Zydus Wellness Limited has issued a clarification to BSE Limited regarding the recent significant increase in trading volume of its equity shares across exchanges. The response, dated January 1, 2026, addresses surveillance concerns raised by the stock exchange about unusual market activity.

Company's Official Response

In its communication to BSE, Zydus Wellness emphasized that it has maintained full regulatory compliance and transparency. The company stated that all necessary disclosures have been made pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Key Clarifications Provided

The company made several important clarifications in its response to the exchange:

• No undisclosed events: Zydus Wellness confirmed there are no undisclosed events or information, including impending announcements, that could influence share price or volume behavior
• Market-driven activity: The company believes the significant volume increase is purely market-driven and beyond its control or knowledge
• Regulatory compliance: All disclosures have been made in compliance with SEBI listing regulations and will continue to be made as required

Regulatory Context

The clarification comes in response to BSE's surveillance mechanism, which monitors unusual trading patterns and seeks explanations from companies when significant volume or price movements occur. This is a standard procedure under exchange surveillance protocols to ensure market integrity and investor protection.

Zydus Wellness has requested BSE to take the clarification on record, reaffirming its commitment to maintaining transparency and regulatory compliance in all its market-related communications.

Zydus Wellness Limited, a prominent player in the consumer products sector, has reported a mixed financial performance for the second quarter. The company's results reflect both growth in revenue and challenges in profitability.

Revenue Growth

Zydus Wellness saw a significant increase in its top line for Q2:

• Net sales rose by 31% to 6,429.00 million rupees, up from 4,907.00 million rupees in the same quarter of the previous year.

This robust growth in revenue indicates strong market demand for the company's products.

Profitability Challenges and Exceptional Costs

Despite the impressive revenue growth, Zydus Wellness faced headwinds in profitability:

• The company reported a net loss of 528.00 million rupees for Q2, compared to a profit of 209.00 million rupees in the same quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved to 230.00 million rupees from 196.00 million rupees year-over-year.
• However, the EBITDA margin declined to 3.54% from 3.98% in the previous year, indicating pressure on operational efficiency.
• Zydus Wellness reported exceptional costs of 342.00 million rupees in Q2 related to the acquisitions of Comfort Click Ltd and Naturell (India) Pvt Ltd, along with liquidation expenses.

Half-Year Performance

For the first half of the fiscal year, Zydus Wellness demonstrated resilience:

• Net sales for H1 grew by 12.8% to 15,006.00 million rupees, compared to 13,298.00 million rupees in H1 of the previous year.
• The company achieved a profit after tax of 751.00 million rupees for H1, although this represents a decrease from 1,686.00 million rupees in H1 of the previous year.

Key Factors Influencing Performance

Several factors contributed to the company's financial results:

1. Seasonal Impact: The early and extended monsoon affected sales in key seasonal categories.
2. GST 2.0 Implementation: The transition to GST 2.0 caused some business disruptions in Q2.
3. Acquisition Costs: The company incurred one-time expenses related to the acquisitions and liquidation.
4. Brand Performance:
   • Sugar Free maintained its category leadership with a 96.2% market share.
   • Everyuth led in scrubs and peel-off masks with 48.5% and 76.6% market shares respectively.
   • Glucon-D maintained its leadership with a 58.7% market share.

Strategic Moves

Zydus Wellness made significant strategic moves during the quarter:

• Acquired Comfort Click Limited and Naturell (India) Pvt Ltd, marking its entry into the Vitamins, Minerals, and Supplements (VMS) category and expanding its international presence.
• Launched new products including Nutralite Activ Peanut Butter and Millet Wafer Protein Bar, catering to growing consumer demand for healthy snacking options.

Management Commentary

Dr. Sharvil P. Patel, Chairman of Zydus Wellness, stated, "Our Q2 performance reflects the resilience of our business model in the face of seasonal challenges and regulatory changes. While we've seen strong top-line growth, we remain focused on improving profitability and executing our strategic initiatives to drive long-term value creation."

Conclusion

While Zydus Wellness faces near-term profitability challenges and has incurred significant exceptional costs, its strong revenue growth and strategic initiatives are noteworthy. The company's focus on innovation, international expansion, and strategic acquisitions may contribute to its future performance. Investors and analysts will likely monitor how Zydus Wellness navigates the current challenges, manages the integration of its new acquisitions, and capitalizes on its growth opportunities in the consumer products market.