Zydus Wellness Ltd (NSE: ZYDUSWELL) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Ganesh Nayak — Director
Tarun Arora — Chief Executive Officer
Umesh Parikh — Chief Financial Officer
Analysts:
Unidentified Participant
Dhiraj Mistry — Analyst
Tejas Shah — Analyst
Mayur Parkeria — Analyst
Nikhil Upadhyay — Analyst
Ajay Thakur — Analyst
Presentation:
operator
SA. SA. Foreign Ladies and gentlemen, good day and welcome to Zaidus Wellness Q1FY26 results conference call. As a reminder, all participant lines will be in lesson only mode and there will be an opportunity for you to ask questions after after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dhiraj Mistry. Thank you and over to you sir.
Dhiraj Mistry — Analyst
Thank you and good evening all. First of all I would like to. Thanks management of Zidus Wellness to give this opportunity to us from the management we have with us Mr. Ganesh Naik, Director, Mr. Tarun Arora CEO and whole time Director and Mr. Umesh Parekh, CFO over to you sir.
Tarun Arora — Chief Executive Officer
Good evening and welcome to the post results teleconference of Zydus Wellness Limited for quarter one financial year 202526 I have with me like Dheeraj mentioned, Mr. Ganesh Naik who is the director on the board Mr. Omesh Parikh, CFO in the call during the quarter, consumption trends highlighted a continued divergence across geographies. Rural markets sustained their growth leadership outpacing urban areas driven by strong performance in branded commodities, personal care and dairy segments, while seasonal categories faced headwinds due to a shorter summer and unseasonal rains. The non seasonal portfolio remained strong cushioning overall performance on the cost front.
Persistent input inflation is beginning to show signs of easing providing our optimism for margin recovery in the coming quarters. Meanwhile, the digital channels such as quick Commerce and E commerce continue to deliver strong growth. Tier 2 and Tier 3 cities are emerging as key growth drivers, positioning the business well for its next phase of expansion. The company reported a consolidated net sales growth of 2.2% amounting to INR 8,577 million rupees for the quarter, navigating through the challenges posed by early monsoon conditions which impacted seasonal brand performance. Encouragingly, excluding seasonal brands, the company delivered a strong double digit growth which includes ride bite, max protein business that is not in the base, hence reflecting underlying strength of its portfolio and balanced business model at the segment level.
The personal care segment grew 3.8% year on year for the quarter despite early monsoons impacting nicel brands and dampening the demand in weather sensitive categories. A healthy CAGR of 21.1% over quarter one of financial year 22 underscores the portfolio’s structural strength and long term potential. The food and nutrition segment recorded subdued year on year growth of 1.6% for the quarter as softer seasonal demand significantly impacted glucon d. Ongoing portfolio diversification and contributions from acquired business help mitigate the impact at the segment level. Importantly, the segment maintained a consistent CAGR of 7.3% over quarter one financial year 22, reinforcing its relevant and sustained growth momentum.
Organized rate saliency continued to improve reaching 30.9% in the quarter one financial year 26, up from 23.3% in quarter one financial year 25. Within this e commerce contributed 14.5% and Montreal 16.4%. Over the past two fiscal years FY24 and FY25, we have delivered a cumulative gross margin expansion of three hundred and sixty one basis points driven by proactive strategic hedging, a favorable product mix and a disciplined pricing actions. Despite the challenging inflationary backdrop that we had experienced in the current quarter, however, gross margins registered a marginal decline of 73 basis points at overall level. Nonetheless, majority of our brands continue to deliver strong gross margin expansion, underscoring the inherent strength of our portfolio.
The saliency of seasonal brands was temporarily impacted by shorter than usual summer and unseasonal rains. On The EBITDA front, company delivered a growth of 0.2% reaching reaching to rupees 15. 56 million for the quarter. At the PAT level, the decline of 13.4% was primarily driven by non cash items like amortization of intangible assets from acquired business and deferred tax impacts. During the quarter the company returned to a net cash positive position, strengthening its ability to participate in large projects, infrastructure development and automation initiatives aimed at building the business for the next phase of growth. With that, let me share some of the highlights of operation for the period gone by which will also cover category growth and market share numbers as per MAT June 2025 report of Nielsen.
