Zydus Wellness Limited , a leading consumer goods company, held its 31st Annual General Meeting (AGM) on July 30, 2025, where shareholders approved several key resolutions, including a 1:5 stock split. The company also released its financial results for the first quarter, showcasing robust performance despite challenging market conditions.

Stock Split and Capital Structure Changes

Shareholders approved the sub-division of the existing equity shares of the company. Each share with a face value of ₹10 will be split into five shares with a face value of ₹2. This move is expected to enhance the stock's accessibility and potentially boost retail investor participation. The record date for the split will be announced separately, with the process expected to be completed within two months.

The AGM also approved the alteration of the company's Memorandum of Association to reflect the new capital structure. Post-split, the authorized share capital will remain at ₹100 crores, but will be divided into 50 crore shares of ₹2 each.

Q1 Financial Highlights

For the quarter ended June 30, 2025, Zydus Wellness reported:

• Consolidated net sales of ₹8,577.00 million, up 2.2% year-on-year
• Net profit of ₹1,279.00 million
• EBITDA of ₹1,556.00 million

The company's performance was particularly noteworthy given the unseasonal rains that impacted sales of seasonal products.

Market Position and Brand Performance

Zydus Wellness maintained its leadership in key categories:

The company reported strong growth in its e-commerce and modern trade channels, with organized trade saliency improving to 30.9% in Q1, up from 23.3% in the same quarter of the previous year.

Other Key Developments

1. Appointment of Auditors: The AGM approved the re-appointment of Mukesh M. Shah & Company as Statutory Auditors for a second term of five consecutive years.

2. Secretarial Auditors: Hitesh Buch & Associates were appointed as Secretarial Auditors for a five-year term starting from FY 2025-26.

3. International Business: The company reported continued momentum in its international operations, with plans to increase international revenue contribution to 8-10% over the next 4-5 years.

4. Product Portfolio: Zydus Wellness expanded its product range, particularly noting the strong performance of RiteBite Max Protein Daily Bars following the acquisition of Naturell (India) Private Limited.

5. Financial Position: The company returned to a net cash positive position during the quarter, enhancing its capacity for future investments in large projects, infrastructure, and automation.

Dr. Sharvil P. Patel, Chairman of Zydus Wellness, commented on the results, stating, "Despite challenging market conditions and unseasonal weather patterns affecting some of our seasonal products, Zydus Wellness has delivered a resilient performance in Q1. The approved stock split reflects our commitment to enhancing shareholder value and improving stock liquidity. We remain focused on innovation, expanding our distribution network, and strengthening our market position across key categories."

As Zydus Wellness implements these strategic decisions and navigates the evolving market landscape, investors and industry observers will be keenly watching the company's performance in the coming quarters.

Zydus Wellness , a leading consumer goods company, has reported a mixed set of financial results for the first quarter, alongside a significant legal development for its wholly-owned subsidiary.

Financial Performance

Zydus Wellness announced its consolidated financial results for the quarter, revealing a decline in net profit despite an increase in revenue. The company's consolidated net profit stood at ₹1.28 billion, down from ₹1.47 billion in the same period last year, marking a decrease of approximately 13%.

On a more positive note, the company's revenue saw a modest increase, rising to ₹8.58 billion from ₹8.39 billion year-over-year, representing a growth of about 2.3%.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a slight improvement, increasing to ₹1.56 billion from ₹1.55 billion in the previous year. However, the EBITDA margin compressed to 18.10% from 18.47% year-over-year, indicating some pressure on profitability.

Here's a summary of the key financial metrics:

Legal Update

In a separate development, Zydus Wellness Limited has reported a significant legal outcome concerning its wholly-owned subsidiary, Zydus Wellness Products Limited (ZWPL). The company disclosed that a Special Leave Petition (SLP) filed by the Union of India and Others against ZWPL in the Supreme Court has been dismissed.

The SLP was related to a dispute over budgetary support under the Goods and Service Tax Regime. The case stemmed from the alleged arbitrary and unilateral denial of budgetary support to ZWPL following its conversion from a partnership firm to a company.

The dismissal of the SLP by the Supreme Court marks the conclusion of a legal process that began with earlier proceedings in the High Court of Sikkim. This decision upholds the previous ruling in favor of ZWPL, potentially securing its position regarding the disputed budgetary support.

This legal victory could have positive implications for ZWPL and, by extension, Zydus Wellness Limited, although the full impact remains to be seen in the coming quarters.

As Zydus Wellness navigates through a challenging economic environment, as evidenced by its mixed financial results, the favorable legal outcome for its subsidiary provides a silver lining. Investors and industry observers will be keen to see how these developments influence the company's performance and strategies in the future.