#EBITDA #GROWTH 5 Year CAGR10.2%
Key components for manufacturing of the companyโs products such as compressors, copper tubes, electronic parts, indoor units for split air conditioners and inverter drives are sourced from vendors in China and vendors in India. This is mitigated by diversifying procurement sources along with backward integration at plant. Better product mix, coupled with planned procurement of inventories helped to partially mitigate the increased cost of commodity prices and higher logistics costs. In FY25, the EBITDA was โน1,116 cr up by 135% YoY. This was majorly due to higher cost escalations and higher losses in the EMP segment.
Key components for manufacturing of the companyโs products such as compressors, copper tubes, electronic parts, indoor units for split air conditioners and inverter drives are sourced from vendors in China and vendors in India. This is mitigated by diversifying procurement sources along with backward integration at plant. Better product mix, coupled with planned procurement of inventories helped to partially mitigate the increased cost of commodity prices and higher logistics costs. In FY25, the EBITDA was โน1,116 cr up by 135% YoY. This was majorly due to higher cost escalations and higher losses in the EMP segment.
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#PAT #GROWTH
In FY25, the company recorded PBT at โน1,317 cr. The consolidated PAT registered was โน960.3 cr which includes loss of share associates of ~โน126 cr. Results of Q3 FY23 and Q2 FY23 included provisions amounting to โน137.4cr and โน106.4 cr respectively which was made due to the termination of a contract and encashment of bank guarantees for two overseas projects in Dubai and Qatar, respectively. The necessary legal steps has been taken to recover the money. They had received arbitration award in their favor related to this encashment as informed in Q1 FY25.
In FY25, the company recorded PBT at โน1,317 cr. The consolidated PAT registered was โน960.3 cr which includes loss of share associates of ~โน126 cr. Results of Q3 FY23 and Q2 FY23 included provisions amounting to โน137.4cr and โน106.4 cr respectively which was made due to the termination of a contract and encashment of bank guarantees for two overseas projects in Dubai and Qatar, respectively. The necessary legal steps has been taken to recover the money. They had received arbitration award in their favor related to this encashment as informed in Q1 FY25.
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#EBITDA #MARGIN
In FY25, EBITDA margin was 7.24% and segmental EBIT margin for Electro-Mechanical Projects and services was 4%, Unitary products at 8.4% and Engineering Products & Services at 27%. The company reported positive EBIT in the ElectroMechanical Projects & services in FY25 after FY22. This was mainly due to improved order booking, better project execution and working capital management.
In FY25, EBITDA margin was 7.24% and segmental EBIT margin for Electro-Mechanical Projects and services was 4%, Unitary products at 8.4% and Engineering Products & Services at 27%. The company reported positive EBIT in the ElectroMechanical Projects & services in FY25 after FY22. This was mainly due to improved order booking, better project execution and working capital management.
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#ROCE
In FY25, PBIT for the year was โน1,253 cr and the capital employed was at โน7,102 cr. The ROCE stood at ~18%. CASE STUDY
In FY25, PBIT for the year was โน1,253 cr and the capital employed was at โน7,102 cr. The ROCE stood at ~18%. CASE STUDY
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#MANAGEMENT
The management is led by Mr. Noel N Tata. He is also Chairman of Trent Limited and Tata Investment Corporation Limited and Vice Chairman of Titan Company Limited and Tata Steel Limited. His knowledge of Retail business is humongous and has aspired the company grow in consumer products significantly. Mr. Pradeep Bakshi, Managing Director & CEO of the company has around 39 years of experience in consumer appliances domain and his vast expertise and experience in the appliances domain makes him a distinct professional. Under his able leadership, Voltas has consistently grown in revenue and profitability, ahead of the AC Industry. Voltas achieved leadership position in market share of room air conditioners.
