Synopsis: A small-cap FMCG/Wellness stock continues to strengthen its position in India’s competitive market with leadership across nine major categories, new product launches, and an expanding global footprint. Despite short-term cost pressures, digital growth, global expansion, and strategic acquisition support its long-term growth outlook and reinforce its strong consumer brand portfolio.
India’s wellness and FMCG space is changing quickly, and one company is quietly becoming a strong leader across many daily-use categories, from sugar substitutes and energy drinks to skincare and modern nutrition. With top-selling products, steady new launches, and a growing presence in global markets, this player is building a healthy long-term momentum. For anyone tracking the rise of health-focused consumer brands, this is a stock you may want to keep an eye on.
About The Company
Zydus Wellness is a major Indian consumer company focused on health and wellness across its two key segments: Food & Nutrition and Personal Care. In the Food & Nutrition segment, Sugar Free provides a wide range of sugar substitutes, while I’Mlite blends sugar with stevia to deliver 50 percent fewer calories.
Complan, a protein-rich nutrition drink, supports growth and cognitive development and now includes specialised variants such as Nutrigro for toddlers, Immuno-Gro for immunity, and VieMax for adult nutrition. Glucon-D offers instant energy and hydration and is now also available in a ready-to-drink format.
Nutralite is a leader in cholesterol-free spreads and has expanded into dairy products like ghee and butter. Ritebite, including Ritebite Max Protein, caters to active consumers with its healthy snacks and protein bars.
In the Personal Care segment, Nycil helps combat sweat, odour, rashes, and prickly heat with its antibacterial formulation, while Everyuth offers nature-based skincare solutions. Zydus Wellness continues to focus on innovative, science-backed products that encourage healthier living. The company’s shares are currently trading at Rs. 426, with a market capitalization of Rs. 13,579 crore.
Sugarfree And 8 Other Market Leader Products
Zydus Wellness continues to hold strong leadership positions across several large FMCG categories in India. Its flagship brands such as Glucon-D, Complan, Sugar Free, Nycil, and Everyuth dominate their respective segments, backed by strong recall and deep distribution.
Glucon-D leads the glucose powder category with a market share of 58.7 percent, while Sugar Free remains the clear leader in sugar substitutes with a commanding 96.2 percent share. Nycil maintains its long-standing No. 1 position in prickly heat powder with a 32.9 percent share.
Everyuth further strengthens the company’s skincare portfolio with leadership in multiple sub-categories. It ranks No. 1 in scrubs with 48.5 percent share and No. 1 in peel-off masks with 76.6 percent. In the broader facial cleansing category, which includes scrubs, peel-off masks, face wash, and face masks, Everyuth stands at rank 5 with a 7.9 percent share. Meanwhile, Complan, one of the largest nutrition drink brands, operates in a competitive Rs. 6,800 crore category and holds a market rank of 4.
The company also strengthens its presence in emerging health and nutrition categories through brands such as Nutralite, RiteBite, and Max Protein. Nutralite leads the fat spreads segment with rank 1, while Max Protein dominates modern snacking categories including protein cookies, protein chips, and nutrition bars, holding the No. 1 position across all three. With leadership in both legacy and fast-growing wellness categories, Zydus Wellness continues to drive strong relevance, consumer trust, and long-term growth potential.
The latest additions to the portfolio include Nutralite Activ Peanut Butter, a plant-based offering available in several flavours to meet the rising consumer demand for healthy snacking. The company has also introduced the RiteBite millet wafer protein bar made from jowar, with each bar providing 10 grams of protein and containing no maida, no palm oil, and zero added sugar, offered in multiple flavours. Sugar Free Green has sustained its double-digit growth for the 18th consecutive quarter.
Everyuth has launched a new Anti-Pollution Scrub sachet. Meanwhile, the RiteBite Max Protein business has been fully integrated into the company’s wider distribution network and continues to progress as planned under its strategic growth roadmap.
Global Presence
Zydus Wellness has built a broad international footprint, with its products reaching consumers across a wide range of countries. The company is present in markets such as Bahrain, Bangladesh, Bhutan, Hong Kong, Kuwait, Lebanon, Maldives, Malaysia, the United Arab Emirates, Myanmar, Nepal, Oman, Qatar, Saudi Arabia, Sri Lanka, Taiwan, Nigeria, Kenya, Mauritius, Ethiopia, South Africa, Tanzania, Uganda, Zimbabwe, New Zealand, Australia, the United Kingdom, Germany, Spain, Italy, France, the Netherlands, Sweden, Denmark, Belgium, Ireland, Poland, and the United States of America.
