Zydus Wellness Ltd (NSE: ZYDUSWELL) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Tarun Arora — Chief Executive Officer
Analysts:
Unidentified Participant
Ashutosh Joytiraditya — Analyst
Tejas Shah — Analyst
Mayur Parkeria — Analyst
Kinjan Mota — Analyst
Naveen Trivedi — Analyst
Sandeep Abhange — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Zidus Wellness Q3FY26 earnings conference call hosted by ICICI Security. As a reminder all participants line will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashutosh Jyoti Raditya from ICICI securities Limited. Thank you and over to you.
Ashutosh Joytiraditya — Analyst
Thank you Ikra hello and good afternoon everyone present on the call. I on behalf of ICICI securities welcome you on Citus Wellness Limited’s 3Q FY26 earnings call. I would like to thank the management to give this opportunity of hosting the call from the management. We have with us Mr. Tarun Arora, CEO and whole time director and Mr. Umesh Parikh, CFO. I now hand the call over to the management for opening remarks post which we will open the floor for Q and A session. Thank you and over to you sir.
Tarun Arora — Chief Executive Officer
Hello Good evening. Hello good evening and welcome to the post Results teleconference of Zydus Wellness Limited for Quarter 3 Financial Year 202526 Like Ashutosh mentioned, I have with me Mr. Omesh Parekh who is the CFO on the call from our side. During the quarter, consumption trends remained steady led by sustained recovery in rural demand which continued to outpace the gradual improvement in urban markets. Commodity input costs exhibited divergent pricing trends across categories. Structural growth drivers remain intact with quick commerce and E commerce continuing to scale the strong momentum. During the quarter, we continue to strengthen our portfolio and platform for sustained growth through targeted innovations and geographic expansion.
Nutrilite Professional expanded its offering with the launch of Cheesy Delight and Slim Mayonnaise variants, enhancing portfolio, addressing evolving taste preferences and enabling incremental growth across all food service channels. On the Comfort click business, it deepened its portfolio with the launch of four adult gummies variants, one Probiotic Gummies variant for kids and Pure Himalayan Shilajit Resin, reinforcing its position in high growth wellness categories. Additionally, the Weight World brand advanced its European expansion by entering Poland, Finland and Portugal, strengthening comfort clicks, regional footprint and unlocking access to fast growing wellness markets. In Europe, Ryebite Max Protein expanded into two additional international markets taking its presence to nine countries within the first year.
The recently launched wafer bar continues to contribute to category growth and market expansion within India. Zedus Wellness initiated marketing and distribution for the cuticular brand in the organized channel. The brand is number one doctor prescribed in the hair covering space and is strengthening the company’s focus on functional skin and hair care. Coming to Company’s Financial Performance net sales for quarter three financial year 2026 registered growth of 113.7% within this Food and Nutrition segment delivered growth of 134% while Personal Care segment declined by 1.4% during the quarter volumes for quarter three financial year 2026 excluding the newly acquired Comfort Click, business delivered double digit growth reflecting underlying demand momentum on a year to date basis.
Financial year 26 excluding comfort click and seasonal brands recorded strong growth of double digit in the high teens range supported by mid teen volume growth on a like to like basis. Ride by business doubled its legacy performance and exceeded internal projections. The Comfort Click continues to perform in line with expectations. Most brands recorded gross margin expansion underscoring the strength of our portfolio with the improvement further supported by the newly acquired brands. On the raw material front except for milk, other key inputs remained largely under control ahead of the upcoming season. Other operating income declined year on year due to GST.
Budgetary support of INR 90 million recognized in Q3 financial year 25 in the prior year on a consolidated basis, the Company recorded EBITDA of INR610 million representing a quarter year on year growth of 312.2%. EBITDA margin expanded to 6.3% up from 3.2% in the previous year. Key Growth Drivers so key drivers impacting the movement of EBITDA to PBT for Q3 and YTD FY26 include the acquisition was funded through a low cost Bridge loan at 5% with a related interest expense reflected under finance costs amounting to approximately INR 371 million. For the quarter three amortization of acquired brands resulted in high depreciation and amortization charges about INR472 million rupees for the quarter three exceptional items primarily represent one time impacts arising from the implementation of new Labor Code.
