Synopsis: Zydus Wellness’ reported profit may remain under pressure, but the company is building multiple growth engines beneath the surface. From the international Comfort Click platform to the fast-scaling RiteBite business, along with innovation, digital channels, and a recovery in seasonal brands, here are the key growth drivers shaping its next phase.
Zydus Wellness may look like a company going through a noisy phase on the surface, but the Q3FY26 management commentary suggests that the bigger story is about the next leg of growth. While reported profit remains under pressure because of acquisition-related costs, the company’s revenue momentum, improving EBITDA, product expansion, digital push, and new international opportunities show that multiple growth drivers are now coming together.
The management made it clear that the current phase should not be judged only by reported losses. The company said the fall from EBITDA to profit was mainly because the Comfort Click acquisition was funded through a low-cost bridge loan, which led to finance cost of around Rs. 371 million in the quarter. On top of that, amortization of acquired brands added around Rs. 472 million, while one-time exceptional costs also affected the numbers. Even then, the company said the Comfort Click acquisition remains cash EPS accretive, which means the underlying business economics are stronger than what the reported profit currently suggests.
Comfort Click could become the biggest growth engine
A large part of the future growth story now sits with Comfort Click, the company’s international digital wellness platform. Management said the business continues to perform in line with expectations and growth is expected to come mainly from deeper penetration in existing markets, especially across Europe. The company is also trying to improve the mix towards direct-to-consumer sales, while marketplaces such as Amazon continue to remain important. Alongside this, new markets like Poland, Finland, Portugal, the U.S. and UAE are being opened up gradually.
Management also shared some useful indicators for this business. It said D2C performance has been ahead of plans, marketplace performance has largely stayed in line, repeat purchase rates on marketplaces are above 50 percent, brand ratings are above 4.6 out of 5 across markets, and market share in the countries where it operates is around 8 percent to 10 percent. These numbers suggest that the business is not only growing but also building stronger consumer loyalty. Management added that Comfort Click is expected to continue delivering good double-digit top-line growth and operate at EBITDA margins of over 14 percent.
RiteBite Max Protein is scaling up faster than expected
Another important growth driver is RiteBite Max Protein. Management said the business has significantly outperformed its own expectations since the acquisition. On a like-to-like basis, RiteBite has doubled its legacy performance and is now seeing strong traction across value and volume. The company said the brand continues to lead the protein snacking category and its EBITDA has improved from breakeven at the time of acquisition to levels approaching double-digit margins.
The growth here is coming from several levers at once. Management said the brand is seeing strong momentum in quick commerce and e-commerce, expanding into more outlets, improving sell-through in existing stores, and adding new products such as wafer bars and ready-to-drink offerings. It also said this business is following a sharper and more focused distribution model instead of simply chasing large outlet numbers. That matters because it shows RiteBite is being built through better-quality distribution, stronger repeat purchases, and better product relevance rather than just expansion for the sake of expansion.
Innovation is becoming a bigger growth lever
The company is also pushing growth through new launches and portfolio extensions. During the quarter, Nutralite Professional added Cheesy Delight and Slim Mayonnaise. Comfort Click launched four adult gummies variants, one probiotic gummies variant for kids, and Pure Himalayan Shilajit Resin. RiteBite expanded further internationally, taking its presence to nine countries within the first year. Zydus Wellness also started marketing and distributing the Cuticolor brand in organized channels, which management described as the number one doctor-prescribed brand in hair coloring.
This matters because the company is no longer relying only on a few mature brands. It is widening its play across nutrition, protein snacking, wellness supplements, and functional personal care. Management also said Complan will be relaunched and repositioned to become more relevant for modern nutrition needs, which could help revive growth in that brand over time.
Legacy brands are still contributing
Even as acquisitions get more attention, the base business still remains important. Management said volumes in Q3FY26, excluding Comfort Click, still delivered double-digit growth. Sugar Free Green recorded its 19th consecutive quarter of double-digit growth, while the overall sweetener portfolio gained 80 basis points of market share. Nutralite also delivered double-digit growth, and Everyuth continued to lead in niche subsegments despite some softness during the quarter.
The company also sees a possible recovery in seasonal brands like Glucon-D and Nycil as an important growth trigger. Management said the last season was one of the weakest in several years because of adverse weather, which hurt demand and left channel inventory under pressure. However, it also said enough corrective action has been taken to clean up inventory before the next season. More importantly, these brands carry higher-than-average margins, so a normal season can have a meaningful impact on both revenue and profitability.
Profit recovery could follow growth
While revenue growth is already visible, management believes the profit profile should improve with time. It said the base business is being worked towards 16 percent to 18 percent EBITDA margins over the next one to two years, while Comfort Click is expected to operate above 14 percent margins. The company also said the current financial year may be the bottom at the PAT level, and from next year onward, the newly acquired business should become accretive even at the profit level.
Overall, Zydus Wellness now seems to have a wider and more diversified growth platform than before. Comfort Click is opening up the international digital wellness opportunity, RiteBite is emerging as a high-growth protein snacking play, innovation is helping deepen the portfolio, digital channels are scaling, and the legacy business still has room to recover. That means the real story for investors may not be the current quarter’s profit pressure, but whether these growth engines can now sustain momentum over the next few years.
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