On the personal care front, Eviouth consistently grew has shown a consistent growth that is led by sustained double digit performance driven by innovation, product excellence, strong distribution and customer centric experiences. Our superior offerings and targeted marketing have successfully expanded the user base year after year. Every youth leads key subsegments with a 48.7% share in scrubs which is a positive of 262.3 basis points year on year and 77.2% in peel off masks a drop of 56.4 basis points. Overall presence, the brand ranks fifth in facial cleansing with a 7.8% share up 88.8 basis points year on year, Niceville saw a temporary dip this quarter due to early monsoons, but maintained its number one position with a market share of 33.3% on the Glucon D front, Glucan D maintained its leadership in the glucose powder category with a market share of 58.9 at the MAT level.
The glucose powder category grew by 2.8% at the mat level, however the category declined for the quarter. Glucondi Activores, the electrolyte energy drink was rolled out across the broader national footprint performing as expected under the revised distribution strategy aligned with the weather driven demand patterns. On the compliant front, the nutrition drink category has reported a decline of 2.6% at the MAT level with the continued softness across key metrics. Brand currently holds a market share of 4.0% at the MIT level. On the sweetness front, Sugar Free brand continues to maintain its dominant position holding a commanding 96.1% market share in the sugar substitute category which has grown by 4.9% at the Met level.
Sugar Free Delight delivered encouraging results with deeper distribution and health conscious snacking trends driving the momentum. The Sugar Free green continued to outperform reflecting strong consumer affinity for natural alternatives and sustained volume led growth. Iamlite continues to promote healthier living through ongoing campaigns encouraging consumers to switch from regular sugar and cut calorie intake by half, supporting easier weight management and better daily choices. On the nucleite front, we continue to broaden the portfolio through focused innovation year after year growth momentum sustained by robust execution from focused B2B and B2C teams enabling deeper market penetration and operational efficiency.
On the right bright front post the successful acquisition of Natural India Private Limited in the later part of the previous year. The business continues to outperform the earlier estimates reinforcing our strategic intent and portfolio expansion strategy. Brand delivered robust growth during the quarter with ride by daily bars leading the performance and further strengthening the brand’s position in the high growth better for you snacking category. Our strategic priorities continue to focus on margin resilience, tech enabled efficiencies and sustainable growth through innovation and discipline expansion. Thank you. We will now begin the Q and A session over to the coordinator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Tejas Shah from Avenders Park Please go ahead.
Tejas Shah
Hi sir, thanks for the opportunity. So just the first I wanted to start with organic volume growth and value growth for the quarter would be. Hello. Hello.
Tarun Arora
Sorry, it is near to flattish. We don’t give specific but it’s near to flattish. The incremental has largely come from. Yeah, and excluding seasonal plants it is anyway double digit on its own as well.
Tejas Shah
Double digit is volume or value? Volume as well or only value.
Tarun Arora
The ongoing business without the acquisition without seasonal brands is both volume and value. If I add the seasonal brands back for organic growth it becomes flattish.
Tejas Shah
The second. I was not able to reconcile two statements on your presentation. We are still seeing that rural is doing better than urban but when I see our organized trade saliency it has actually gone from 23% to 30% I’m assuming that will be largely urban indexed. So just wanted to understand where am I missing the point?
Tarun Arora
So I think the point I made was initially at an overall level what we see as a direction when we read the market and we look at the data from the secondary markets and our own read of the market that rural markets are performing for us actually the significant movement this 23 to 30 is driven by also amalgamation of this new business which has substantial quick commerce e commerce business and therefore the share of that business has gone well, has shot up. But they are both right in that sense rural markets are performing consistently. We see better traction in the general trade from our small pop strata lower population towns more than the top metros.
But having said that in the metros the growth is largely driven by organized. The large towns are driven by organized trade and that’s I think a shift we all know about. And this number is shot up further because more than half our business of the acquired business is coming from E commerce and therefore the saliency shows and the third element driving this is also because both Glucondi Nycel are seasonal brands have a highest share coming from a rural and therefore the the mix also changes. So there will be that element also which changes. So one is data, the other is of the overall market trend that is playing up.
Tejas Shah
And sir, just wanted to understand. Yeah, very clear sir, so just wanted to understand as we enter this low saliency quarters now which are low impact on revenue and profitability. The seasonal pushback that we saw this quarter, does it carry forward in 2Q 3Q or it’s done and dusted in this quarter and 2Q 3Q are kind of clean slate from growth perspective.
