Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Zydus Wellness Ltd (NSE: ZYDUSWELL) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Tarun Arora — Chief Executive Officer
Analysts:
Akshay Krishnan — Analyst
Tejas Shah — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Zydus Wellness Limited Q4FY26 results conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Show DD assistance during the conference call. Please signal an operator by pressing STAR and then zero on your touchdown phone. I now hand the conference over to Akshay Krishnan. Thank you. And over to you.
Akshay Krishnan — Analyst
Hi. It’s an absolute pressure from ICIC securities to host the Q4FY26 earnings call for Zydus Wellness. From the management, we have been represented by Dr. Sherwin Patel, the chairman, Mr. Ganesh Naik, the non executive director, Mr. Tarun Arora, CEO Mr. Umesh Parikh, the CFO. I hand over the call to the management for the further remarks. Thank you. And over to you sir.
Tarun Arora — Chief Executive Officer
Good evening and welcome to the post results teleconference of Zydus Wellness Limited for Quarter 4 financial year 2025 26. Like Akshay mentioned, I have with me Dr. Shahud Patel, Chairman, Mr. Ganesh Naik, Director and Mr. Omesh Parekh, CFO on the call from our side. During the quarter, consumption trends remained steady, supported by a sustained recovery in rural demand which continued to outpace the gradual improvement in urban markets. Commodity input costs show divergent trends across categories while structural growth drivers remained intact with quick commerce and E commerce sustaining strong momentum.
The ongoing geopolitical disruptions have had a limited impact on the company. With proactive mitigation measures in place, innovation always has remained one of the core drivers of portfolio growth and we continue to leverage our R and D capabilities to enter new demand spaces, address evolving consumer needs and deepen category relevance. An exhaustive list of launches and extensions is available in the investor presentation to name a few. In the quarter gone by under the Ride by Max Protein franchise, we
Tejas Shah — Analyst
Expanded
Tarun Arora — Chief Executive Officer
Its offering with the launch of Max Ultimate Protein Boost Ready to Drink Beverage, Max Protein Roots Ghee Jaggery bar and Korean flavored chips with multiple flavors. These launches expand the portfolio beyond the core bar format, widen consumption occasions and position the brand to participate more meaningfully in the growing on the go protein and healthy snacking space. Across channels. Sugar Free Delight we added a new variant, Sugar Free Delight Choco Spread to the domestic portfolio during the quarter, further strengthening the presence in organized channels.
The Sugar Free Delight range continues to see steady consumer traction, supported by increasing adoption in the Better for you dessert segment in the Ivyu franchise. The Tan Ovul segment continued to gain saliency within the portfolio supported by quarter four financial year 26 launch of the tan removal phase one. This strengthens the brand’s play in functional skin care and builds a more comprehensive offering for its core consumer segment. Under Glucon D we entered a performance hydration segment with the launch of Recharge across two formats, Liquid in orange and green apple flavors and Sachets in orange and lime flavors.
Targeting active and health conscious consumers. Initial response has been encouraging providing a credible entry into path growing adjacency within the wellness space. Under the Comfort Click portfolio, we expanded its portfolio with seven product launches across Wheat World and Animico, strengthening its presence in high growth digital First Health segments and improving portfolio depth across key markets. Across all new launches, we are leveraging AI led consumer targeting and data driven media allocation to improve precision, optimize spend and enhance returns on brand investments coming to the company’s financial performance.
Net sales for quarter four financial year 26 registered growth of 62.1%. The international business including Comfort Click business delivered a like to like growth of 31.4% while the domestic business grew by 1.7%. Within the domestic business, the seasonal brands declined by 9.8% whereas the skin and hair care brands registered a growth of 39.7% and food and nutrition brands grew by 9.4%. For financial year 26, net sales registered growth of 46.4%. The international business including Comfort Click business delivered a like to like growth of 29.5% while the domestic business grew by 2.4%.
Within the domestic business, the seasonal brands declined by 18.8% whereas the skin and hair care brands registered a growth of 21.9%. In food and nutrition brands grew by 15.5%. As per the internal data, the domestic business continued to witness a steady shift towards organized channel with saliency improving to 30% in financial year 26 from 24% in financial year 25 driven by premiumization as well as strong growth in monetary and e commerce channels. On the EBITDA front, the company reported a growth of 42.2% for the quarter, reaching to 2701 million rupees, an increase of 34.2% for the full year, closing at rupees 5097 million.
Net profit declined by 5.8% during the quarter and 43.2% for the year. However, net profit excluding exceptional items and amortization of acquired brands registered a growth of 17% and 2.3% for quarter end year respectively. Key drivers impacting the movement from EBITDA to Pvt for quarter four and financial year 26 include the acquisition that is strategically funded that was strategically funded through a low cost bridge loan in gbp subsequently refinanced into a further lower cost euro facility with the related interest expense reflected in finance costs.