The management is led by Mr. Noel N Tata. He is also Chairman of Trent Limited and Tata Investment Corporation Limited and Vice Chairman of Titan Company Limited and Tata Steel Limited. His knowledge of Retail business is humongous and has aspired the company grow in consumer products significantly. Mr. Pradeep Bakshi, Managing Director & CEO of the company has around 39 years of experience in consumer appliances domain and his vast expertise and experience in the appliances domain makes him a distinct professional. Under his able leadership, Voltas has consistently grown in revenue and profitability, ahead of the AC Industry. Voltas achieved leadership position in market share of room air conditioners.
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#COMPANY #POTENTIAL
โข Indiaโs consumer durables industry is experiencing rapid growth and is currently the fastest-growing major market globally. It is projected to become the fourth-largest market by 2026โ27, with an estimated market size of โน3 lakh crore by 2028โ29. โข The Water Heater segment thrives in the Indian market, with an annual demand of approximately 5 million units. The segment has experienced consistent growth of 10-12% year-on-year (YOY), with a selling window of almost 10 months in a year. โข Room Air Conditioner (RAC) penetration in India currently stands at 10%, but the market is witnessing rapid growth. Valued at approximately โน37,000 crore (USD 4.33 billion) in FY24, the RAC segment is growing at a CAGR of 19.9% and is expected to reach around โน91,000 crore (USD 10.65 billion) by FY29. โข The Indian RAC market saw volumes rise from 8.4 million units in FY23 to 10 million units in FY24. The industry anticipates that total AC volumes will grow from the current 1.3โ1.4 crore units (FY25) to 3โ3.5 crore units over the next five years. โข The Indian Commercial Air Conditioning industry is valued at ~โน8,000 crore, it is projected to grow at a CAGR of ~12%. โข Commercial Refrigeration market has a potential to grow at 30% because India is underpenetrated in the same. Whereas commercial air conditioning products should grow at a CAGR of 12%-12.5% as per the management of the company. โข The commercial refrigeration market size was valued at โน4,033 crores in 2019-20 and is projected to reach โน8,022 crores in 202627, registering a CAGR of 10%. Increase in demand for frozen products among the consumers due to change in lifestyle and rapid urbanization, combined with growth in the organized retail sector with increase in number of hypermarkets/supermarkets is expected to drive demand for commercial refrigeration products. โข Indiaโs domestic textile and apparel market is projected to reach USD 190 billion by 2025โ26, while exports are expected to touch USD 100 billion by 2030. TMDโs growth strategy centers on expanding its aftersales services and entering new markets like CASE STUDY Bangladesh, Sri Lanka, and Africa, with a continued emphasis on sustainable and automated solutions.
โข Indiaโs consumer durables industry is experiencing rapid growth and is currently the fastest-growing major market globally. It is projected to become the fourth-largest market by 2026โ27, with an estimated market size of โน3 lakh crore by 2028โ29. โข The Water Heater segment thrives in the Indian market, with an annual demand of approximately 5 million units. The segment has experienced consistent growth of 10-12% year-on-year (YOY), with a selling window of almost 10 months in a year. โข Room Air Conditioner (RAC) penetration in India currently stands at 10%, but the market is witnessing rapid growth. Valued at approximately โน37,000 crore (USD 4.33 billion) in FY24, the RAC segment is growing at a CAGR of 19.9% and is expected to reach around โน91,000 crore (USD 10.65 billion) by FY29. โข The Indian RAC market saw volumes rise from 8.4 million units in FY23 to 10 million units in FY24. The industry anticipates that total AC volumes will grow from the current 1.3โ1.4 crore units (FY25) to 3โ3.5 crore units over the next five years. โข The Indian Commercial Air Conditioning industry is valued at ~โน8,000 crore, it is projected to grow at a CAGR of ~12%. โข Commercial Refrigeration market has a potential to grow at 30% because India is underpenetrated in the same. Whereas commercial air conditioning products should grow at a CAGR of 12%-12.5% as per the management of the company. โข The commercial refrigeration market size was valued at โน4,033 crores in 2019-20 and is projected to reach โน8,022 crores in 202627, registering a CAGR of 10%. Increase in demand for frozen products among the consumers due to change in lifestyle and rapid urbanization, combined with growth in the organized retail sector with increase in number of hypermarkets/supermarkets is expected to drive demand for commercial refrigeration products. โข Indiaโs domestic textile and apparel market is projected to reach USD 190 billion by 2025โ26, while exports are expected to touch USD 100 billion by 2030. TMDโs growth strategy centers on expanding its aftersales services and entering new markets like CASE STUDY Bangladesh, Sri Lanka, and Africa, with a continued emphasis on sustainable and automated solutions.
