parkeria ): Good afternoon to the entire team. I think given the challenges which you faced for Nycil, I think it was still a decent quarter which we go through. While there is clearly expectation, which was now for investors were higher, but there's an industry situation, given that, a great execution. I had two questions on Comfort Click itself. First is, because of the fact of Comfort Click now getting consolidated, but we have seasonality not in our favor for September and December quarters as we go ahead. We have high fixed cost into our P&L in terms of interest and depreciation cost of close to INR 80, 85 crores. I just want to understand that is it possible that we will report positive EBITDA as we go ahead, despite this high-cost structure in the September and December quarters because of the seasonality products?

Mayur Parkeria: Good afternoon to the entire team. I think given the challenges which you faced for Nycil, I think it was still a decent quarter which we go through. While there is clearly expectation, which was now for investors were higher, but there's an industry situation, given that, a great execution. I had two questions on Comfort Click itself. First is, because of the fact of Comfort Click now getting consolidated, but we have seasonality not in our favor for September and December quarters as we go ahead. We have high fixed cost into our P&L in terms of interest and depreciation cost of close to INR 80, 85 crores. I just want to understand that is it possible that we will report positive EBITDA as we go ahead, despite this high-cost structure in the September and December quarters because of the seasonality products?

Speaker #6: So, while there is clearly expectation—which was now, for investors, higher—but there's an industry situation. So, given that, a great execution.

Speaker #6: I had two questions on Comfort Click itself. First is, you know, because of the fact that Comfort Click is now getting consolidated, but we have seasonality not in our favor for the September and December quarters as we go ahead.

Speaker #6: And now we have high fixed costs in our P&L, in terms of interest and depreciation costs of close to ₹80–85 crore.

Speaker #6: is and I just want to understand that is it possible that we will, report, positive EBITDA as we go ahead, despite this high cost structures for the next as be in the unseas in the in the September and December quarters because of the seasonality products not being there?

Speaker #2: Definitely possible. So, you know, as we have mentioned earlier also, Comfort Leak has become EPS accretive from Q4 of the last financial year and continues to do so.

Tarun Arora: As we have mentioned earlier also, that Comfort Click has become EPS accretive from Q4 of the last financial year and continue to do so. If the same momentum continues, which we expect, I think we'll register increase in the net margin as well as the EBITDA as well as profit before tax.

Speaker #2: And in the same momentum continues, which we expect, I think, you know, will, will, you know, register, you know, increase in the, margin, the, the net margin as well as the, the, you know, profit before tax.

Speaker #2: EBIT as well as profit before tax.

Speaker #6: Okay, okay. So that's great—confidence. I think it will also be positive. And since the rain impacts are behind us, I think, and we are seeing some recovery on the domestic side, this will help us.

Mayur Parkeria ): Okay. That's a great confidence. I think it will also be positive. Since the rain impacts are behind us, I think, we are seeing some recovery in the domestic side, this will help us. Will that be a correct understanding overall?

Mayur Parkeria: Okay. That's a great confidence. I think it will also be positive. Since the rain impacts are behind us, I think, we are seeing some recovery in the domestic side, this will help us. Will that be a correct understanding overall?

Speaker #6: Will that be a correct understanding overall?

Speaker #2: Yes. Yes.

Tarun Arora: Yes.

Speaker #6: Okay. The second question is on the comfort click I had was, you know, there is a lot of, narrative now being, you know, because be because of the GLP-1 adoption, across the globe, you know, the importance of, our portfolio in terms of this, diabetes management and, the, you know, various vitamins and, you know, va the package which is required, from that perspective, I wanted to understanding of that.

Mayur Parkeria ): Okay. The second question is on the Comfort Click I had was, there is a lot of narrative now because of the GLP-1 adoption across the globe, the importance of our portfolio in terms of this diabetes management and the various vitamins and the package which is required. From that perspective, I wanted two understanding of that. Is any of our products will require a doctor's prescription or a prescriptive situation or is it consumed on a completely on an OTC basis by the consumers? How is it abroad? Firstly, secondly, how are you seeing the early signs in the US entry, and can that be a big needle driver for Comfort Click as we go ahead in the next two years?