Amortization of acquired brands led to higher depreciation and amortization expenses. Exceptional items that include one time impacts from implementation of the new labor code acquisition related costs and expenses related to liquidation of Natural India Private Limited are subsidiary of the company on a going concern basis. Brand performance and market share developments are detailed in the investor presentation. Notably Compliant maintained its fourth ranked market share position during the quarter.
The company transitioned to direct supply of compliant Nitrigo in the kids segment while simultaneously driving user acquisition across toddler and adult nutrition portfolios through digital, clinical and expert led interventions. KW delivered strong double digit growth in financial year 26 driven by innovation, distribution expansion and enhanced consumer experience with tan removal further strengthening its saliency supported by Quarter 4 launch of Tan removal face wash within the suite of portfolio Market share expanded by 24 basis points as per mat March 2026 report of Nissan and IQVR while sugar free green delivered 20th consecutive quarter of double digit growth.
Sugar free Delight range continued to deliver a strong quarter performance and recorded high double digit growth compared to last year. Quarter brand delivered double digit growth despite gas supply. Nuclear brand delivered consistent double digit growth despite gas supplied headwinds supported by a strong portfolio innovation and AI led consumer. The Ride Bite Max protein business continues to outperform expectations reinforcing its leadership in protein stacking while driving category expansion through innovation, Cultural relevance and scale led efficiencies resulting in strong value volume and margin growth.
Robust growth on quick commerce underpinned by continued expansion and distribution footprint. Successfully expanded the weight world and Maxmedics brands through launches on boots.com, our leading UK health and beauty retailer and a fast growing vitamins and supplements category. Established a presence on Amazon in UAE. We are entering financial year 202627 with a clear and execution focused growth agenda anchored in innovation portfolio scale up and margin expansion and strengthened by data driven and AI like capabilities to deliver sustainable profitable growth while continuing to accelerate the innovation momentum building on the strong foundation established in financial year 2025 25.
Thank you, we will now begin the Q and A session over to the Coordinator.
Questions and Answers:
Operator
Thank you, we will now begin the question and answer session. Participants who wish to ask a question may press Star and one on your touchtone telephone. If you wish to remove yourself from the question key, you may press star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have the first question from the line of Tejas Shah from Aventus Park. Please go ahead.
Tejas Shah
Hi, thanks for the opportunity. So first question pertains to what specifically weighed on growth on the seasonal portfolio this quarter and how soon we are confident to go back to the stronger trajectory because the last year base is also weak one for this part of the portfolio.
Tarun Arora
I think sweetener portfolio is so seasonal brands I think we’ve had especially in north and east is where our strong markets are. We’ve seen especially in March there were rains and east was particularly impacted. So we are hopeful that as summers progress things could get better but badly. It was less than expected and the temperatures were lower than normal and there was a pipeline with the retail which also played out against the normal situation. We see
Akshay Krishnan
Recovery from May onwards.
Tejas Shah
Okay, because summer actually picked up a bit late but it became stronger. So are we seeing already already seeing benefits of the same or the season has gone so again for this year we should not count that now
Tarun Arora
So I’ll not comment on the forward but we’ve seen a late summer the initial because comparatively last year the summers came in early February onwards and the rain started in April. This year it’s been quite opposite of that. It was raining in March and right up to mid of April and therefore there has been a delayed summer too early to start predicting how the overall season will go but we are hopeful that some of the Mrs. Of the earlier part of the season can be recovered if season progress is right.
Tejas Shah
Second Comfort click seems to be doing reasonably well. Just wanted to know how should we think about the growth trajectory from here on and what extent of current supply chain volatility which we are witnessing globally can impact the plans there on growth and execution.
Tarun Arora
So right now it’s been seven months since we acquired it. We believe like we’ve said in the past, we believe in the growth trajectory of this and it is a widespread growth across five countries in Europe which are the bulk of the business and they’ve been expanding into other European countries. Us, UAE are small early bets we have taken. So we believe the growth trajectory right now looks on a good ground and we’ll take it as it comes. But the team is quite focused the penetration levels in BMS on online purchase is going up so we Remain committed at this stage
Tejas Shah
As a last one on margins. So we are now on a larger scale of revenue base, almost 4,000 crores. And we were hoping that our operating leverage will come through, but for whatever reason, the macro and micro vote that is not playing out. So from here on, what trajectory are we kind of channelizing our plans to and how soon should we kind of reach that aspirational goal of 17 to 18% margin that you spoke about one or two years back? Also,
Unidentified Participant
Ladies and gentlemen, please stay connected. The management line had just dropped. We will reconnect them back.
Operator
Ladies and gentlemen, we have the management line reconnected.
Unidentified Participant
So can you hear us? Are you able to hear us, sir?
Operator
Sam, Over to you. Sir.
