Zydus Wellness Limited (ZYDUSWELL) AI Stock Analysis

• Market Cap: ₹131.86B
• Dividend Yield: 0.28%
• Average Volume (3M): 15.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 14.55%
• EPS Growth: -20.61%
• Country: IN
• Employees: 1,008
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.30
• Shares Outstanding: 318,160,700
• 10 Day Avg. Volume: 9,092
• 30 Day Avg. Volume: 15,161
• PEG Ratio: 0.21
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 6.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹575.00
• Price Target Upside: 35.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 9.25
• Revenue Forecast (FY): ₹38.89B

• Rating: 66 Neutral
• Price Target: ₹403.00 ▼(-5.15% Downside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

Zydus Wellness Limited's overall stock score is primarily driven by its strong financial performance, characterized by consistent revenue growth and a robust balance sheet. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio provides durable financial flexibility, reducing solvency risk and supporting capital allocation for R&D, marketing or M&A without excessive interest burden. This capital structure supports resilience across economic cycles and funds strategic initiatives.

Consistent revenue growth

Sustained top-line expansion indicates enduring product demand and effective go-to-market execution. Reliable revenue growth underpins scalable operating leverage, supports reinvestment in brands and distribution, and improves prospects for steady long-term cash generation.

Recognized brands and market position

A diversified portfolio of well-known wellness and personal-care brands creates durable competitive advantages via consumer loyalty, shelf space and pricing power. Brand equity and omnichannel distribution help sustain sales and protect margins over multiple years.

Negative Factors

Declining EPS growth

A large negative EPS growth rate signals pressure on profitability per share, which can constrain reinvestment, dividend capacity and investor confidence over the medium term. Persistent EPS declines may reflect margin, cost or one-off issues that weigh on long-term returns.

Gross margin compression

A falling gross margin suggests rising input costs or weakening pricing power. If sustained, margin erosion can undermine net profitability and limit the upside from revenue growth, forcing trade-offs between marketing spend, price increases or margin-sacrificing promotions.

Variability in free cash flow conversion

Although free cash flow grew, a declining FCF-to-net-income ratio indicates weaker cash conversion consistency. Over time this variability can constrain funding for capex, acquisitions or shareholder returns, and indicates working-capital or timing risks that need management focus.

Zydus Wellness Limited Business Overview & Revenue Model

Company Description

Zydus Wellness Limited develops, produces, markets, and distributes health and wellness products in India. It provides sugar substitute products under the Sugar Free Gold, Sugar Free Natura, and Sugar Free Green brands; milk-based health food drink under the Complan brand; glucose-based beverage under the Glucon D brand; and Sugarlite, a blended sugar coated with stevia. The company also offers a range of skincare products, such as soap-free face washes, face masks, scrubs, and cleansers under the Everyuth brand; prickly heat and cooling powder, and hand sanitizer under the Nycil brand; and probiotic butter spread, table spread, ghee, butter, cholesterol fat-free spread, mayonnaise, and chocolate spread under the Nutralite brand. In addition, it exports its products. The company was formerly known as Carnation Nutra Analogue Foods Limited and changed its name to Zydus Wellness Limited in January 2009. The company was founded in 1988 and is based in Ahmedabad, India. Zydus Wellness Limited is a subsidiary of Cadila Healthcare Limited.

How the Company Makes Money

Zydus Wellness Limited generates revenue through several key streams, primarily from the sale of its various health and wellness products. The company leverages its established brand reputation to capture market share in the growing health-conscious consumer segment. Revenue is significantly derived from retail sales across various channels, including supermarkets, pharmacies, and online platforms. Additionally, Zydus Wellness engages in strategic partnerships with retailers and distribution networks to enhance product visibility and accessibility. The company also invests in marketing and promotional activities to drive brand awareness and consumer engagement, further contributing to its sales growth. Overall, the combination of strong brand equity, diverse product offerings, and strategic market positioning underpins Zydus Wellness's revenue generation strategy.

Zydus Wellness Limited Financial Statement Overview

Summary

Zydus Wellness Limited presents a solid financial profile with consistent revenue growth, strong profit margins, and a robust balance sheet characterized by low leverage. The company’s cash flow generation is healthy, although there is room for improvement in cash flow management. Overall, the financial statements reflect a stable and growing company with a strong foundation for future growth.