Mayur Parkeria: Okay. The second question is on the Comfort Click I had was, there is a lot of narrative now because of the GLP-1 adoption across the globe, the importance of our portfolio in terms of this diabetes management and the various vitamins and the package which is required. From that perspective, I wanted two understanding of that. Is any of our products will require a doctor's prescription or a prescriptive situation or is it consumed on a completely on an OTC basis by the consumers? How is it abroad? Firstly, secondly, how are you seeing the early signs in the US entry, and can that be a big needle driver for Comfort Click as we go ahead in the next two years?

Speaker #6: Is any of our, products will require a, you know, a doctor's prescription or a prescriptive situation or is it a consumed on a, completely de you know, on a OTC basis by the consumers?

Speaker #6: How is it, out broad, firstly? And secondly, how are you seeing the early signs in the US entry, and can that be a, you know, big needle driver for Complan, as we go ahead in the next two years?

Speaker #6: Yeah.

Speaker #2: So, you've asked two or three parts to this question. First of all, Comfort Click portfolio is a digital-only business, largely, and there is no doctor prescription involved.

Tarun Arora: You've asked two or three parts to this question. First of all, Comfort Click portfolio is digital only business largely, and there is no doctor prescription involved. All the products are OTC by nature and therefore don't need any prescriptions. We do not envisage any change to this structurally. Therefore, any demand which arises out of GLP-1 or any other trends, we'll remain from a servicing these requirements perspective. That should take care of the whole thing. Did you have any other part to it?

Speaker #2: Most of—no, not most. All the products are OTC by nature and therefore don't need any prescriptions, and we do not envisage any change to this structurally.

Speaker #2: And therefore, any demand which arises out of GLP-1 or any other trends, we will remain focused on servicing these requirements from our perspective. Yeah.

Speaker #2: So that should—that should take care of the whole thing. Did you have any other part to it?

Speaker #6: You the US the US part, how do you how you see early signs of, you know, entry and what how do you if, you know, over the next two years, do you think it will be a ve meaningful driver, for, comfort click, as we go ahead?

Mayur Parkeria ): The US part, how you see early signs of entry and how over the next two years, do you think it will be a meaningful driver for Comfort Click as we go ahead?

Mayur Parkeria: The US part, how you see early signs of entry and how over the next two years, do you think it will be a meaningful driver for Comfort Click as we go ahead?

Speaker #2: Too early to predict, but right now, it's very, very small but growing well. So we are positive, and we are building on it. I will tell you where it shapes up, but it's a very small portion of our business right now, though growing well in line with our expectations.

Tarun Arora: Too early to predict, but right now, very small but growing well. We are positive and we are building on it. Time will tell where it shapes up, but it's a very small portion of our business right now, but growing well, in line with our expectations.

Speaker #6: Oh, okay. Thank you. I'll come back in the Q&A with more questions.

Mayur Parkeria ): Okay. Thank you. I will come back in the queue for more questions.

Mayur Parkeria: Okay. Thank you. I will come back in the queue for more questions.

Speaker #1: Thank you very much. The next question is from the line of Ronik Shah from Equitas Securities. Please go ahead.

Operator 2: Thank you very much. The next question is from the line of Ronak Shah from Equirus Securities. Please go ahead.

Operator: Thank you very much. The next question is from the line of Ronak Shah from Equirus Securities. Please go ahead.

Speaker #7: Thanks for the opportunity. So, my first question is regarding the seasonal portfolio. Now that the major part of that—two brands—have been called up, can we expect further channel-related disruption in terms of higher inventory in the next cycle or the next season?

Ronak Shah: Thanks for the opportunity. My first question is regarding the seasonal portfolio. Now the major part of that two brands have been called off and can we see a further channel-related disruption in terms of higher inventory in the next hike or the next season?

Speaker #2: Not really, because if we really look at it, I mean, it's very hard to predict because we have visibility on what is the stock in our system and with our distributors.