Tarun Arora
Yeah, is Tejas still there online?
Operator
Yeah, hi sir. Yes, Tejas is connected.
Tarun Arora
The line got disconnected. So we are still very positive about the current direction of growth given our width of portfolio and the trajectory. And we have good bets which should help us build in the right direction.
Tejas Shah
So my last question was on margins. So despite very high margin portfolio getting added in the revenue, we are tracking lower than our near term aspiration and even long term aspiration, which is 17, 18%. So just wanted to know how soon can we kind of go back to those near term aspiration and then the long term aspirations as well.
Tarun Arora
Margins at a gross margin level has actually in line with what we have planned. I think the only thing that last quarter has seen is the mix where the seasonal brands have not fired to our expectations. Those are, I mean external things which go beyond us. But all our actions are in place and therefore we believe that in a normal situation, this is
Tejas Shah
Largely due to headwinds on this seasonal portfolio, which has more than average gross
Tarun Arora
Margin for the company and which also has more than average EBITDA for the company has impacted the overall PBT and debt.
Tejas Shah
Got it. Thanks. And all the best. Thank you.
Operator
Thank you. We have our next question from the line of Ronak Shah from Equity Securities. Please go ahead.
Tejas Shah
Yeah. Hi team. So thanks for the opportunity. So my first question is regarding the comfort clip. So within the comfort clip, what is driving this sharp growth? So in the PPT you have highlighted a newer geography addition. On top of that a new platform addition. However, from the strategic perspective from near to midterm, how we are seeing the newer geography addition, platform addition, how the higher customer acquisition or the other strategic part is shaping up. And secondly on the USA part.
So could you share an update on how the scaling strategy for the USA is working?
Tarun Arora
So on comfort sake, I think it’s been a high growth business as we acquired and We’ve talked about it 57% CAGR five years before acquisition we talked about the same growth may not happen but we are quite positive about the growth. So It’s a large 11 more than 11 billion euro market in Europe for VMS market is shifting towards online space and we have been amongst the leading brands in driving that agenda and top five markets continue to be a bulk of our business and that’s like Germany, Italy, Spain, France and uk.
We have also expanded the to other European markets where we had limited presence like Portugal, Finland etc. So we are expanding our Europe presence which is continuing to help us grow on the like for like growth within the core markets and new markets. We’ve taken a medium to long term bets on some of the markets which we did not have presence for example on us, UAE and some other markets which we decide but they are more medium term long term bets where we’ll have to build over a period of time.
We continue to expand. Right now the business is largely led by Marketplace Amazon and D2C. We are looking at other marketplaces like we have put it like boots.com or etc. Where we are wanting to expand. So some of these actions are in place and we are also I think strength of this business is knowing the trends and being able to respond pretty fast. So we are launching new products which are relevant to consumers that are as the trends shape up in the VMS space. So that’s the strength we are playing on and that’s really what is working and giving us growth.
It’s still seven months only since we acquired it. We are looking to continue to build in the current momentum that you’ve seen last quarter.
Tejas Shah
Understood, Understood. Just a small follow up from the bookkeeping perspective. So now the annual numbers are in how the IR consideration and amortization amount will look like.
Tarun Arora
So amortization. You know what you see the number in this quarter the the quarter four will almost be on the similar line because that captures the full quarters amortization.
Tejas Shah
Okay and from the INR term overall consideration perspective what can be the amount
Tarun Arora
Amount in terms of what
Tejas Shah
INR term consolidated amount from the comfort click equation and the goodwill.
Tarun Arora
That is what I’m saying. The Q4 financials console financial capture the number and number is going to pan out for the whole year. Okay,
Tejas Shah
The last question is from the right bite perspective. So just want to understand from the strategy perspective though you have highlighted fewer newer launches and all. However if we compare a three years Back story to now, how the distribution mix has shape up, how the subcategory or the newer category expansion will look like and on the newer product aggression front, how the things are shaping up.
Tarun Arora
Before the acquisition the business was growing at 25% CGR for five years. Like we mentioned in the last call, we’ve seen more than double of that momentum on the business. We continue to focus on driving growth through category expansion and within the. I mean on the base products which is our bars, protein bars. We’re also looking at expanding into newer categories through new launches which we mentioned. RTD, beverage chips, etc. The snacking, healthy snacking approach. Our distribution is being built up and we’re seeing online traction also going up through Quick Commerce.
Tejas Shah
Understood, Understood. That’s it from my side. Thank you.
Operator
Thank you. We have the next question from the line of Akshay. Please go ahead.
Akshay Krishnan
Hi sir, thanks for the opportunity. My question is on the Quick Commerce. So it appears to be scaling strongly across your multiple ports portfolios. Now is this changing the company’s approach towards innovation and the product launches and the channel investment versus the traditional FMCG distribution process?