Acquisition related costs and expense associated with liquidation of Natural India Private Limited, a subsidiary of the Company on a going concern basis. Importantly, Comfort Click acquisition remains cash EPS accretive even after accounting for interest and tax. The net loss including exceptional items and non Cash amortization is INR 399 million. The adjusted net loss excluding exceptional item is INR 333 million. During the quarter, Company further strengthened its organizational capabilities and culture. The Company was certified as a great place to work for the fourth consecutive year reflecting its continued commitment to talent development, employee engagement and a workplace excellence.
Brand performance and market share relevance are detailed in the investor presentation. Notably, Complain maintained its fourth ranked market share position going forward. Building on the strong brand equity, we plan to reframe compliant’s participation in the nutrition space with a set of relaunches and new product introductions to be more relevant for contemporary need states. We are also expanding its celebrity led outreach by partnering with emerging 14 year old cricket sensation Weber Suryavanshi to connect with younger audiences. Every youth continued to lead in the niche subsegments delivering double digit growth in YTD FY26 the tan removal segment sustained strong growth further enhancing brand saliency.
Within the sweetener portfolio. Market share expanded by 80 basis points as per Met December 2025 report of Nielsen and Acubia, while Sugar free green delivered 19th consecutive quarter of double digit growth. Sugar Free Delight cookies have now been extended into multiple markets and the entire Delight range continues to witness strong growth. Netralight continued to broaden the portfolio through focused innovation supported by strong execution from dedicated B2B and B2C teams. The brand delivered double digit growth with a six year CAGR driven by consistent performance across the portfolio. One year post acquisition, the Rite Bite Max protein business continues to significantly outperform its internal expectations across both value and volumetrics.
The brand retains its leadership position in protein snacking with ebitda improving from base event at acquisition to levels approaching double digit margins supported by innovation integration, synergies, scale benefits and enhanced operational efficiencies. We are focusing on delivering innovative products, advancing strategic initiatives and leveraging AI powered creatives and data driven decision making to enhance product experience, expand our consumer base and drive sustainable long term growth. In addition, upcoming new product developments, geographic market expansion and seasonal opportunities are anticipated to provide incremental growth momentum through calendar year 2026. Thank you and now we will begin the Q and A session over to the coordinator.
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 touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Avendus Park Institutional Equities. Please go ahead.
Tejas Shah — Analyst
Hi, thanks for the opportunity. Am I audible? Hello?
Tarun Arora — Chief Executive Officer
Yes. Yes. Clearly audible.
Tejas Shah — Analyst
Yes. Thanks. So Corset 3GL jumped to gross margin jumped to 63%. So just wanted to know is this new normal or a seasonal peak? Because specifically on Comfort Click are there any seasonality in margins at gross level and should we take this GM as a baseline margin ahead for the combined portfolio?
Tarun Arora — Chief Executive Officer
Yes. So Tejas, the gross margin jumped because of combination of the business, mainly the Comfort Click business coming in for the whole quarter and therefore it has jumped to where it is where you can see it right now.
Tejas Shah — Analyst
They operate at a higher gross margin level. Therefore the mix has been. But that’s why we explained individually each of the product has improved gross margins. But typically because of the mix you would have seen that our quarter four quarter one operated higher margins. This quarter the whole mix has got lifted further because Comfort Click operates at a much higher level.
Tarun Arora — Chief Executive Officer
So it’s basically a business mix this time.
Tejas Shah — Analyst
Yeah, yeah. So definitely ComfortClick is margin accretive. So just wanted to understand henceforth how should we kind of think about or forecast this particular line item? Because without not very conducive seasonality for our core portfolio, the margins have actually expanded handsomely. So just wanted to know what is. The baseline number on annual basis, not seasonality. Keeping aside, how should we think about this number going ahead?
Tarun Arora — Chief Executive Officer
So keeping aside the seasonality on an annualized basis, you can assume it about 66, 67% on a consolidated basis on an annualized basis.
Tejas Shah — Analyst
Okay, okay, pretty helpful. And second, the flow through of the same seems to be slightly low, though we have done reasonably well on yoy basis on EBITDA margin. But other expenses and A and P also seems to be higher. See what essentially I’m trying to understand is how to think about comfort clicks, the whole cost architect in terms of is there any seasonality which plays out in 3Q or this is new normal and then this is how it should play out going ahead irrespective of the season for at least Comfort Click portfolio.