Tarun Arora
So mostly it is Done and dusted. There is some numbers which flow into July because especially nice sale plays out here and a little bit of glucondy also post July August there is a very very little impact. So some bit you might find in Q3 but not significant. But after that there’s limited impact.
Tejas Shah
Perfect. And the last one if I may, looking at the rough start that we had for the year because of this unseasonal rains, where do we kind of land up on our margin expansion guidance for two years? I know that it is 18% but what part of that guidance we can achieve this year as well.
Tarun Arora
So I’ll tell you, I would look at what are the fundamental actions we need to take and there is an external part to it. First of all we need to drive through two or three actions which we have talked about. One is product by product gross margin expansion which is a tick mark. Yes, we are product by product, SQ by sq. We are focusing on growth margin expansion, some of which has already played out and will continue to play out this quarter. The gross margin reported is lower which is more of a product mix issue.
But my actions are in place in a normal year you will find that giving the results that we intend to. The second key action that we believe that will help us improve our EBITDA margins will be as we scale up some of the operating leverages playing out that also we are a quite cost conscious company and our growth intent is playing out very well. So seasonal is as we mentioned earlier also over a three to four year period continues to be double digit and therefore the basic thesis of higher growth leading to operating leverage will also play out a percentage here and there.
But the two year journey of enhancing my ebitda, I don’t think we are moving away from that basic view. To my mind you may find a quarter here and there but directionally we think we have taken right actions will play out.
Tejas Shah
Thanks, that’s all from my side and best wishes for coming quarters.
Tarun Arora
Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants to press star and one to ask a question. The next question is from the line of Mayur Parkeria from Wealth Managers India Private Limited. Please go ahead.
Mayur Parkeria
Good evening sir. Am I audible?
operator
Sir, your voice is too low.
Mayur Parkeria
Hello. Good evening. Am I audible now?
operator
Yes sir.
Mayur Parkeria
So first of all congratulations to the management for delivering double digit X off for the seasonal impact. And in an environment where consumption trends still remain relatively weaker overall, that’s a great thing to look at. So. So with that comment, just small two Questions from my side. One is actually you just partly mentioned that, but maybe, you know, to get a more clarity, irrespective of the seasonality and quarterly ups and downs, do we believe that in the last 25 entirely we grew almost 15% more than do we believe that structurally over the next two years we are in a double digit revenue growth cycle? One is at an overall industry level, especially for the products where we are and at a company level more firmly.
Tarun Arora
So I can talk about company level. For sure. We believe that we are on that path. So next two to three years we will continue on a structural double digit growth journey and most of our products will be doing that. One or two products may have some challenges, which you’ve talked in the past, some category led challenges, but largely most of our products will remain in that path.
Mayur Parkeria
Okay. And we were on our journey to increase our advertisement and advertisement spend structurally over the last two years on an annual basis. Can you give us an understanding how? Where should we see this number stabilizing from FY25 levels till in the next two to three years and will the operating leverage also come from there or we are still in the phase where percentage of sales, this will continue to slightly move up.
Tarun Arora
So in short to medium term it will remain at a similar level as FY25 because we also want to invest back increased gross margins into helping us increase our growth momentum. And it’s essential for us. But over a longer term, yes, we will see more efficiencies coming through, but advertisement is just one of the things. There are several other fixed expenses which come from other expenses, the overheads, people expenses, where we do see that operating leverages will play out even better.
Mayur Parkeria
Right, right, right. Okay. And just to along with this from a distribution setup, can you give us some qualitative numbers in terms of our direct reach? Where do we reach? And in the light of quick commerce becoming more and more dominant from a growth incremental growth perspective, do we see, do we still believe and see that direct reach and the traditional channels reach will become critical for our growth as we go ahead?
Tarun Arora
Yeah, so it’s an interesting and a very important question because these are things that we have to think given the way market is reorganizing itself. So from a very, very urban top city point of view, I think quick commerce is changing consumer habits significantly. And therefore we may or may not be necessarily driving our distribution expansion. But national level, our current direct reaches direct coverage is about 6.1, 6.2 lakh outlets. We are available as reported by Nielsen by 2.8 million outlets. Our wish list is to expand that 2.8 to 3.5 first and maybe eventually 4 million.