Tejas Shah
I think what you said is true. I think our products are more suited towards the new trends and the new consumers who are choosing to buy through Quick Commerce. And I think assortment as well as our new introductions are well designed both to make sure that on this channel we are relevant and we continue to gain share. But also on the traditional channels also we have the right SKUs and portfolio which helps us also continue to grow in the rural and urban market. So I think we have a fit for purpose kind of portfolio now with the new acquisitions as well as well as the new SKUs that we have launched and we would continue to see better traction on this channel.
Akshay Krishnan
What would be the serious of the QC as in pointer on a bio sequential basis.
Tejas Shah
Can you repeat the first part?
Akshay Krishnan
What would be the saliency of qc? The contribution of QC to our overall.
Tarun Arora
So. So overall online. Sorry, modern trade. So modern trade plus E commerce organized feed is about 30% of our domestic business. Quick commerce will be 7 to 8%. Yeah, but you know, out of E commerce QuickCommerce is about 44, 45% which is down to 8% of the 78%.
Akshay Krishnan
Okay, my second is on the comfort play now. Now this gives us Zidus the access to the global D2C and online LED wellness category. Now beyond the revenue growth, what are the key capabilities or the learnings that can be leveraged in the Indian side of the business,
Tarun Arora
I think the business is very strong in terms of because they are online first business. So they have done rather well in terms of how they reach out to the online consumers and how they build the franchise without worrying about the offline world. And there are various parts of doing so both in terms of building, looking at the trends, launching new products at a fast pace and marketing to this online first consumers. And I think this is largely the model that we are working together to sharpen as a company because this really makes us almost one third of our business online at a total level.
So we believe that it will give us a good edge in preparing for the future in a more digital world.
Akshay Krishnan
Got it, got it. My third is a follow up question on the gross margin from the previous participants. So we’ve been like our gross margins are in the guided range now. Are we seeing a scope for the operating leverage to improve further or are you going to reinvest behind newer categories? Is that brand investment going to scale up now?
Tarun Arora
Certainly. You know, as we have been telling in various conferences, our operating units will definitely play out and we as also we said that comfortlink business has largely the variable spend but on overall business definitely operating leverage will play out and which will add to our EBITDA as a percentage to sale.
Akshay Krishnan
Okay, the last question on a medium term basis, how should we think about the company’s dependence on the seasonal categories? Because now you have the stress on the seasonal aspect and especially on nicely and glucose versus in your wellness category. So how are we looking at the company’s overall dependence over here especially in protein supplements and hydrations.
Tarun Arora
So I think seasonal will continue because it’s a valuable part of our business. It gives us a good operating leverage. We’ve had four quarters of challenge but that doesn’t mean that it will remain so we are quite hopeful that it should come back on track and over a three to four year period should deliver a consistent double digit growth. And if we look at outside of seasonal portfolio we continue even last financial year we delivered a fairly good double digit growth and we continue to believe whether it’s a right back portfolio, neutralite heavy youth, each of these brands even a complaint last quarter and compliance each of them have are showing a good momentum.
So we believe a double digit portfolio is the right way to continue to build us and we keep looking at expanding the categories through innovation and expansion to new consumers.
Akshay Krishnan
Okay, one final question if may I? No, we’ve been seeing that many wellness categories they initially scale up faster and they become heavily promotional and this is generally it’s like more of a startup LED size. Now how do you plan to protect the profitability while continue to drive the category expansion into this?
Tarun Arora
Let’s take the case of Rite Ride. When we acquired the brand it was very small scale and we’ve scaled up at a fairly fast pace and what we understand in the protein snacking and a competitor space, it is the only profitable or most profitable brand that exists. So as a company we are quite focused on category development but doing it profitably. So each of our offerings that we work we have a clear objective from a consumer side in terms of acquiring more consumers volume led growth through the right process, more contemporary touch points whether digital or offline, whatever as well as on the profitability side constantly have built profitability so that we have enough fuel to support brand.
So that’s a business model that we have been able to replicate. Some brands respond better, some take longer time but that’s really a that we work with and that is something you will see across our portfolio.
Akshay Krishnan
So when you acquire a brand so you also onboard the existing promoters and the brand guys who’ve been running up the business or is it like completely taken over by you and then you run your own perspective of it.
Tarun Arora
So when we take, even if we take 100% we look at what are the fundamental drivers of the business and the value creation. Whether it’s the management or the promoters, we are ready to take on those and work with the right teams that will help us build and transition into Zydus Wellness. We are working but there is no one size fits all for all acquisition. But that’s. Those are fundamentals that we will look at.
Akshay Krishnan
Okay, thank you and good luck and all the best sir.
Operator
Thank you. We have a next question from the line of Umang Shah from Banyan Tree Advisors. Please go ahead.