Tarun Arora — Chief Executive Officer
This is the new normal because I mean the increase in advertisement expenses is largely because Comfort Click operates at certain expenses which are variable in nature due to high marketing spends which are linked to digital marketing that they do and that’s in sync with their business scale. So this would be a new normal and this is a full quarter view how it will shape up and chip.
Tejas Shah — Analyst
How to forecast or think about then sustainable EBITDA margins or aspirational EBITDA margins for next two years on annual basis, not quarterly.
Tarun Arora — Chief Executive Officer
Yes. So Anwal, I think we remain steadfast on two parts. If I were to break and break even, I mean break it down for you, I think Comfort Click. We are looking at continued growth of top line and good double digits as we have mentioned and hopefully with that business operating between 14/ kind of EBITDA margins, our base business, we are where it was and we are looking at taking it to 16, 17 or 18% levels, which is work in progress and therefore the mix will be slightly higher than that over next one or two years and it will be again a function of how the business mix shapes up.
That’s how we are looking at it.
Tejas Shah — Analyst
Okay. And sir, growth on Comfort Click, is it largely as of now penetrating the existing markets or we have added new geographies? But when you see double digit growth, what would be the key drivers for that going ahead?
Tarun Arora — Chief Executive Officer
So let me just break it down into two or three parts. I think the big reliance will remain on growing the existing markets because there is enough room to grow where their focus is within Europe to grow more reliably increasing their share of D2C performance where they are anyway. Amazon will continue, the marketplaces will grow, but they’re wanting the mix to shift more towards D2C. They’ve entered new markets still very small but promising, which is these Poland, Finland, etc. Us also still very small. So largely the whole growth is right now relying on the core markets and organic growth from that point of view, like for like growth where they’re relying more on D2C which is also helping them grow.
They’re also launching new products and building around their existing portfolio to build. May take some time for some large market like us to shape up if it works. But it’s a ball in the air which we believe has a potential. But big belief is that existing markets will expand as we move forward.
Tejas Shah — Analyst
Other lever which is working for us, which is Rite Bite, is it largely as of now distribution led because I’m assuming it must be under index versus our overall potential. Or is it both that we are seeing product expansion also and distribution expansion? Both working together?
Tarun Arora — Chief Executive Officer
Everything actually. So we are seeing substantial growth within the platforms you’ve been existing. We have existed in Q Commerce and E commerce. We are seeing distribution expansion. We are seeing more sell through the existing outlets. We have added more products which have expanded like we mentioned wafer bars and we just launched RTD as we speak. So we are rolling out more products, we are reaching out more outlets. This is not going to follow our overall distribution because that’s much larger. This is focused sharp distribution while available in 4050 cities, but top 10 cities contribute disproportionately top outlets contribute disproportionately so it is more sharp targeted weighted distribution quality of distribution presence rather than just numbers which we are building on and plus E commerce and more institutions and more consumption points.
So it’s a very different approach and we have a dedicated team to build on it.
Tejas Shah — Analyst
And the last repeating my request earlier request if we can improve our segmental disclosure it will help us to track because the portfolio is getting more complex so it will help us to track it more effectively and the engagement will be much more effective.
Tarun Arora — Chief Executive Officer
No, no, your point is noted Tejas. We are aware of it. So over next few months by end of the year we’ll come back and work on some of these things so that we can give you a better visibility. We’ve improved in the past but this whole piece has come up in a certain way. So we will look at helping you guys to be able to understand this better. Thanks Anand. All the best for coming quarters.
Tejas Shah — Analyst
Thank you.
operator
Thank you. The next question is from the line of Jamin from Ardeco Asset Management. Please go ahead.
Unidentified Participant
Thank you so much for the opportunity sir. And on the right by while I mean your top line momentum for your right by looks very strong. Did you just any share how your repeat purchase or a cross SKU head up front I mean that trends are evolving for the max floating franchisee so how does I mean the retention compare to your pre acquisition labor and any specific levers I mean are proving most effective in driving repeat behavior.