Assuming there’s no major restructuring of the market that happens towards that. We are looking at expanding another 80,000 outlets in this financial year. We still believe there’s enough room for expansion because we are building the categories. Our job is to being a market leader to expand the categories, drive penetration. Therefore we are still committed to drive a direct distribution and take it to hopefully by to about 7 lakh by the end of this financial year. And that’s something we’ll continue to do while building our capability both in E Commerce, quick commerce as well as Montreal.
So organized trade continues to increase but we continue to also invest in general trade because the smaller population, towns rural is still under service as far as the organized trade is concerned. And there therefore this will continue to play more important role.
Mayur Parkeria
That’s great to hear. Can I squeeze in one more question please?
Tarun Arora
Okay,
Mayur Parkeria
thank you. Thank you for that. Actually from the product in, from the product side, can we, can we get an understanding of where are we. What. What is our plan for the next 18 months in terms of new product, whether enhancements or changes? Because just like in automobile, we see there is the importance of new product, new product launches and you know, enhancements are also very critical whether you know, small changes or big changes. So in terms of number of products, if you can give some perspective, what are we planning over the next 18 months relative to FY25, what all we did.
Thank you.
Tarun Arora
Sure, I understood the question. So FY25 we had 12 launches. I’ll tell you, I don’t have a specific number to share over next 18 months. But I’ll tell you two things that will drive our strategy or our choices. One is that consumers expectations are changing at a much faster pace than most of us can handle. I had some industry leader from FMCG talk about smaller brands are no more cannot be taken lightly. The fact is that new brands are coming in and disrupting the space. So keeping our brands relevant for the future is extremely important.
So we will be constantly working on upgrading our existing products. Which of them will come up for launch in 18 months I cannot share. So that’s one fundamental we will do. Plus we have a few more products in our pipeline, in our innovation pipeline which will follow through some of which in the coming months since they are not in public space. I am not able to share, but we will continue to build it. So both NPD and relaunch of Our existing portfolio is very high on our agenda to stay ahead of the curve and grow ahead of the industry.
Mayur Parkeria
Okay, thank you. Wish you all the best. I’ll come in the queue if there is a thank you.
Tarun Arora
Thank you.
operator
Thank you. The next question is from the line of Nikhil Upadhyay from Simple. Please go ahead.
Nikhil Upadhyay
Yeah. Hi, good evening. And I think appreciation for the good results and the good performance the company has displayed this quarter. Sir, one question. As you mentioned that if we adjust for the summer heavy brands we’ve grown double digit. Can you talk about, can you rank which would be the brands which have grown fastest and specifically zooming on neutralite because if we’ve seen a lot of product launches and product innovation we’ve done in last one one and a half years, how are those new product launches playing out now and what proportion of revenue of total neutral light they would be today?
Tarun Arora
So I could say that from a last year’s base and a comparable base, I think three brands that stand out in terms of growth is our new acquisition, RiteBite, Max Protein and Averyouth followed by Nutlite. These three brands have had a significant growth driving our non seasonal brand growth agenda and pulling the numbers up substantially. For your second question on neutralite, specifically what is really driving our portfolio up? I think two or three things that is helping us. Our base business, our core which is fat spread, continues to drive the momentum. So that’s essential for us to get right and that continues to keep moving up.
Having said this, the new part of the portfolio where we want to be a fair dairy and spreads mayonnaise as well as our branded fat, if I were to say butter and ghee branded ones, that has really helped us also move it up. But that’s I think most part of the portfolio is playing out. Our chocolate spread has not kept to the promise but it’s still very small. But we’ve also not talked very big about it. But fat spread, value added dairy as well as mayonnaise all have played out as per expectation ahead of our budgets.
In fact, we’ve also launched cheese in the food service early days but early response looks good. So we continue to move forward on neutralite on a consistent basis.
operator
Sorry to interrupt. The current participant got disconnected. So we will move to the next question.
Tarun Arora
Maybe we can get him back. Yeah.
operator
The next question is from the line of Kenjal Mota from Banyan Tree Advisors. Please go ahead.
Unidentified Participant
Hi, thank you for the opportunity. Sir. I wanted to understand what is your long term view on the HFD category? The Nutrition category and how much does the south currently contribute to this business?