Tejas Shah
Hi sir, Am I audible? Yes, hello. Yeah, hi. Thank you for taking my question. So first question was within food and nutrition, if you could break out the full year growth between Rite Bite and other products. So that would be great.
Tarun Arora
I think you will appreciate that we’ve already given this time much higher level of detailing than we’ve ever given in the past. It will not be possible for us. We’ve already given a directional indication of what is the growth of RiteBike beyond this may not be possible. I can tell you that actual branded level growth is much higher than what we reported because we’ve optimized some of the contract manufacturing portfolio like we used to do ketchup. So actual growth is Higher. But beyond that it will not be possible for us to give us a specific brand by brand growth.
Tejas Shah
Sir, the second clarity that I’m looking at is can you comment on the tax rates for FY27 and 28 or at a console level?
Tarun Arora
Yeah. So FY27 28 will be in the 25% bracket, but 2627 it will be, you know, kind of cash plus deferred tax, asset use. So the mix of two.
Tejas Shah
Okay. And the mix of two will also be 25 and FY28. I’m assuming everything will be cash tax, full tax rate.
Tarun Arora
Yeah, yeah. Okay.
Tejas Shah
Got it, got it. And sir, you have also called out Cuticolor as a part of skin and hair care. I’m assuming that Cuticolor started operations for last quarter only or was it a full year number?
Tarun Arora
Cuticular has been there in our portfolio about six months and it’s only being played in the organized feed monitored and E commerce.
Tejas Shah
Got it, got it. Thank you so much. I’ll get back in the queue.
Operator
Thank you. We have the next question from the line of Mayur Paqueria from Wealth managers. Please go ahead.
Tejas Shah
Good evening sir and thank you for taking my questions. So just wanted to understand that when we acquired Comfort Click we were of the view that we can clock around 14% EBITDA margin and it had clocked before our acquisition around 15 odd if I remember. Well, where are we on that trajectory? Just will FY27 come back to those numbers and with that in light, if you can just also add that at a PBT level. Can we see, is it possible to see a break even in FY27 or have we already seen that
Tarun Arora
For Comfort Lake? I think we are holding on to what we said earlier and we are in line with our expectation slightly exceeded as far as Q4 is concerned on Comfort League business itself, we have become EPS accretive.
Tejas Shah
Okay. Okay. Will it be possible to quantify that? You know, slight. Is there a benefit of pound. You know in terms of pound INR because when we acquired it was 116 around now 128 or average also. So is there some element of that benefit flowing into the numbers?
Tarun Arora
Yeah. So we also mentioned in our investor presentation and between the total growth of Comfort Click and constant currency growth, that is the gap about 3%.
Akshay Krishnan
Okay.
Tarun Arora
There is a
Akshay Krishnan
More international business always and knowing how the rupee over the long term will always depreciate. Always see that benefit of international business.
Tejas Shah
Right. So in short we are on track for that margin which we had seen and the possibility. That’s great to hear, sir. That’s great to hear. I somehow feel that, you know, last quarter also we had mentioned that we had taken aggressive steps to, you know, clear out the inventory issues on our seasonal portfolio with respect to Glucon D and Nicel. But this quarter it seems again we have got little impacted by higher inventory. That is what your initial comments, if I understood correctly. So I was just trying to reconcile where again we got where the.
Where was the lower than expected situation. Again, what came in this quarter as a negative surprise. But even with that I somehow feel that, you know, whatever external issues are playing out, I think the next quarter can be. Are we positioning in the next year actually, are we positioning for a very strong comeback in terms of both the domestic portfolio, which is there, and clicking the right matrix in the growth as well as the seasonal portfolio and the comfort click in a broad direction, do you think?
Are we on right track to understand that?
Tarun Arora
So I think as far as the seasonal portfolio is concerned, there is a pipeline which exists at different levels, internal level, which is us, our distributors, the wholesalers and retailers. While we have over the last few quarters after the season didn’t play out last summer’s we have managed our inventories well, but retail and wholesalers also sitting with inventory and sometimes we help them but we can’t clean up the whole market inventory. Some of those, you know, when the season is delayed like this year, it was the typically wholesale and pipeline buildup happens.
This time it has not happened and that’s really what it is. It’s not about that we have to clean up every time. It is just that the pipeline buildup which is in anticipation of summers, as the summer kick in, you start buying in advance. That has not really happened and that’s why that has really played out from the market is concerned. So it’s not that something has gone wrong from that point of view. So our actions are in place. We will respond to as the temperatures move up or down and as the optics happen.
And therefore, since it’s played opposite of last year where there was early summer and early rains, this time it seems to be playing opposite. We’ll have to see how it plays out. But we are hopeful that with the late advent of summer we should be able to recover some of the misses that we had in the early summers. But we will have to see how this comes out.