Tarun Arora — Chief Executive Officer
While I don’t have a specific data to share but I can tell you that repeat purchase rates are only getting better stronger and we’ve seen both online as well as even at the I mean I won’t have the consumer data at the for the general trade but the store data shows us stronger repeat purchase rates more sell through within the outlets while we are also expanding outlets every month we are sequentially expanding the outlets which are covered and selling more to the same outlets and we’re seeing our repeat purchase rates getting better. I think our focus has been that we have I mean it’s a positive spiral where the brand where there is a tailwind and business is going better and we have also increased our investments and we are getting operating leverage which is increasing our margins and we are investing back so it’s a positive spiral.
We have worked so better distribution, better investment on the brand is leading to better throughputs and our innovation engine is also playing out so we are seeing a good repeat purchase rates on the maxpertin business.
Unidentified Participant
Got it sir. And so on Comfort click. I mean we understand key pillar for your international strategy, however, I mean the finest acquisition there has been very limited public disclosure of operating on the unit economics KPI and it is becoming a little challenging to understand how to go to fraction or how the integration process are going on. So you can just help us to understand any core performance metrics that you track internally and how those metrics, I mean outperforming your initial course acquisition assumption.
Tarun Arora — Chief Executive Officer
So I think one of course we look at, I mean I’ll give you two or three factors that we are tracking at a high level which may be helpful to you. We will work out a more comprehensive thing like I mentioned to the other earlier speaker as well which will come by the end of the year to help you understand. But at a high level we are looking at three or four metrics. We look at country by country performance, especially the top five six countries like uk, Germany, France, Italy, Spain which are the top significant business contributing markets and each one of their growth.
We look at it while we may not be able to give you specifics because of the confidentiality, but we are clearly looking at that and maybe we’ll figure out a metric for it. We’ve seen a good traction across this Second metrics we are looking at is marketplace performance and a T2C performance. So we have seen D2C performance has been ahead of the plans while marketplace has been in line with largely what we were expecting. One or two small hiccups but largely it’s all sorted. But D2C has been rather well and it falls also in line with the strategy because you own the consumers, you have a long term value with the consumers and you are able to throughput better.
So we are seeing a good D2C performance. The third may be a repeat purchase rate while we do not publish, but I can share with you, we have seen above 50 percentage repeat purchase rate on marketplaces which is very very healthy. There are only few brands that we have seen seeing a repeat purchase rates of more than 50% so clearly we are among the stronger brands. Fourth could be in terms of the brand ratings and across marketplaces where we are above 4.6 on 5 in across all the markets. The next metrics that we look at is our market shares within the markets we operate which is typically 8 to 10% which gives us enough room for growth across these early days to look at new markets because they are very very small.
So these are some of the metrics that we are looking at. The other is the investment metrics early days but for you to share. But we’ll you know we’ll be able to keep tracking that as well that are because it’s a variable structure in I mean structure of P and L given very digital business. So a lot of investments happen on the bottom of the funnel. They have started investing in the middle of the funnel including like I mentioned in the probably in the last call also some Wimbledon led investments and some other middle funnel investments.
So we’re looking at the quality of investments as well in terms of advertising and other marketing led investments. So overall I think these are the broad metrics that we are looking at apart from growth and high level numbers that we will look at some of these things. We’ll see how we can share with you in case you guys have any other questions. Unfortunately, unlike Indian businesses a lot of this data is in public space and and you guys can pick it up more easily. We’ll figure out a way to help you understand this business better.
Unidentified Participant
Sure sir. And if I ask for one more question, I mean as you, I mean already, I mean expand three European market. So has the management, I mean existing management of the company have begun a mandate to follow your multi country trade force approach or I mean are you focusing on deepening the existing market?
Tarun Arora — Chief Executive Officer
Sorry, I didn’t understand basically what the existing management of Comfort Click and they work very closely with us. Our task is if I were to put it in strategic terms first is to grow existing markets in marketplaces. We are 8 to 10% market share. There is enough room to grow to own the customers better in terms of our loyalty and long term value. We are looking at improving our D2C the other is grow new markets which includes us some of the markets like Poland, Finland we mentioned or UAE which we are also expanding into. Third is within the brands are significant dependences on weight World which is where we have a large presence.
We’re also looking at expanding Animigo which is the animal pet care which we have relaunched which is work in progress. It will take some time to build up and then new products within the weight world and Animiko which you’re doing so and these are aligned initiatives and they are you know tracked on a monthly basis with the management there.
