Zydus Wellness Ltd., the Ahmedabad-based FMCG player, has delivered a strong performance in the fourth quarter of FY2024-25, drawing positive reactions from investors and analysts alike. On Monday, May 19, 2025, the company’s stock climbed over 2%, riding on the back of impressive financial results, along with strategic corporate actions including a stock split and a dividend announcement.

Strong Fourth Quarter Financial Performance

Zydus Wellness posted a 15% year-on-year (YoY) increase in net profit, which rose to ₹172 crore in the March quarter of FY25. This is a significant jump from the ₹150 crore profit reported during the same quarter last year.

Revenue also witnessed solid momentum, increasing by 17% YoY to reach ₹913 crore, compared to ₹783 crore in Q4 FY24. This growth underscores the company’s robust positioning in the FMCG sector and its strong brand equity across categories such as nutraceuticals, health drinks, personal care, and wellness products.

In terms of operating performance, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) rose 17% YoY to ₹190 crore, with EBITDA margin expanding modestly to 20.80% from 20.73%. This operational efficiency reflects better cost control and strong product mix management.

First-Ever Stock Split Announced

One of the most significant developments accompanying the Q4 results is the board-approved stock split in a 1:5 ratio. This means that each existing equity share of ₹10 face value will be split into five equity shares of ₹2 each. This is the first time in the company’s history that such a move has been initiated.

The objective behind the stock split is to increase stock liquidity and make it more affordable for retail investors, especially given the stock's strong performance in recent months.

This corporate action is subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled for July 30, 2025. The company is expected to announce the record date post-approval in due course.

Dividend of ₹6 Per Share Declared

Zydus Wellness has also declared a final dividend of ₹6 per equity share, which further enhances its attractiveness to investors seeking consistent dividend-paying companies in the FMCG space.

This dividend too is subject to shareholder approval at the AGM. Once approved, it will be distributed to shareholders as per the record date to be fixed in the coming days.

Market Reaction and Share Price Performance

The market responded positively to the developments. Zydus Wellness shares were trading at ₹1,854, up 1.4% intraday on May 19, 2025, post the earnings and corporate announcements.

Over the past one month, the stock has gained nearly 7%, reflecting growing investor confidence. The upward momentum is likely to continue given the strong fundamentals and shareholder-friendly measures.

Why This Matters for Investors

1. Strong Financial Health

Zydus Wellness’ consistent revenue and profit growth reflects its robust business model and consumer-centric portfolio. The company’s ability to sustain margins while scaling operations makes it a resilient player in the FMCG sector.

2. Shareholder-Friendly Moves

The stock split will enhance affordability, while the dividend payout signals healthy cash flows and management’s commitment to shareholder returns.

3. Positive Technical Indicators

Given the recent price momentum, improved volumes post-stock split, and robust financial performance, the stock is expected to attract more retail participation in the near term.

About Zydus Wellness

Zydus Wellness Ltd. is part of the Zydus Group and is known for a portfolio of trusted brands like Complan, Sugar Free, Glucon-D, Everyuth, Nycil, and Nutralite. With a strategic focus on health and wellness, the company has built a loyal customer base in India and select international markets.

The company operates across various wellness categories and continues to focus on product innovation, distribution expansion, and sustainable profitability.

Looking Ahead

With its 17% revenue growth, first-ever stock split, and healthy dividend payout, Zydus Wellness has not only reinforced investor trust but also positioned itself for sustained growth. The AGM on July 30, 2025 will be a crucial event, as shareholders will decide on the stock split and dividend.

For retail investors and long-term holders, this could be an opportune time to monitor the stock closely for any entry point opportunities, especially as liquidity improves post-split.

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