This extensive global reach reflects the company’s continued efforts to build a strong overseas business. Zydus Wellness is actively expanding across key international markets, particularly in the United Kingdom, the European Union, and the United States, aiming to scale its brands, deepen market penetration, and reinforce its global presence through strategic growth initiatives.
Positive Tailwinds
During the quarter, consumption patterns were affected by an early and prolonged monsoon season, which softened demand in key seasonal categories. Despite this slowdown, the company’s non-seasonal portfolio showed strong resilience, helping stabilize overall business performance and maintain steady momentum across core segments. Commodity prices continued to move unevenly, with some inputs becoming more affordable while others stayed elevated, resulting in a mixed overall cost environment.
Quick commerce and e-commerce channels sustained their strong growth trajectory, reflecting the ongoing consumer shift toward digital buying. Tier 2 and Tier 3 cities are increasingly emerging as important growth drivers. The rollout of GST 2.0 caused temporary disruptions, especially within trade channels adjusting to the updated compliance requirements, but most of these short-term impacts have now settled. The company views this new phase of GST reforms as a positive and forward-looking development.
At present, over 85 percent of its domestic product portfolio falls under the 5 percent GST slab. Combined with revisions in direct tax rates and higher government spending, the reform is expected to improve product affordability, boost consumer demand, and further strengthen the value proposition of its brands.
Comfort Click Acquisition
During the quarter, the company completed the acquisition of Comfort Click Limited and its subsidiaries, further strengthening its presence in key international markets across the U.K., the European Union, and the U.S.A. This acquisition has expanded the company’s overseas digital ecosystem and widened its reach in the rapidly growing consumer healthcare space.
Comfort Click, through its brands WeightWorld, maxmedix and Animigo, is one of the fastest-growing digital consumer healthcare platforms in the Vitamins, Minerals and Supplements (VMS) category.
With strong brand equity, a loyal customer base, and Amazon ratings consistently above 4.6 across major European regions, the business generates a large share of its revenue from e-commerce and D2C channels. It is well placed to benefit from rising health consciousness and increasing emphasis on preventive healthcare. In the initial months, its post-acquisition performance has largely aligned with expectations.
The acquisition was financed through a low-cost bridge loan at a 5 percent interest rate, with the corresponding interest reflected in finance costs. The acquired brands are being amortized over a 15-year period, leading to a sequential rise in depreciation and amortization expenses during the quarter.
The Comfort Click acquisition significantly extends the international business footprint across Europe and North America, adding markets like the U.K., Germany, Spain, Italy, France, the Netherlands, Sweden, Denmark, Belgium, Ireland, Poland, and the United States. Together, the combined operations of Zydus Wellness and Comfort Click create a truly global network, enhancing cross-market synergies and expanding long-term growth opportunities.
Financial Snapshot – Q2FY26
Quarter-on-Quarter: Sales fell from Rs. 861 crore to Rs. 650 crore, a decline of 24.5 percent. Operating profit dropped from Rs. 156 crore to Rs. 23 crore, down 85.3 percent, while the operating profit margin reduced from 18 percent to 4 percent. Profit before tax fell from Rs. 145 crore to a loss of Rs. 51 crore. Net profit declined from Rs. 128 crore to a loss of Rs. 53 crore.
Year-on-Year: Sales increased from Rs. 493 crore to Rs. 650 crore, a growth of 31.8 percent. Operating profit rose from Rs. 20 crore to Rs. 23 crore, up 15 percent, with the operating profit margin steady at 4 percent. Profit before tax declined from Rs. 24 crore to a loss of Rs. 51 crore.. Net profit fell from Rs. 21 crore to a loss of Rs. 53 crore.
Exceptional items (expenses) for the quarter stood at Rs. 33 crore and include one-time costs linked to the Comfort Click acquisition, as well as expenses related to the voluntary liquidation of Naturell (India) Private Limited, undertaken to enable faster consolidation of its operations with Zydus Wellness Limited on a going-concern basis.
The Comfort Click acquisition is accretive to cash EPS when excluding these exceptional, one-off acquisition-related charges. Alongside its financial performance, the company continues to place strong emphasis on its environmental, social, and governance (ESG) commitments.
Conclusion
Zydus Wellness continues to strengthen its position as a leading wellness-focused FMCG company with dominant brands, category leadership, and a growing global footprint.
While short-term cost pressures and seasonal challenges have weighed on quarterly performance, the company’s strong brand equity, digital momentum, and strategic expansion through Comfort Click reinforce its long-term growth potential. With a diversified portfolio, rising international presence, and continued innovation across health and nutrition, Zydus Wellness remains well placed to benefit from India’s accelerating shift toward healthier consumer choices.
-Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