Unidentified Participant
`Got it sir, got it. That’s it from my side. Thank you so much.
operator
Thank you. The next question is from the line of Mayur Parkarya from Wealth Managers India Private Limited. Please go ahead.
Mayur Parkeria — Analyst
Good evening sir and thank you for taking my questions. So one is a slightly clarification understanding on the backdrop of the remarks we have in the presentation and your initial remarks. Normally December and September quarter we understand because of seasonality is a low margin business. And last two years we have been in the region of three kind of in these two quarters. I was saying. So that is about the base business. The base business excluding comfort click. You mentioned that volume growth has been also double digits. But when we look at the mid teens of Comfort click EBITDA margins but the overall consolidated entity is around 6% today, is it that the base business excluding comfort click and right bite would have been even lower than the previous year? Is just a clarification if I just wanted to understand sir.
Tarun Arora — Chief Executive Officer
Yes, it would have been lower. There are two or three anchors in it. One of the points I also made in my speech was also There’s a almost 90 million GST which was budgeting support which was in the last quarter and some of the additional expenses in terms of investing in the additional people field that we have created. So some of those expenses have impacted the margin. So it is therefore lower.
Mayur Parkeria — Analyst
But then you think this is a yearly situation because our whole understand while it’s a quarter the whole understanding was we were moving from 13 14% on the base business to 16 17%. And you also mentioned that we are looking forward to that. So every quarter also will have some improvement broadly. So will it be fair to say that this was a quarter which one should not read too much and the longest can remains of improving margins in the next two years to 16 17% on the base business.
Tarun Arora — Chief Executive Officer
So typically and without comfort lake if you look at it margins are so thin like 10, 15 crores. You, you know you take any 5 crores, 8 crore spent it just moves the margin by 30, 40%. So these quarters I would say either we’ll be as a management will be held back in our long term actions if we were overprotective about this. So some yeah, annually I don’t think there is any major impact from our actions. And some of these actions, despite all. These investments which you are mentioning, we are in a position to say that we will be in in 17% range. In two years time. Yeah, they will not have any impact. So some of these calls you take, you not putting protecting this quarter, you are more focused on how do we build the business from a next quarter a few quarters forward. So that’s how I would read it. Nothing beyond that.
Mayur Parkeria — Analyst
Okay. Sir, is the ever youth growth in this quarter has been below our expectation or below the historical numbers. It looks like because the segment is negative. I understand that we have other products seasonally which was weak but is also ever youth anything to you know would you like to add any color that is there any difference in trend line growths which we are seeing over there or is it in line with the previous one or is it just because of Nice Hill which must have impacted it?
Tarun Arora — Chief Executive Officer
I think largely it’s Nicel which has impacted but every youth has also been lower. But I think I will be more worried from a more medium and long term. And even if we look at YTD we are in good double digit growth. A quarter here and there will not matter because the underlying trends remain consistent. Our optics are building up. So some of those things can happen. But yes it is less than within the quarter, less than what I would like it to be. But that’s okay. Some of those things happen. If I look at over last year for five to six years we’ve seen a very consistent performance review but there have been quarters one off like this earlier also where it gets impacted but sometimes it is trade sentiment something or the nothing much to read about.
We are steadfast on that.
Mayur Parkeria — Analyst
So last question a little longish and again it’s just while we may think you know like a modeling question but you know just trying to understand a very long term addressable market from a comfort click and I understand you would share more in this understanding in the next quarter for us to look at long term understanding but just you know shoot. You know Moonshot in terms of our base business is almost quite large compared to the comfort click in the current position. While we understand that the quarterly run rates has started to come comment but do you think that in three years time comfortably given the high growth rates at which it operates can be bigger than the entity, our standalone entity, Indian entity.
Is it possible given the growth rate just as a very broad again not holding on the projection in that sense but as a is the addressable market long enough or do we think that we can be that business that top line can be you know larger than where we operate currently in three to.