Tejas Shah
Sir, I had one question and observation on the sugar free portfolio and I noticed a very interesting trend and in the B2B segment some of the local players and this is observation in our market close to it was by chance, you know they using till now we are using, you know the green portfolio as well as the light that is more as a. As a B2C directly. In terms of what consumers are consuming, is there an element of B2B or I don’t know if horeca is the right word for that but B2B part many players, you know, local players, players and the.
You know they using substitutes and promoting a better product. In terms of the sugar content, is there an element of market expansion possible there? How are we playing that in terms of that? Is there because it’s still a sub 400 crore market in terms of that. While we are our product is seeing double digit the green portfolio. But what I was looking at is is there a B2B play in this product also and are we looking at that and composition right now?
Tarun Arora
So to answer you the Oreqa or B2B as you’re saying a lot of that is sold as sachets which are given free. So they only look at cost. Sometimes the brand and quality is not their priority and certain customers and there are some local considerations or relationship considerations which also play and it’s a very small market so it’s not something that I will lose my sleep over. We work very hard to build this but sometimes we do lose on some of these grounds. For sugar free to expand, I think the focus is on twofold.
One is to get new consumers because there has been negativity around after WHO which we’ve been able to overcome significantly using one sugar free green, the Stevia based plus. Also our communication on sucralose based sugar free gold plus etc. So we are building on that. The other is around sugar free Delight which is our extension into food which is the sugar free foods which is chocolates mainly on online and cookies which is both online and offline. And we are looking at the overall franchise therefore getting into a larger space.
And I think we are moving. We are seeing good movement across both stevia based product as well as the sugar free Delight. We hope that we if we continue it will give us expansion of the brand and the category.
Tejas Shah
Thank you. Okay. Okay sir, from a reported segment, from a reported financials perspective I just thought that if possible you can consider given the geographical spread, I think shouldn’t geographical sector segmentation now form part of our reported numbers. And if you can consider that as we go ahead with that great disclosure this time around from what we have seen in the past and hope we continue to maintain that. Thank you so much.
Tarun Arora
We’ve given international and domestic beyond that further geographical will be hard for us.
Tejas Shah
So as a part of segmental disc, not as a presentation, I meant as a segment information in the this published financials.
Operator
Thank you. We have the next question on the line of hashtube from LFC Securities. Please go ahead.
Tarun Arora
Yes,
Tejas Shah
So my question is related to the right bite segment. As we were saying in the previous quarter also and like from the last three quarters that we are seeing at probably double of water growth rate before acquisition, right. By two things. So for the whole year we have seen that kind of growth of 50% so 244 crore or something. But what is an expectation going forward as we are doing innovations in this segment? Do we feel that we are going to get into major efficiencies in this ride bite segment or are we going to continue in the protein bar and the ready to drink segment only?
Tarun Arora
So we are evaluating more segments like we’ve launched RTD Beverage, we’re expanding within our portfolio, we’ve launched within bar so I think there is enough room for growth within the portfolio and limited adjacencies we have already explored as we talk. That’s really what our focus is, right?
Tejas Shah
Perfect. On the seasonal portfolio. As you rightly mentioned that since this last year wasn’t great for the seasonal portfolio and since the summer is harsh this time it has started might be little late but is harsh. So what I just wanted to understand when we say the category, so when we see the numbers the category is de growing but we say that we are going to have a double digit growth so most probably we are going to take market share. So in blue condition or compliance. Compliance is a de growing segment.
So where are you going to get growth from? In the sense that the category is degrowing but you are saying that you are going to grow in double digit on a longer term basis. So just wanted to know the thesis behind that.
Tarun Arora
You are saying two things. One is seasonal and then you’ve got into content. So as far as seasonal is concerned I think we are focused as the season improves our numbers will go up, our market shares are well in place and we continue to get new consumers because we are market leaders in these places and it’s our job to grow the category. And we’re also doing extensions like RTD etc. We have done them Lucandi that we’ve talked about. As far as comp plan is concerned I think our focus is reframing Conplan we’ve talked about, we’ve already started launches on adult nutrition which we did not have a presence in through Vmax by Complan.
We’ve also relaunched Con Plan Mutigo in about a quarter back. We are seeing good traction on that and we have couple of more launches in place. So put together we believe there is a way to exploit compliance, very, very strong equity and be more relevant to consumers of today rather than just live in the past of traditional HFD in the kids space. So there are consumers seeking more. So we believe there is a path to getting growth. Plus we’ve also been, we have reached. So we have a brand ambassador, Weber Suryavanchi which we’ve signed up last year and we had the commercial rolled out this February as he started picking up.
I think therefore relevant to today’s generation buyer products buy new communication by better positioning will help us continue our growth momentum despite the category challenge.
Tejas Shah
So it’s going to be the adjacencies as well as the growth into the newer segment is what you’re saying, right?