Income Statement

Zydus Wellness Limited has shown consistent revenue growth over the years, with a notable 5.6% increase in the latest year. The company maintains healthy profit margins, with a gross profit margin of 39.75% and a net profit margin of 12.81% in the most recent year. EBIT and EBITDA margins are also strong, indicating efficient operations. However, the slight decline in gross profit margin compared to previous years suggests some pressure on cost management.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.033, indicating minimal leverage and financial risk. Return on equity is moderate at 6.12%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at a robust level, showcasing a solid capital structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Zydus Wellness Limited has demonstrated positive free cash flow growth, with a significant increase in free cash flow in the latest year. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, suggesting some variability in cash flow management. Overall, the cash flow position is strong, supporting operational and strategic flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.73B	27.09B	23.28B	22.55B	20.09B	18.67B
Gross Profit	13.52B	10.77B	8.87B	10.96B	7.41B	10.08B
EBITDA	3.58B	3.99B	3.08B	3.32B	3.55B	2.21B
Net Income	2.53B	3.47B	2.67B	3.10B	3.09B	1.19B
Balance Sheet
Total Assets	98.81B	64.42B	61.48B	58.33B	56.92B	56.66B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.29B	3.16B	1.08B	1.96B	2.52B
Total Debt	30.42B	1.88B	3.29B	2.97B	3.87B	5.50B
Total Liabilities	41.76B	7.70B	7.91B	7.11B	8.48B	10.99B
Stockholders Equity	57.06B	56.72B	53.58B	51.23B	48.44B	45.68B
Cash Flow
Free Cash Flow	235.00M	3.14B	2.18B	467.00M	1.61B	2.67B
Operating Cash Flow	931.00M	3.80B	2.46B	917.00M	2.37B	2.87B
Investing Cash Flow	-28.68B	-2.24B	-1.78B	-849.00M	-859.50M	-104.10M
Financing Cash Flow	28.01B	-1.86B	-257.00M	-1.39B	-2.34B	-2.16B

Zydus Wellness Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 424.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZYDUSWELL, the sentiment is Positive. The current price of 424.9 is above the 20-day moving average (MA) of 395.37, above the 50-day MA of 413.06, and below the 200-day MA of 429.10, indicating a neutral trend. The MACD of 1.85 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ZYDUSWELL.

Zydus Wellness Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINEORG	68 Neutral	₹131.03B	42.68	―	0.26%	5.73%	-7.74%
ZYDUSWELL	66 Neutral	₹131.86B	-90.62	―	0.28%	14.55%	-20.61%
PGIL	66 Neutral	₹68.60B	34.81	―	0.77%	24.93%	20.57%
BIKAJI	64 Neutral	₹153.41B	75.55	―	0.13%	11.04%	-26.83%
JYOTHYLAB	64 Neutral	₹76.42B	31.99	―	1.24%	1.62%	-7.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BECTORFOOD	61 Neutral	₹55.98B	46.45	―	0.45%	10.82%	-8.21%

Zydus Wellness Limited Corporate Events

Zydus Wellness Subsidiary Wins Interim Relief in ₹56 Crore GST Dispute

Zydus Wellness Limited has disclosed that its wholly owned subsidiary, Zydus Wellness Products Limited, has obtained ad-interim relief from the Gujarat High Court in connection with a disputed GST demand of ₹56.33 crore plus interest and penalty raised by the Directorate General of Goods and Services Tax Intelligence, Surat Zonal Unit, under the Central GST Act. The High Court has restrained further proceedings pursuant to the Order-in-Original dated September 30, 2025, which relates to a period before January 30, 2019; Zydus stated that any liability for this pre-acquisition period is fully indemnified by Heinz Italia S.P.A., limiting potential financial exposure for the group and providing clarity to stakeholders on the contingent nature of the tax claim.

Zydus Wellness Confirms SEBI-Compliant Dematerialisation of Equity Shares for Q3 FY2025-26

Zydus Wellness Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming the proper handling of equity share certificates received for dematerialisation. Based on certification from its registrar and transfer agent MUFG Intime India Private Limited, the company stated that all such physical share certificates, if any, were duly verified, mutilated, cancelled, and replaced with depository records, and that the corresponding securities continue to be listed on BSE and NSE, underscoring adherence to regulatory requirements and reinforcing confidence in its share transfer and dematerialisation processes for investors and market participants.

Zydus Wellness Closes Trading Window Ahead of Q3 FY26 Results

Zydus Wellness Limited has announced that its trading window will be closed from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ending December 31, 2025. The restriction, applicable to directors, designated persons and their immediate relatives, is in line with SEBI’s insider trading regulations and reflects the company’s compliance and governance framework ahead of its upcoming earnings announcement, for which the board meeting date will be communicated separately.