Tarun Arora — Chief Executive Officer
Four years time anything is possible because the market is large enough. So if you’re saying is it possible. Yes. Will it be hard to say right now I would say analyzed because we published pre acquisition numbers. If you look at it, our estimate is almost 1/3 of our business is international which is largely led by Comfort Click and little bit of our existing non comfort click international business. That amounts to about 1/3 of our overall revenue. But. Can it be larger? We’ll have to wait and watch. The market is addressable and large enough, but trust us, we are also doing enough initiatives to drive other businesses.
Mayur Parkeria — Analyst
Okay sir, thank you. Wish you all the best. I’ll come in the queue.
Tarun Arora — Chief Executive Officer
Thank you.
operator
Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of Kinjan Mota from Banyan Tree Advisors. Please go ahead.
Kinjan Mota — Analyst
Good afternoon sir. One clarification. Excluding the impact of Ribite and Comfort Click, what would be our yoy growth of our core legacy business?
Tarun Arora — Chief Executive Officer
I don’t think we are sharing largely these numbers because then I’ll have to. So if I were to give you excluding Comfort Click and seasonal brands, we are registered double digit growth. But this is the only level of details we are sharing at this stage because if I start giving all the specific details it practically opens up everything. So we are helping improve disclosures but that will just get down to a lot more details. In any case, without Comfort Click and write byte for nine months, there’s a large chunk sitting on Glucon d nicel which have a deep impact.
So therefore it just becomes harder to keep sharing that.
Kinjan Mota — Analyst
Sure, no problem. Second question, second question was in terms of other expenses, I understand that Comfort Click is now the part like Comfort Click is integrated but is there any line item which has like significantly grew because other expenses went up by almost 3x y o y.
Tarun Arora — Chief Executive Officer
So it’s largely laid by you know, the comparison which is not like to like because of the inclusion of Comfort Leak and right by business expenses. Otherwise structurally nothing has changed in the other expense line item.
Kinjan Mota — Analyst
Sure. And the last question was with the consolidation of Ride byte and the incremental interest and depreciation related expenses that would come because of Comfort Click. And on the top of that the new MAT provisions which were discussed in. The budget. Budget, what would be the impact on our tax rate? Like how should we look at our effective tax rate going forward? Is there any change in the guidance?
Tarun Arora — Chief Executive Officer
Yeah. So you know, there was a budget announcement just a couple of days before and our team is working on finalizing the impact on the, you know, of this revised mat as well as availing the setup of the mat, you know, as per the new regime. And our team will be ready with the analysis in about weeks time and once we are ready, we’ll be able to disseminate the information to all of you guys in about weeks time.
Kinjan Mota — Analyst
Okay, sure, sure. That’s all for my site. That’s all for my site. Thank you sir. And all the.
Tarun Arora — Chief Executive Officer
Thank you.
Unidentified Participant
Thank you. Anyone who wishes to ask a question may press star and one now. Next we have the follow up question from the line of jam in from Ardeco Asset Management. Please go ahead. Jamin, you are on unmute, you can speak. So as there is no response from Jamin’s line can we move forward to the next question?
Tarun Arora — Chief Executive Officer
Yep.
operator
Okay, so the next question is from the line of Naveen Trivedi from Motilal OSWAL Financial Service Ltd. Please go ahead.
Naveen Trivedi — Analyst
Good evening everyone. So my first question is on the max protein side is it possible to give some gross margin understanding about this business and at what revenue scale you think that this business can also reach double digit EBITDA margin?
Tarun Arora — Chief Executive Officer
So largely gross margins have been similar to our rest of the business excluding comfort click. So it’s largely in line with that and it was breakeven when we acquired. It’s touching. I mean if you hear from my commentary, it’s touching. We’re seeing it touching double digit standalone EBITDA margins and we are hopeful that it can be a much larger, more profitable business while it expands.
Naveen Trivedi — Analyst
In one of your comment you had mentioned that this is a business which can achieve around even the 500 crore kind of revenue mark. Given we have seen a couple of quarters and the pace of the business is also kind of exceed our expectations. Do you think that this 500 crore kind of aspirational revenue scale is achievable in another two years time frame?
Tarun Arora — Chief Executive Officer
Hypothetically, yes. I can’t comment on the specifics but yes of course it’s possible. There is good potential in this.
Naveen Trivedi — Analyst
Sure. And since we are like I think next we kind of are commenting about more disclosures from the next quarter onwards. Any kind of a color about the comfort click, constant currency growth rates. If you can share.