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#FUTURE #OUTLOOK
โข The company aims to enhance market share in its core categories by deepening distribution and accelerating product innovation to meet evolving customer needs. It plans to continue its focus on energy efficient and IoT โ enabled cooling solutions. โข Voltbek, the home appliances JV, is set to expand capacity by 50% at its Sanand plant to boost 'Made-in-India' production, especially refrigerators. Future include launching new Frost-Free and Direct-Cool models, expanding its SDA range, strengthening in-store presence, introducing digital-first products for e-commerce, and promoting dishwashers with India-focused awareness campaigns. The company also aims to improve operational efficiency and grow market share in washing machines. โข As of YTD February 2025, the companyโs market share rose to 8.7% in washing machines and 5.3% in refrigerators, with a strong 15.3% share in the semi-automatic washing machine segmentโmaking it the second-largest player in that category. It sold over 1 envisaged to accrue from FY26. million units across refrigerators and washing machines, achieving 56% volume growth for the year ended 31st March 2025 and emerged as the fastest-growing electrical appliances company in the country. โข Both commercial air conditioning and commercial refrigeration segment is envisaged to do well as there is demand for cold chain products, increase in commercial offices, airports, group companyโs shops, etc. It envisages double digit growth for this category. โข The company believes in the merits of backward integration of certain products like Heat Exchanger, Cross Flow Fan and Plastic components, and had applied to avail the Produ
โข The company aims to enhance market share in its core categories by deepening distribution and accelerating product innovation to meet evolving customer needs. It plans to continue its focus on energy efficient and IoT โ enabled cooling solutions. โข Voltbek, the home appliances JV, is set to expand capacity by 50% at its Sanand plant to boost 'Made-in-India' production, especially refrigerators. Future include launching new Frost-Free and Direct-Cool models, expanding its SDA range, strengthening in-store presence, introducing digital-first products for e-commerce, and promoting dishwashers with India-focused awareness campaigns. The company also aims to improve operational efficiency and grow market share in washing machines. โข As of YTD February 2025, the companyโs market share rose to 8.7% in washing machines and 5.3% in refrigerators, with a strong 15.3% share in the semi-automatic washing machine segmentโmaking it the second-largest player in that category. It sold over 1 envisaged to accrue from FY26. million units across refrigerators and washing machines, achieving 56% volume growth for the year ended 31st March 2025 and emerged as the fastest-growing electrical appliances company in the country. โข Both commercial air conditioning and commercial refrigeration segment is envisaged to do well as there is demand for cold chain products, increase in commercial offices, airports, group companyโs shops, etc. It envisages double digit growth for this category. โข The company believes in the merits of backward integration of certain products like Heat Exchanger, Cross Flow Fan and Plastic components, and had applied to avail the Produ
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Voltas 1200-1280
Expected level 1500
Support 1044
Expected level 1500
Support 1044
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Zydus Wellness Limited Company Details Report
Zydus Wellness Limited Established in 1988, Zydus Wellness Limited, a subsidiary of the pharmaceutical company, Zydus Lifesciences formerly known as Cadila Healthcare is a leading consumer wellness company. The company enjoys a pan-India marketing presence through a distribution network which comprises of over 1,950 distributors and has five subsidiaries. Currently, the company has four manufacturing units: one each at Gujrat, Uttar Pradesh and two at Sikkim. Its distribution has been facilitated by investment in 25 integrated warehouses, which can serve both its cold chain and ambient range of brands. The product portfolio includes flagship brands like Sugar Free, Everyuth, Nutralite, Sugarlite and acquired brands like Glucon D, Complan, Nycil and Sampriti Ghee. In FY19, the company entered into a share purchase agreement jointly with Cadila Healthcare Limited to acquire 100% shareholding of Heinz India Private Limited (a subsidiary of Kraftz Heinz) for โน4,667 cr. During the year, the company expanded its footprint in international markets such as Hongkong, Lebanon, Zimbabwe, Muscat, Ethiopia & Australia and launched new products under the sugar free category (Sugar free Dโlite cookies and sugar free Dโlite chocolate spread). The key highlight during FY25 was the acquisition of Naturell (India) Private Limited, involved in the business of manufacturing, R&D, marketing & selling of nutrition bars, cookies, chips and other food products under the brands Ritebite Max Protein and Ritebite (fiber-enriched snacks). Cost of acquisition was โน390 cr and revenue for this brand during FY24 stood at ~โน119 cr.