Tarun Arora: Not really because if you really look at it, I mean, very hard to predict because we have a visibility on what is the stock in our system and with our distributors. We cannot predict beyond a point, but whatever I have seen of it, I think let's look at it. Our own inventory is not more than what it was last year, probably a bit lower. Secondly, the shelf life of the products is 3 years. Sometimes in a bad season, it can prolong the usage, and consumers typically buy 1 to 1 and a half pack in a season. That's the history of this whole thing. I do not see this really rolling over to a next year issue. Already a good sign of a positive growth on a low base already in last 2 months.

Speaker #2: We can't predict beyond a point, but whatever I have seen of it, I think, let's look at it—our own inventory is not more than what it was last year, probably a bit lower.

Speaker #2: Secondly, the shelf life of the products is three years. So sometimes, in a bad season, it can prolong the usage, you know, and consumers typically buy one to one-and-a-half packs in a season.

Speaker #2: So that's the history of this whole thing. I don't see this, really rolling over to a next year issue. I already a good sign of a positive growth, on a re on a, low base, already in last ma last couple of months.

Speaker #2: So, I'm quite positive about how this will shape up over the coming quarters. But finally, the numbers will have to play out.

Tarun Arora: I'm quite positive about how this will shape up over the coming quarters. Finally, the numbers will have to play out.

Speaker #7: Understood. Secondly, from our right back, next noting portfolio, wherein we are seeing very strong traction both in terms of top line and profitability.

Ronak Shah: Understood. Secondly, from our RiteBite Max Protein portfolio, wherein we are seeing very strong traction both in terms of top line and profitability. How's the progress we are seeing in terms of the offline expansion, especially into the newer T2, T3 regions wherein we are seeing very good early sign of visibility based on our initial checks?

Speaker #7: How is the progress we are seeing in terms of the offline expansion, especially into the newer T2 and T3 regions, where we are seeing very good early signs of visibility based on our initial checks?

Speaker #2: So, we are seeing very good traction in our distribution. And I mentioned, in response to an earlier question, three drivers of growth: brand, portfolio, and distribution.

Tarun Arora: We are seeing very good traction. Our distribution, I mentioned in earlier question, three drivers of growth were brand, portfolio, and distribution. We are going deeper and wider. In offline, specifically, we have committed resources in terms of distribution expansion, and that's really working for us. We will continue, but we are selective about it because these are high-value products, and still it is top towns which contribute to a significant throughput. We will continue to drive it deeper and wider. Rural is too far, but next two plus of towns, I think we are already seeing a good traction.

Speaker #2: So, we are going deeper and wider. And, in offline specifically, we have committed resources in terms of distribution expansion, and that's really working for us.

Speaker #2: So we will continue, but we are selective about it because these are high-value products. And still, it is top-down, which contributes to a significant, you know, throughput.

Speaker #2: So, we'll continue to drive it deeper and wider. Rural is too far, but next to plus towns, I think we are already seeing good traction.

Speaker #7: Okay, and lastly on the Comfort Click part—so, when we are seeing very strong double-digit growth over there, based on our understanding, the UK is one of the larger parts and the balance of the EU market is the larger secondary pie.

Ronak Shah: Okay. Sir, lastly, on the Complan part, when we are seeing very strong double-digit growth over there. Based on our understanding, UK is one of the larger part, and balance of the EU market is the larger secondary pie. How the growth rates are segregated between these two geographies?

Speaker #7: So, how are the growth rates segregated between these two geographies?

Speaker #2: So, we don’t segregate UK and the rest of Europe. I would say Europe has five key markets, namely, the UK, France, Italy, Germany, and Spain, which constitute a bulk of our business.

Tarun Arora: We don't segregate UK and rest of Europe. Europe has five key markets, namely UK, France, Italy, Germany, and Spain, which constitute the bulk of our business. I think overall growth rate is captured here. Market by market growth will be a little I would want to avoid sharing those things. We don't go there.

Speaker #2: And, I think overall, growth rate is captured here. Market-by-market growth will be a little— I mean, I would want to avoid sharing those things.

Speaker #2: We don't go there.

Speaker #7: No issues. No issues. That's it from my side. Thank you.

Ronak Shah: No issues. That's it from my side. Thank you.