Tarun Arora
So I think it’s an interesting question. I think all players in HFD are grappling with this. But let me just put it like this. There are two or three parts which we need to keep in mind. First of all, HFD has long stood for nutrition. Now nutrition is something which today’s consumer is very concerned and tuned on to. Having said this, consumers relevance, I mean relevance of HFD as the single source of nutrition has died down and people are seeking various other ways of getting nutrition. And that’s why this category has come under pressure. People have gone on to several other formats, products, new age brands and traditional ways of getting nutrition.
And that’s really impacted this category. In my view it will in medium to long term still deliver a sustainable low digit, low single digit growth. I don’t know, that’s my view. Still there is good reasons for it. Only time will tell. And we do believe that done right by playing the right segments there is still room for growth and therefore we are still working on it. And some of our initiatives support that. And that’s why we have done slightly better than the category. Largely because of trying to differentiate ourselves by offering some superior nutrition and consistently pushing ourselves into new ways of working.
Having said this, I can’t share the specific share of business as we don’t so overall category is about 7,000 crore on a MAT basis and our market share is 4% though of course large part of categories also shifted to E commerce which is not reported. So I mean you could do your mathematics but this is some of the direction that we could help you with.
Unidentified Participant
We understand that you could not share the number of how much does south contributes currently but any direction on whether the contribution from south region has declined over the years and if so what are the reasons behind the scenes.
Tarun Arora
So incidentally I won’t say by south or north I think Tamil Nadu has is one of our in the south region is one of our key markets that has stayed consistent. For us overall at the category level it has come under pressure but for us it has remained quite consistent by our action. In fact we were more under pressure earlier years after acquisition but we have done rather well in last two to three years on sustaining that business. So
Unidentified Participant
sure, sure that makes sense. Thank you. And if I could pull out one bookkeeping question. So in our financials we report other marketing expenses which are categorized as a part of other expenses. If I were to look at that number it has grown Significantly in last five years that is at 30% CAGR. I was just trying to understand that how is it different from normal ant spent because it is categorized separately. If you could just help me understand this.
Tarun Arora
Are you pulling it out of the annual report? Is it?
Unidentified Participant
Yeah. Yes, yes. So it’s in the consolidated financials. If I were to look down into the other expenses head There is a separate line item called other marketing expenses.
Tarun Arora
So these are which are non traditional expenses, things like doctor Detailing and some CSB commission which are kind of marketing but not real marketing, advertising and marketing expenses but impact our business support. So some of those things get captured in those. Some go to market expenses may happen. So some of those things get captured out of this and therefore since we have increased our presence with doctor Detailing for sugar free and complan, some of those will look disproportionately high growth but may not be significant in absolute.
Unidentified Participant
Thank you. I’m a kazee of kinsel. Just had one question if I can ask. Sir, you subsumed some.
operator
Sorry to interrupt. Sorry to interrupt. Can you please be more louder?
Unidentified Participant
Yeah, yeah, sure. Am I audible now?
operator
Yes.
Unidentified Participant
Yeah. Hi. Thank you. And the question was sir, we subsumed the Sampriti brand into our into the Neutralite brand and now we have also launched Soap under Nitro some time back. So just wanted to understand your thought process behind brand extension especially in segments which are not closely related to the core segment. And again these new segments are more competitive than your existing segments. So how do you think about strengthening your brand there?
Tarun Arora
So these are two different things. First of all Soap Extension or Nicel is very tactical one and only directed at Middle east which is more opportunistic at a strategic level. In most of our largely our business is India centric. We haven’t done it and therefore there is no specific plan ready to share. As far as the soap and micel is concerned. As far as converging Sampriti brand into Neutralite is concerned, it was a very strategic call taken right at the time of acquisition. We had thought through it because we believe that Nutrilite is a large brand, it has huge potential and consumers don’t see it as dairy or non dairy but it actually meets all dairy and spreads requirement and can become one of our largest brands in future if we run it right.
And therefore this convergence of Tampriti into neutralite Dood Shakti has really helped the brand grow much bigger and much faster and also becomes more efficient from our investment perspective as well.
Unidentified Participant
Got it. Got it. And utilized to a Large extent was a B2B brand but do the consumers still retain or recollect the Nutrilite brand?
Tarun Arora
So our share from food service still remains much higher but the retail led to it is consistently expanding and we continue to believe that both these parts, both food service as well as B2C will continue to grow both and therefore make it a much larger brand.
Unidentified Participant
Thank you so much sir.
operator
Thank you. The next question is from the line of Nikhil Upadhyay from Simple. Please go ahead.