Tarun Arora — Chief Executive Officer
We are not right now specifically sharing their growth rates as a separate line item.
Naveen Trivedi — Analyst
Sure sir, sure.
Unidentified Participant
Hello. Yeah, I mean if you want, I.
Tarun Arora — Chief Executive Officer
Mean just we have acquired a business. It has been four or five months now and you know euro depreciation on GBP rupee depreciation is in the range of 3,4% on annualized basis but you know we will keep your suggestion into you know account and from maybe next year onward we’ll start reporting constant currency growth also.
Naveen Trivedi — Analyst
Yeah, just last question. Typically our season organic business seasonalities is between Jan to June. Any color about how has been the first 30 days sort of a demand trend. Is it in line with kind of our expectations? That’s all from my side.
Tarun Arora — Chief Executive Officer
No overall, I mean early days to say Everything is in line. This, I mean 30 days. The real season starts from March, April. So these 30 days. Yes we are. It’s lined with our expectation, but that’s it. Nothing beyond that.
Naveen Trivedi — Analyst
Sure. Sir, thank you so much. From my side.
operator
Thank you. The next question is from the line of Mayur Pal Kariya from Wealth Managers India Private Limited. Please go ahead.
Unidentified Participant
Sir. Thank you for taking my questions again. Sir, on the nicely and glucon d side, we had a. We know, we understand that FY26 was a washout year kind of situation because of rains and seasonality situation. So from an inventory channel perspective and from the next year perspective, would you say that it is important to have a normal year for us to report the kind of margins which we look at incremental margin growth because that portfolio will be important and it didn’t happen in FY26 but. Or have we already. Is the inventory or the stocks are already absorbed and the impact of that is now behind us or will it be very important for us to have a normal year or a good year from those two product perspectives so that the impact can be understood on the seasonality as we go ahead, sir, for the next year.
Tarun Arora — Chief Executive Officer
Okay, let me just break it down into two parts. So you’re talking about margin and you’re talking about trade inventory. So first from a trade inventory point of view, I think calendar year 2025, the seasonality was worse than what I have seen last six to eight years data and therefore the trade channel inventory was worse than what we have seen. But we’ve taken enough actions to ensure that that’s all accounted for some of the retail or distributors, we also took a hit and absorb the inventory because at the end of it, if it is not selling to a consumer, it is our responsibility.
So we have taken some of the actions and we believe as the build up to the season which really picks up around April, we would have, you know, helped the market clean up that inventory and fresh stocks are built in so that I think we know how to do it and there’s a whole learning in the organization for that. So that shall be sorted. How will gd, nisil, Glucan D and NICEL impact our margin? I think it’s very, very crucial because they have a much higher than fair share of margins. So they have a higher index to our average margins without the conflict business.
And therefore it is very, very important for us to get this right. They provide us not just improved average gross margins but also have operating leverage on our overall business. So it is very important for us to get this right. My own understanding and whatever we have seen of it, it’s very hard to have back to back seasons go wrong. Even if the seasons back to back seasons do not work out, the normalized base will certainly give us a growth. So I’m not worried about growth, but the potential to grow much more and deliver a much better results is is definitely exists and therefore we’re looking forward to a better season leading to better both revenue and EBITDA impacts.
Unidentified Participant
Very important for us to have means just an improvement over previous previous year will not be sufficient. We need a normal year or a good year for us to.
Tarun Arora — Chief Executive Officer
Okay, so.
Unidentified Participant
The second question is slightly qualitative in nature from a comfort click point of view that business is platform and digital driven and for us it’s a to that extent it’s a newer business to handle relative to the brick and mortar in India, largely brick and mortar. I’m saying it’s not that we don’t have experience I understand but of the modern trade and E commerce is but then that’s the full business which is largely driven that way. The mindset or the sales activities, the promotion expenses, everything in the business model is different. Even the perspective from employee and the markets are also developed markets.
What I wanted to understand is I understand it’s only four months but has there been any issues or your experience in terms of employee retention in terms of in terms of also expenditure profile which has which is which will undergo a meaningful change or has undergone a meaningful change? Change compared to what when you acquired this or is it are there any risks which are emerging or are there any things which is changing has changed compared to when you acquired or is it is it business as usual and continuity is there and it is expected to stay over the next 23 years.