Speaker #1: Thank you very much. The next question is from the line of Aniket Kambley. Please go ahead.

Operator 2: Thank you very much. Next question is from the line of Aniket Kamble. Please go ahead.

Operator: Thank you very much. Next question is from the line of Aniket Kamble. Please go ahead.

Speaker #4: Yeah. Hi, team. So my question is on the comp plan. For the past two quarters, we have been reporting good growth in the comp plan segment.

Aniket Kamble: Yeah. Hi, team. My question is on Complan. From past two quarters, we have been reporting good growth in the Complan segment and despite the category degrowing. What has fundamentally changed from the recent past that is helping us to grow in this category? That is question number one.

Speaker #4: And, despite the category degrowing, what has fundamentally changed from the recent past that is helping us to grow in this category? That is question number one.

Speaker #2: So, I think our approach has been fairly consistent as far as the comp plan is concerned. We have looked at, you know, breaking down the whole comp plan into three or four segments.

Tarun Arora: I think our approach has been fairly consistent as far as Complan is concerned. We have looked at breaking down the whole Complan into three or four segments. First is the four kids segment, which has been most under pressure. Our constant endeavor to offer better superior nutrition, supported by high-quality advertising and investments and distribution expansion has helped us focus and get growth back on this. We've also got celebrity, Vaibhav Sooryavanshi, who's been a Complan boy now for couple of quarters. Plus, if I look at it, we are also participating in specialized nutrition spaces with toddler space for Complan Nutri-Gro and adult nutrition through VieMax and VieMax Diabetes Care now, which we launched last quarter.

Speaker #2: First is the fourth kid segment, which has been most under pressure. Our constant endeavor to offer better, superior tuition, supported by high-quality advertising and investments in distribution expansion, has helped us focus and get growth back on this.

Speaker #2: We've also got celebrity Veber Surivanshi, who's been a Complan boy now for a couple of quarters. Plus, if I look at it, we are also participating in specialized nutrition spaces with the toddler space for Complan Nutrico and adult nutrition through Vmax and Vmax Narratives now, which we launched last quarter.

Speaker #2: And we are also wanting to—not wanting, we have actually entered—a new space, which is new for the brand, which is the RTD, where Complan Power Play is coming in.

Tarun Arora: We have actually entered a new space, which is new for the brand, which is the RTD where Complan Power Play is coming in. We believe through multiple formats and propositions, the Complan overall brand is seeing a good acceptance from consumers and the whole brand-building initiative, portfolio expansion, and distribution pieces coming together in the way we had envisioned. We are hopeful that this momentum will continue. There is headwinds thanks to what the category faces, but we've been able to navigate now for two, three quarters. We hope to continue that momentum.

Speaker #2: We believe through multiple formats and propositions, the comp plan and overall brand are seeing good acceptance from consumers. The whole brand building initiative, portfolio expansion, and distribution piece are coming together in the way we had initialized.

Speaker #2: So we're hopeful that this momentum will continue. There are headwinds, given what the category faces, but we've been able to navigate them now for two to three quarters.

Speaker #2: We hope to continue that momentum.

Speaker #4: Loud and clear, sir. One more thing on the same part: the growth that we have—the additional growth that we have been reporting—is it coming more from the kids' nutrition portfolio or the adult nutrition portfolio?

Aniket Kamble: Loud and clear, sir. One more thing on the same part. The additional growth that we have been reporting, is it coming more from the kids nutrition portfolio or the adult nutrition portfolio?

Speaker #2: It's coming across, but kids' nutrition is the core of the business, a substantial part of the business. So that is certainly contributing to it.

Tarun Arora: It's coming across, kids nutrition is the core of the business, a substantial part of the business. That is certainly contributing to it. That's the driver of it.

Speaker #2: That's the driver of it.

Speaker #4: Okay. Thank you, sir. Super, thank you.

Aniket Kamble: Okay. Thank you, sir.

Operator 2: Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask any questions may press star and one. The next question is from the line of Parth Sodha from Trinetra Asset Managers. Please go ahead.