Zydus Wellness Limited Established in 1988, Zydus Wellness Limited, a subsidiary of the pharmaceutical company, Zydus Lifesciences formerly known as Cadila Healthcare is a leading consumer wellness company. The company enjoys a pan-India marketing presence through a distribution network which comprises of over 1,950 distributors and has five subsidiaries. Currently, the company has four manufacturing units: one each at Gujrat, Uttar Pradesh and two at Sikkim. Its distribution has been facilitated by investment in 25 integrated warehouses, which can serve both its cold chain and ambient range of brands. The product portfolio includes flagship brands like Sugar Free, Everyuth, Nutralite, Sugarlite and acquired brands like Glucon D, Complan, Nycil and Sampriti Ghee. In FY19, the company entered into a share purchase agreement jointly with Cadila Healthcare Limited to acquire 100% shareholding of Heinz India Private Limited (a subsidiary of Kraftz Heinz) for โน4,667 cr. During the year, the company expanded its footprint in international markets such as Hongkong, Lebanon, Zimbabwe, Muscat, Ethiopia & Australia and launched new products under the sugar free category (Sugar free Dโlite cookies and sugar free Dโlite chocolate spread). The key highlight during FY25 was the acquisition of Naturell (India) Private Limited, involved in the business of manufacturing, R&D, marketing & selling of nutrition bars, cookies, chips and other food products under the brands Ritebite Max Protein and Ritebite (fiber-enriched snacks). Cost of acquisition was โน390 cr and revenue for this brand during FY24 stood at ~โน119 cr.
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#SALES #GROWTH
FY25 includes the results of Naturell (India) Private Limited for four months. Post consolidation, the business is progressing as planned. In FY25, sales grew by ~16% YoY to โน2,709 cr, led by a volume growth of ~12%. Segment-wise, personal care witnessed a growth of ~33%, led by strong consumer traction. Whereas the food & nutrition segment posted a growth of ~13%, supported by category expansions, product innovations and acquisitions. Rural markets continued to grow at a faster pace than urban areas, though the gap is slowly narrowing as urban markets begin to recover. It launched 12 new products during the period.
FY25 includes the results of Naturell (India) Private Limited for four months. Post consolidation, the business is progressing as planned. In FY25, sales grew by ~16% YoY to โน2,709 cr, led by a volume growth of ~12%. Segment-wise, personal care witnessed a growth of ~33%, led by strong consumer traction. Whereas the food & nutrition segment posted a growth of ~13%, supported by category expansions, product innovations and acquisitions. Rural markets continued to grow at a faster pace than urban areas, though the gap is slowly narrowing as urban markets begin to recover. It launched 12 new products during the period.
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#EBITDA #GROWTH
In FY25, EBITDA grew by ~23% YoY to โน380 cr, led by improvements in the gross profit and rise in volumes. During the period, other expenses grew by ~18% YoY, majorly owing to cost of strategy consultant and other expenditures aligned with evolving business requirements. Major expenses for the company during FY25 constituted cost of materials consumed 43.7%, other expenses 17% (majorly towards advertisement & marketing expense, power & fuel and labor charges) and A&P spends 13.1%.