Tarun Arora — Chief Executive Officer
So I think a simple answer is that over last four months we have not seen any significant surprises, upside or downside for the business. A small little ups and downs within the business cycles that happen we’ve seen but nothing surprising. We spent significant time understanding the business as a part of due diligence and I think a lot of those things have been consistent over last four months as far as retention of the critical talent is concerned. We have spoken earlier also we have committed to a long term LTI’s long term incentive program for critical employees and we are working with them closely both in trying to engage with them and help them work through their business in the right way.
So at this stage I think no surprises. Will it stay your last Question two, three years like this we hope to and build on this but we’ll see as it plays out. But right now last four months have not given us any reason to believe either way.
Unidentified Participant
Okay, great.
Unidentified Participant
Sir, what would be the total strength in the comfort Click sir. Employee strength.
Tarun Arora — Chief Executive Officer
About 340, 300 plus largely Indian resident, large offices between Hyderabad and Baroda.
Unidentified Participant
Thank you sir. Thank you for detailed explanation. Thank you and wish you all the best.
operator
Thank you. The next question is from the line of Aditya from Sovilo Investment Managers llp. Please go ahead.
Unidentified Participant
Yeah, hi. Thanks for the opportunity. My question was like if I just look at your numbers at the current moment I understand from EBITDA to Pad the journey basically is being affected because of the acquisition side both whether it’s the interest cost or the amortization. So how long do you think that this will continue? And you know I’m just trying to understand you know where which is the current quarter, the bottom or we would we should expect this to continue say for the near future as well.
Tarun Arora — Chief Executive Officer
So as we talked about this earlier also maybe the current year, current financial year will be the bottom and from next financial year onwards we’ll have even you know, EPS accretive P and L even for the new entity, newly acquired. Entity at the fact level is.
Unidentified Participant
Understood. Thank you so much.
operator
Thank you. The next question is from the line of Sandeep Abangi from LKP Securities. Please go ahead.
Sandeep Abhange — Analyst
Yeah, yeah. Thank you for taking the question. So I just had one question regarding the equation which you have made. So we have seen quite a bit of new launches in this retirement and supplement phase in India as well. There have been a lot of brands which have been growing, going very fast and they are available in all the channels. Just wanted to understand that are you planning to introduce this portfolio in India as well going forward? And I’m trying to ask this question from a perspective for like two to three year perspective you can just throw some light on this.
Tarun Arora — Chief Executive Officer
So I think I would review this from the lens of comfort click rather than review of the fact that we are India resident business. I think from a comfort clique UK based entity they would first want to where should I be. And I think Europe and US are much larger, much potentially bigger markets to play have a more similar opportunity. So I think that’s a bigger priority. India is clearly one of the priorities but we’ll evaluate maybe in some time as things go along. But the business has done rather well in those more developed larger markets.
So India falls a little lower on priority. We’ll obviously evaluate. We’ll continue to evaluate and at appropriate time, we’ll take our calls.
Sandeep Abhange — Analyst
Okay, so no plans in near future? Yeah, okay.
Tarun Arora — Chief Executive Officer
Okay.
Sandeep Abhange — Analyst
And just one last bookkeeping question I had regarding your base business. I think you mentioned the margins of the base business, so can you mention it again on the margins of base business.
Tarun Arora — Chief Executive Officer
So we don’t share those numbers separately?
Sandeep Abhange — Analyst
Okay. Okay, thank you.
operator
Thank you. We’ll take the last question from the line of jamin from Ardeco Asset Management. Please go ahead.
Unidentified Participant
Thanks for opportunity again. Sir, can you hear me?
Tarun Arora — Chief Executive Officer
Yes, please.
operator
It seems like there’s a network issue on Jamin side.
Tarun Arora — Chief Executive Officer
So if there are no more questions, we can end the call.
operator
Okay, sir. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.
Tarun Arora — Chief Executive Officer
Thank you, everyone. And from our perspective, we’ve started the new year and new budget and new season from our perspective. And we’re hopeful that we will be able to build further on where we have seen the last few quarters gone by and close the year productively as we wish to look forward to you engaging with you in the next quarter. Thank you and best wishes on behalf.
operator
Of Zydus Wellness Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.