Operator: Thank you very much. Reminder for all participants, please press star and one to ask a question. Participants who wish to ask any questions may press star and one. The next question is from the line of Parth Sodha from Trinetra Asset Managers. Please go ahead.

Speaker #1: Thank you very much. A reminder for all participants: please press star and one (*1) to ask a question. Participants who wish to ask any questions may press star and one (*1).

Speaker #1: The next question is from the line of Parth Sota from Srijanra Asset Managers. Please go ahead.

Speaker #5: And my audience, hello.

Parth Sodha: Am I audible? Hello.

Speaker #2: Yes.

Tarun Arora: Yes.

Speaker #5: So first of all, thank you for the opportunity. So my question is around protein portfolio, like our pro protein portfolio. Like, how do you see the revenue mix evolving within profit protein portfolio over, let's say, next three years?

Parth Sodha: First of all, thank you for the opportunity. My question is around protein portfolio, like our protein portfolio. How do you see the revenue mix evolving within protein portfolio over, let's say, next three years? Will protein bars remain the largest contributor, or do adjacent categories like beverages and snacks have the potential to become meaningful growth drivers?

Speaker #5: Will protein bars remain the largest contributor, or do adjacent categories like beverages and snacks have the potential to become meaningful growth drivers?

Speaker #2: It's very hard to predict which part will grow much bigger. Each one of them has substantially large possibilities. We are driving each one of them with an equal level of conviction.

Tarun Arora: Very hard to predict on which part will grow much bigger. Each one of them has substantially large possibilities. We are driving each one of them with an equal level of conviction. Right now, bars constitute the largest part of our portfolio, but three years out, hard to predict today.

Speaker #2: Right now, bars constitute the largest part of our portfolio, but three years out, it's hard to predict today.

Parth Sodha: Okay. My second question is, Everyuth continues to gain market share in facial cleansing. Beyond the current portfolio, do you see any opportunity to expand into adjacent skincare categories while maintaining profitability?

Speaker #5: Okay. And my second question is, Mike, you continue to gain market share in personal hygiene and cleansing (PHL). So beyond the current portfolio, do you see any opportunity to expand into adjacent skin care categories while maintaining profitability?

Speaker #2: Yes. So, while our core remains in patient cleansing and within that, there is enough space for the core to grow—basic scrubs, peel-off, face wash—but within that, we have been exploring around new propositions like tan removal, anti-pollution, and other things that we have in our pipeline.

Tarun Arora: Yes. While our core remains in facial cleansing, and within that there are enough space for the core to grow, basic scrubs, peel-off, face wash. Within that, we've been exploring around new propositions like tan removal, anti-pollution, and other things that we have in our pipeline. Beyond that, we are certainly exploring, but I think in a smaller way because there is enough resources required to just drive this growth in a profitable way. We'll keep piloting and exploring, and expanding in the other spaces too, till they become sizable and meaningful. Today, I think our priority remains on facial cleansing, where we see a big enough room for growth and make this brand a sizable skincare brand.

Speaker #2: Beyond that, we are certainly exploring, but I think in a smaller way because there are enough resources required to just drive this growth in a profitable way.

Speaker #2: So we keep piloting, exploring, and expanding in other spaces too, until they become sizable and meaningful. But today, I think our priority remains on patient cleansing, where we see a big enough room for growth and to make this brand a sizable skincare brand.

Speaker #5: Okay, got it. That's all from my side. And happy again.

Parth Sodha: Okay, got it. That's all from my side and happy to help.

Speaker #1: Thank you. The next question is from the line of Mayur Parkeria—a follow-up question from Wealth Managers India Private Limited. Please go ahead.

Operator 2: Thank you. The next question is from the line of Mayur Parkeria, a follow-up question from Wealth Managers (India) Pvt Ltd. Please go ahead.

Operator: Thank you. The next question is from the line of Mayur Parkeria, a follow-up question from Wealth Managers (India) Pvt Ltd. Please go ahead.

Mayur Parkeria ): Thank you once again for taking the follow-up. I had a question on the RiteBite side. When we acquired, I think it was around 200 or 220 odd crores, if I remember. Was that the number when we acquired the business size?