In FY25, EBITDA grew by ~23% YoY to โน380 cr, led by improvements in the gross profit and rise in volumes. During the period, other expenses grew by ~18% YoY, majorly owing to cost of strategy consultant and other expenditures aligned with evolving business requirements. Major expenses for the company during FY25 constituted cost of materials consumed 43.7%, other expenses 17% (majorly towards advertisement & marketing expense, power & fuel and labor charges) and A&P spends 13.1%.
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#PAT #GROWTH
In FY25, PAT rose by ~30% YoY to โน347 cr, supported by lower finance costs due to decreasing working capital loans. The period included an exceptional item of ~โน6 cr, recorded during Q2 FY25 towards the sale of Equals Two brand, including the trademark to Zydus LifeSciences Ltd (The Parent Company). Excluding this impact, the same grew by ~21% to โน341 cr. The company had tax benefits due to accumulated losses in tax book, section 80I benefit related to two of its manufacturing units in Sikkim and had MAT credits available to them. 5 Year CAGR: 19.6%
In FY25, PAT rose by ~30% YoY to โน347 cr, supported by lower finance costs due to decreasing working capital loans. The period included an exceptional item of ~โน6 cr, recorded during Q2 FY25 towards the sale of Equals Two brand, including the trademark to Zydus LifeSciences Ltd (The Parent Company). Excluding this impact, the same grew by ~21% to โน341 cr. The company had tax benefits due to accumulated losses in tax book, section 80I benefit related to two of its manufacturing units in Sikkim and had MAT credits available to them. 5 Year CAGR: 19.6%
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#EBITDA #MARGIN
The raw materials used by the company includes milk, DMH (dextrose monohydrate) and Aspartame (artificial sweetener used in variety of food applications). However, easing food inflation is contributing to a decline in the overall inflation. It experienced a gradual reduction in the prices of key inputs such as milk, sucralose and stevia; however, volatility in the prices of edible oil and dextrose monohydrate remains a key concern. In FY25, EBITDA margin expanded by ~78 bps YoY to 14%, supported by gross margin expansion of ~172 bps YoY on account of operational efficiencies, calibrated price increase, effective hedging strategy and favorable product mix, which was further reinvested in brand building, resulting in a ~19% YoY growth in the A&P expenses, during the period.
The raw materials used by the company includes milk, DMH (dextrose monohydrate) and Aspartame (artificial sweetener used in variety of food applications). However, easing food inflation is contributing to a decline in the overall inflation. It experienced a gradual reduction in the prices of key inputs such as milk, sucralose and stevia; however, volatility in the prices of edible oil and dextrose monohydrate remains a key concern. In FY25, EBITDA margin expanded by ~78 bps YoY to 14%, supported by gross margin expansion of ~172 bps YoY on account of operational efficiencies, calibrated price increase, effective hedging strategy and favorable product mix, which was further reinvested in brand building, resulting in a ~19% YoY growth in the A&P expenses, during the period.
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#ROCE
In FY25, ROCE for the company rose to 6.43%, owing to rising profitability. The reduction in ROCE after FY19 is on account of change in the companyโs capital structure due to issuance of fresh equity of โน2,575 cr and funds borrowed in the form of non-convertible debentures of โน1,500 cr which were used to fund the acquisition of Heinz India Private Ltd.
In FY25, ROCE for the company rose to 6.43%, owing to rising profitability. The reduction in ROCE after FY19 is on account of change in the companyโs capital structure due to issuance of fresh equity of โน2,575 cr and funds borrowed in the form of non-convertible debentures of โน1,500 cr which were used to fund the acquisition of Heinz India Private Ltd.
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#ROE
In FY25, ROE for the company increased to 6.29%, owing to rise in net profit. The increase in the net worth post acquisition was on account of capital restructure as the company raised ~โน1,000 cr through QIP (Qualified Institutional Placement) in FY21.
In FY25, ROE for the company increased to 6.29%, owing to rise in net profit. The increase in the net worth post acquisition was on account of capital restructure as the company raised ~โน1,000 cr through QIP (Qualified Institutional Placement) in FY21.