Tarun Arora
You could say that,
Tejas Shah
Yeah. Okay. On the every youth and the neutralite segment I just wanted to understand. So we are seeing good growth in every youth and just wanted to understand. So is, is it going to be here the market? So the market share that, that we have, we are having right now. Are we expecting it to grow going forward or you know there is. There’s going to be no new innovations in this segment. How do you see about this segment as well as the neutral items in the neutralite? We don’t give the category size.
I know that it’s not possible because it’s related to, you know, milk stuff and other things. So. But how are you seeing both of these segments as well?
Tarun Arora
So first on every youth I think we are market leaders. If I look at sub segments of scrubs and Pilos and we’ve been. Our focus has been growth and we’ve been able to drive the growth and increase our shares as well. Therefore we’ve started looking at overall facial cleansing which includes face wash, masks, scrubs, everything where we’ve been gaining share over the last few years and we continue to hope to move in that momentum. So our focus remains category development and market share growth both.
And we’ve seen good success in last four to five to seven years on that. And we continue to build around innovation and brand building around that coming on to neutralite. That data is not available. No syndicated data is available and that’s why we do not publish We’ve been again here focused on category development and expansion into adjacent spaces. Our strength, our core remains are fat spreads. Sorry. Both in professional as well as retail space we have expanded on butter ghee and professional cheese and as well as mayonnaise which is helping us expand the brand and leverage our brand’s strength which is giving us the growth momentum.
So put together both these portfolios, we have brand building, leveraging our brand strength, innovations and distribution expansion driving our growth and we see the momentum going forward.
Tejas Shah
Perfect. Just wanted to. Sorry to interrupt
Operator
Mr. Harsh request to kindly come back in queue for follow up questions.
Tejas Shah
Yeah, sure. Thank you.
Operator
Thank you. We have the next question line of Tejas Shah from Avendis. Please go ahead. Tejas, can you hear us?
Tejas Shah
Yeah, am I audible? Hello?
Operator
Yes, you’re audible now. Yes, go ahead.
Tejas Shah
Thank you. Thanks for the opportunity for the follow up. So because how the portfolio has shaped up over the years now a lot of our annual fortunes now get gravitated towards 4q and 1q and summer season and then within that also we are over index to north and east region. So from a strategic perspective, are you comfortable with this external driver to decide our annual fate in every year? Because no matter how much we put in effort for three months or three quarters, one bad quarter and then we actually go back to square one because of the because of the volatility of weather and external exigencies.
Tarun Arora
So I think if we segment the portfolio this concern remains. But now if you look at the new portfolio and as the expanded portfolio the saliency of this business has reduced and therefore with this expanded acquisitions of Ride by Trumpet Lake, the overall business the dependency has obviously reduced. But this is a very important and valuable portion of the portfolio. It’s become a part of the base. So I think we are okay with that and we are extending ourselves into newer spaces like Glucondi Activon Glucondi recharge which will help us grow beyond the traditional space.
So we are doing whatever we can, but I don’t want to let go of what we already have. Some of those things will hamper a year or two, but over three to four years I think should be able to give us a good double digit growth as we’ve seen in the past.
Tejas Shah
Perfect. Second, despite the seasonal portfolio remaining under index in the quarter, our gross margin remained very healthy. So is it that versus the new portfolio or the evolved portfolio that we have with hybride and comfort? Click. Seasonal portfolio is gross margin dilutive and it is a debita when the Operating leverage comes on the amp spend, it becomes accretive at EBITDA level.
Tarun Arora
So on the gross margin front I think even on the portfolio at comfort leak we have improved our gross margin and the comfort click gross margin is over indexed to the company’s gross margin. So therefore you see the high gross margin here. So there are multiple actions we have taken. Each of the brands within our domestic range has increased our margins and we have taken calls on some of the portfolio, some of the products which are low margin. So therefore we are seeing a right movement.
Tejas Shah
Okay. And so last one on Cuticolor seems like a very clean slate organic attempt in a very competitive category. We haven’t leveraged every youth also as a brand perhaps because it’s much more connotation with skin care. Just wanted to know what is the value proposition that we are banking on because it’s very crowded space and what has been initial response from the trade so far?
Tarun Arora
So Cuticolor as a brand is strongly derma supported as a safe hair color. Its Korean origins and very effective. It is a high priced product because it is backed by strong influencers and dermatologists. Therefore it is getting good traction and we believe we will continue to build around that.
Tejas Shah
I think it’s one of a kind product with the key ingredients being exceptionally high quality and free of many of the challenges that you face with traditional hair color. So
Akshay Krishnan
We
Tejas Shah
Are seeing very significant traction with the consumers and repeat buying
Akshay Krishnan
As well as new consumers. So we are seeing, we are seeing extremely good support to the brand now.
Tejas Shah
Okay. And have we activated our d?