Mayur Parkeria: Thank you once again for taking the follow-up. I had a question on the RiteBite side. When we acquired, I think it was around 200 or 220 odd crores, if I remember. Was that the number when we acquired the business size?

Speaker #6: Thank you once again for taking a follow-up. I had a question on the Right Bite side. You know, when we acquired, I think it was around 200 or 220-odd crore risk, if I remember.

Speaker #6: Was that the number when we acquired that, the business size?

Speaker #2: Acquired 20 years ago, we had—when we acquired, we had reported—we acquired in quarter three, Q3 '24. Reported number was close to about ₹130 crore.

Tarun Arora: FY24, when we acquired, we had reported. We had acquired in Q3, FY24 reported number was close to about 130 odd crores.

Speaker #6: 130.

Mayur Parkeria ): 130.

Mayur Parkeria: 130.

Speaker #2: 230 or 120. Sorry, 120.

Tarun Arora: It was 120. Sorry, 120.

Speaker #6: Sorry, not 120. 120.

Mayur Parkeria ): Sorry, not 20. 120.

Mayur Parkeria: Sorry, not 20. 120.

Tarun Arora: It was closer to 120.

Speaker #2: 120. Closer to 120.

Speaker #6: 120, yes. So now, you know, when we look at the market and the various expansion of distribution which you have done—apart from the quick commerce—we also see good visibility now in offline channels.

Mayur Parkeria ): 120, yes. When we look at the market and the various expansion of distribution which you have done, apart from the quick commerce, we also see good visibility now in offline channels. I just wanted to understand that while the business continues to grow from the time when we acquired, has the number of SKUs also gone meaningful change? I'm not asking only in terms of the grammage change, which we see in the market, but the number of SKUs. Is that a big driver of the growth or is it the similar kind, the old portfolio SKUs which are driving and the new? How has been the growth, if you can add some color on it, and what is the strategy behind this product expansion?

Mayur Parkeria: 120, yes. When we look at the market and the various expansion of distribution which you have done, apart from the quick commerce, we also see good visibility now in offline channels. I just wanted to understand that while the business continues to grow from the time when we acquired, has the number of SKUs also gone meaningful change? I'm not asking only in terms of the grammage change, which we see in the market, but the number of SKUs. Is that a big driver of the growth or is it the similar kind, the old portfolio SKUs which are driving and the new? How has been the growth, if you can add some color on it, and what is the strategy behind this product expansion?

Speaker #6: I just wanted to understand that, while the business continues to grow from the time when we acquired, w has the number of SKUs also gone meaningful change means I'm not asking only in terms of the gramage change which w which we see in the market, but, the, the number of SKUs has is that a big driver of, the growth or is it the, you know, similar kind the old, old portfolio SKUs which are driving and the new means, you know, how has been the growth if you can add some color on it, and what is the strategy behind, this, product expansion?

Speaker #2: So so, the core which were which we acquired, some of the lead products continue to drive the growth of the core, but we have expanded ourselves into multiple mo newer spaces and which includes newer pro bars, like, wafer bar which is a milk-based wafer bar.

Tarun Arora: The core which we acquired, some of the lead products continue to drive the growth of the core. We have expanded ourselves into multiple newer spaces which includes newer protein bars like wafer bar, which is a millet-based wafer bar. We have also launched Roots, which is a traditional ghee, jaggery, and dates. These are two sizable platforms in protein bars that we have launched in last four quarters. We have launched Korean Chips, Okra-rin flavored chips. We have launched RTDs, which we did not have a presence in. As we speak, we are also expanding our range on the Max Protein cookies. We do believe that each of the portfolios, while the core will continue to grow, we are expanding and reaching out to new consumers through wider range of products, which help us gain faster acceptance.

Speaker #2: We've also launched Roots, which is a tradition of ghee, jaggery, and dates. These are two sizable platforms in protein bars that we have launched in the last four quarters.

Speaker #2: We have launched, in chips—Korean chips, Korean-flavored chips. We have launched RTDs, which we did not have a presence in. And, as we speak, we are also expanding our range on the Max Protein cookies.