Nikhil Upadhyay
Yeah, hi, sorry I got dropped off. My second question actually was if you look at Max Protein and historical numbers, it was sustaining that 30 35% kind of CAGR growth coming into our fold. Have we been able to increase the rates or how is the distribution acceptance of the brand and is it sustaining that historical run rate of growth?
Tarun Arora
So I’ll go back to what I talked about when we acquired Maxprotein business right bet brand has historically grown more than 25% and we had said that we envisage at 25% plus over next four to five years to my I’m happy to share that our actual while we don’t give specific brand wise growth but happy to share that the current momentum over six months of actually seven months of acquisition is much much higher than what we had accounted for and it is gaining substantial acceptance across all channels. We have also launched or in the process of launching more products through this portfolio and we believe there is it has been strategically a good purchase for the business and we see a long term potential only enhancing ahead of what we had imagined at the time of acquisition.
Nikhil Upadhyay
Okay, I just have two questions. One is have we been able to put Max Protein into the GT channel now and how is the acceptance across the GT channel where we’ve placed it?
Tarun Arora
Max Protein does very well in gt. We have a significant share in general treat we are probably by far the largest brand in BARS in this space.
Nikhil Upadhyay
Okay, and last question. See this is a quarter when the summer portfolio used to always drive the margins. But even though and I could be wrong here, by my calculation it’s like our summer portfolio is down at least 10 to 15% but still the margins are sustained. Would you say that to a large extent with the growth of the other brands to some extent our profitability is now immune of the summer portfolio performing like even if they don’t perform the company can sustain the profitability because historically it used to be summer portfolio did not perform the margins used to take a hit.
So is it a good inference to make now?
Tarun Arora
I think it’s taken a lot of effort by the team to ensure that we are able to manage and overcome the challenge of summer brands. I am not imagining a situation that will be immune to seasonal brands not performing. It does impact us because they are a very critical part of our portfolio. Over the last four years, like I mentioned, we have seen a good double digit growth from both the brands and they add to our operating leverage. They add to our gross margins disproportionately. So very important. Yes, I think I would credit a great work by the Zadis Wellness team in managing a tough environment.
But yes, the team has really come up to the challenge and handled it. But immune to seasonal impacts? Not yet.
Nikhil Upadhyay
Sure, thanks. I’ll come back in the chat.
operator
Thank you. The next question is from the line of Ajay Thakur from Anandrati Securities. Please go ahead.
Ajay Thakur
Hi sir, thanks for taking the question. Just wanted to check on the breakup between Ever youth and Nice years, how it would have panned out given the fact that nicely it’s more summer centric so we would obviously have seen some decline. Maybe you can just specify, if not call it quantitatively but if more on qualitative basis the growth for NICA and also you can also highlight the growth for every youth in the same way.
Tarun Arora
I think while we do not like you rightly also figured out we do not share brand specific numbers. This is one of the few exceptional quarters where we have struggled on Nice Hill because of the sustained monsoons. Otherwise historically even in difficult seasons also Nicel does manage to do well. So obviously that shows how deep and how long sustained the rainy season has been and impacted the overall seasonal impact. Having said this, every youth has had a phenomenal, continued a phenomenal run that it has had and we continue to be very excited about opportunities that every youth has created for our growth.
So that’s all I can share at this.
Ajay Thakur
So would it be fair to say that Ever youth growth momentum which was there or the similar kind of a growth momentum that we had seen last year is kind of maintained even in Q1? Will that be a fair statement?
Tarun Arora
Yeah, momentum has continued. Absolutely.
Ajay Thakur
Okay. And and you had alluded to cheese, you know, segment being entered in the food services domain, how big this segment would be and and who would be the players over here if you can just you know, give some more details in terms of what kind of opportunity lies ahead and can it be as big as maybe something like a margin for us in the B2B?
Tarun Arora
We are early days into it. Look our biggest part on food service is still fat spreads. We’ve got into mayonnaise cheese’s early days. We’ve just done few months of numbers, so I cannot say. But yeah, potentially it could. I mean, it can because cheese is a segment is so large it could catch up with our margarine fat spread kind of business. But that’s a long way off. It’s a lot of hard work for the team to work on, but, yes, it’s promising and it also strengthens our Nutlite Dur Shakti platform, and the initial acceptance has been very good, so.