Operator
We’ll have to go to the next question sir, as members also online. Thank you. We have the next question line of Yashwar the Nagarwa from IFL Capital. Please go ahead.
Tejas Shah
Yeah, good evening. Am I audible? Yep. Hello. Yeah, also thanks for this opportunity. You mentioned that the impact of war is limited. Just wanted to double click on it. Hello,
Operator
If you could go off the speaker for Mr. Yashwar then.
Tejas Shah
Hello?
Operator
Yes, go ahead.
Tejas Shah
Is it better now? Hello.
Operator
Yes, it is slightly better now.
Tejas Shah
Yeah. In the initial remarks you mentioned that the impact of war is limited. Just wanted to double click on it. Are we seeing any supply side challenges or inflationary pressures? Any early signs of that you may want to call out.
Tarun Arora
We’ve not had supply side challenges beyond a certain businesses in Middle east which is still a very small portion of our business. Rest of the things are largely so far have been in control.
Tejas Shah
Okay, sir, perfect. So my second question is on the seasonality. You mentioned earlier that the seasonality versus last year has changed in the sense that summers were followed by rain in Q4 last year. Whereas in this year the situation is totally opposite. So is it fair to assume that we were sitting on a higher base in the Q4? And even if we witness a normal swimmers in the current quarter seasonal brand portfolio could achieve good growth in Q1 FY27?
Akshay Krishnan
Yes.
Tejas Shah
Yeah. Thank you sir. And so my last question is on the possibility of divesting any of the slow growing product category and investing that part of capital either to retire the debt or find newer high growth categories such as right bite and comfort clicks. Any thoughts on that?
Akshay Krishnan
I think our allocation of funds are appropriate to the brand. So I don’t see any major changes. I think all brands have appropriate funding required. So there’s no other plan for any other changes.
Tejas Shah
Okay. No plans of divesting any of the product categories as well, is that right? Okay. So that’s it for my Tessa. Thank you and best wishes.
Operator
Thank you. We have the next question line of JM from Art Deco Asset Management. Please go ahead.
Tarun Arora
Yeah, thanks for taking my question. Firstly from the comfort click part, would it be possible to share your quarter on quarter growth rate for comfort click.
Tejas Shah
Sorry,
Tarun Arora
Your quarter on quarter growth rate for a comfort click portfolio
Tejas Shah
Year on year. We don’t do quarter on quarter. Okay. And for a comfort if I mean a core market that is UK and Europe, how are you looking at the offline channel from a two year, three, I mean two to three year perspective
Tarun Arora
With largely a online play Offline will be any optimistic if it comes. But we are not building on it.
Tejas Shah
Okay. And I mean we are entering FY27 with the margin expansion as a stated priority. In your incident, would it be possible to sell any key levers that will protect or at least
Tarun Arora
Improve margin if the commodity or the supply chain has been continued from here on?
Tejas Shah
I think the brand has good margins, the business is running on good margins and we hope to maintain
Akshay Krishnan
Those margins.
Tejas Shah
Okay. And the last piece on a glucon D recharge, I mean now we have enter into powdered electrolytes in the hydrogen segment. Any early consumer or the channel signal that it gives you confidence that recharge can fail into a material growth driver within a broader glucon LI portfolio.
Tarun Arora
Too early to discuss about it. We just rolled it out once we have time.
Tejas Shah
Okay. Okay. That’s it for my friend. Thank
Operator
You. We have the next question from the line of Harsh Dube from LFC Securities. Please go ahead.
Tejas Shah
Yeah, thank you so much. I just wanted to so just wanted to understand when we say about the operating leverage playing out on the seasonal portfolio is suppose is what I think you mean. So what are the what are the parts that like what are the segments in which you feel that there is a huge potential of the operating leverage to play out and the second thing is going forward in the medium term as well as long term, what is our aspiration on the EBITDA margin front.
Tarun Arora
As far as operating leverage is concerned it is likely to play out on the entire business ex Comfort Click because as we told earlier also that Comfort click is largely variable spend business. So apart from that operating leverage will play out as we grow more revenue.
Tejas Shah
Perfect. On the EBITDA margin, what is our aspiration? If you can just.
Tarun Arora
I I think there are no new numbers we’ve talked about. We in next couple of years we hope to get to our 1718 now we have without Comfort play. So those numbers stay and we focus on getting
Tejas Shah
Okay, perfect and on the on the just just to understand so when we said that Comfort Click is going to be EPA sector so we meant it by the end of FY27. Is is that correct?
Tarun Arora
Yeah. Yeah. So I mean we have become last quarter but for the next two years, you know we as we said we maintain our guidance.
Tejas Shah
Perfect. Thank you so much and all the best. Thank you.
Tarun Arora
Thank
Operator
You 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
Thank you and we’ll see you next quarter.
Operator
Thank you. On behalf of Zylus Wellness Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.