Speaker #2: So we do believe that each of the portfolios, while the core will continue to grow, we are expanding and reaching out to new consumers through a wider range of products.

Speaker #2: which helps us, you know, gain faster acceptance. So it's not just the original products, but new expanded portfolios helping us to grow.

Tarun Arora: Not just the original products, but new expanded portfolios helping us drive this growth.

Speaker #6: Okay. And I just wanted to understand, is there any plan to expand this in the B2B professional face cleansing market or will it remain?

Mayur Parkeria ): Okay. Sir, on Everyuth, just wanted to understand, is there any plan to expand this in the B2B professional face cleansing market or-

Mayur Parkeria: Okay. Sir, on Everyuth, just wanted to understand, is there any plan to expand this in the B2B professional face cleansing market or-

Tarun Arora: No.

Speaker #6: Okay. B2C.

Mayur Parkeria ): Okay. B2C.

Mayur Parkeria: Okay. B2C.

Speaker #2: Not right now. We remain focused on B2C as of now.

Tarun Arora: Not right now. We remain focused on B2C as of now.

Speaker #6: Okay. Okay. Thank you so much. Thank you, and wish you all the best.

Mayur Parkeria ): Okay. Thank you so much. Thank you, and wish you all the best.

Mayur Parkeria: Okay. Thank you so much. Thank you, and wish you all the best.

Speaker #2: Thank you.

Tarun Arora: Thank you.

Speaker #1: Thank you very much. The next question is from Kamble. Please go ahead.

Operator 2: Thank you very much. The next question is from the line of Aniket Kamble. Please go ahead.

Operator: Thank you very much. The next question is from the line of Aniket Kamble. Please go ahead.

Aniket Kamble: Yeah. Hi, team. A quick follow-up from my side. For this quarter, what will be our A&P spends as a percent of our overall sales?

Speaker #5: Yeah. Hi team, quick follow-up from my side. For this quarter, what will be our e-industries spend as a percent of our overall sales?

Speaker #5: Sorry, Aniket, could you repeat? What will be our percentage, or what will be our advertising spends as a percent of our overall sales?

Tarun Arora: Sorry, Aniket, could you repeat what will be our percentage?

Aniket Kamble: Advertising spends as a percent of our overall sales.

Speaker #2: So, at an overall reported level, our ANP as a percentage of total sales is at 18.2% for the quarter.

Tarun Arora: At an overall reported level, our A&P as a percentage of total sales is at 18.2% for the quarter.

Speaker #5: Okay.

Speaker #6: And that includes— that includes Comfort Click, because Comfort Click has a much higher percentage involved in this.

Aniket Kamble: Okay.

Tarun Arora: That includes Comfort Click, because Comfort Click has a much higher percentage involved in this.

Speaker #5: Okay. And the Lights for Life, has it increased over the past year?

Aniket Kamble: Okay. The like-for-like, has it increased over the past year?

Speaker #2: Like-for-like, it is similar to last year on the core business.

Tarun Arora: Like-for-like, it is similar to last year on the core business.

Speaker #5: Okay. And how are our digital spends?

Aniket Kamble: Okay. How are our digital spends?

Speaker #2: So digital spend as a percentage of overall investments is only shooting up because consumers are consuming a lot more digital media, and engagement is easier and sharper with digital media.

Tarun Arora: Digital spend as a percentage of overall investments is only shooting up because consumers are consuming a lot more of digital media, and engagements are easier and sharper with digital media. The share of spends is completely pivoting towards the digital space across platforms.

Speaker #2: So, the share of spends is completely pivoting towards the digital space across platforms.

Speaker #5: Okay. Okay. Thank you.

Aniket Kamble: Okay. Thank you.

Speaker #1: Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Operator 2: Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Operator: Thank you very much. That was the last question for today. I now hand the conference over to the management for closing remarks. Over to you.

Speaker #2: Thank you, everyone, for joining the call. We'll see you next quarter. Stay healthy and happy. Thank you.

Tarun Arora: Thank you everyone for joining the call. We'll see you next quarter. Stay healthy and happy. Thank you.

Operator 2: On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Zydus Wellness Ltd Earnings Call

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Zydus Wellness

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