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#MANAGEMENT
Tarun Arora is the CEO and the whole-time director of the company, having expertise towards finance, marketing & has worked with various FMCG companies. Dr. Sharvil P Patel, the chairman of the company who is also the managing director of its parent company, Zydus Lifesciences Ltd has an expertise towards chemical & pharmaceutical science. With the softening of raw material prices, they are targeting towards the growth path, providing flexibility for brand investments which would aid volume and sales growth. Growth in e-commerce and modern trade is likely to boost sales. To build its international business, the company entered new markets and enhanced its portfolio with the launch of Nutralite. The company would also be expanding Nutralite to more countries along with developing new products exclusively for international markets. The company is working on distribution expansion in organized channels to drive its market share growth.
Tarun Arora is the CEO and the whole-time director of the company, having expertise towards finance, marketing & has worked with various FMCG companies. Dr. Sharvil P Patel, the chairman of the company who is also the managing director of its parent company, Zydus Lifesciences Ltd has an expertise towards chemical & pharmaceutical science. With the softening of raw material prices, they are targeting towards the growth path, providing flexibility for brand investments which would aid volume and sales growth. Growth in e-commerce and modern trade is likely to boost sales. To build its international business, the company entered new markets and enhanced its portfolio with the launch of Nutralite. The company would also be expanding Nutralite to more countries along with developing new products exclusively for international markets. The company is working on distribution expansion in organized channels to drive its market share growth.
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#COMPANY #POTENTIAL
โข The FMCG sector experienced a strong recovery in 2025 after a challenging post-festive period, marked by inflation and high inventory levels. Retailers, focused on clearing out excess stock, delayed new billings into late 2024. Demand for FMCG products surged in January 2025 and February 2025, driven by an early summer and an increase in demand for premium products. The January-March quarter saw a robust rebound, with ~12% growth. โข Inflationary pressures eased significantly during the year, attributable to a sharp correction in food prices, led by a seasonal drop in vegetable prices during the winter months, followed by a continuous drop in pulse prices. โข As per MAT March 2025, the overall FMCG market in India (Urban and Rural) grew by 9% in value, 6% in volume and observed a 3% increase in the household penetration, while Zydus Wellness outperformed on all these fronts. This momentum is reflected in the smaller unit packs, indicating increased accessibility in consumption at the grassroot level. quarters. โข The overall industry is expected to witness a gradual uptick, driven by expectations of good monsoons, moderation in food inflation and recovery of urban growth. With sustained cost inflation, companies are likely to take price increases in the upcoming โข One important factor that would boost the growth of the FMCG sector soon is digitization and increasing use of online platforms. Over the next decade, there will be greater play of mobile analytics, artificial intelligence and cloud technology, which will help the FMCG sector to transform and drive the next phase of growth. โข E-commerce segment contributed ~8% during the year and is forecasted to contribute ~11% to the overall FMCG sales by 2030.. Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.
โข The FMCG sector experienced a strong recovery in 2025 after a challenging post-festive period, marked by inflation and high inventory levels. Retailers, focused on clearing out excess stock, delayed new billings into late 2024. Demand for FMCG products surged in January 2025 and February 2025, driven by an early summer and an increase in demand for premium products. The January-March quarter saw a robust rebound, with ~12% growth. โข Inflationary pressures eased significantly during the year, attributable to a sharp correction in food prices, led by a seasonal drop in vegetable prices during the winter months, followed by a continuous drop in pulse prices. โข As per MAT March 2025, the overall FMCG market in India (Urban and Rural) grew by 9% in value, 6% in volume and observed a 3% increase in the household penetration, while Zydus Wellness outperformed on all these fronts. This momentum is reflected in the smaller unit packs, indicating increased accessibility in consumption at the grassroot level. quarters. โข The overall industry is expected to witness a gradual uptick, driven by expectations of good monsoons, moderation in food inflation and recovery of urban growth. With sustained cost inflation, companies are likely to take price increases in the upcoming โข One important factor that would boost the growth of the FMCG sector soon is digitization and increasing use of online platforms. Over the next decade, there will be greater play of mobile analytics, artificial intelligence and cloud technology, which will help the FMCG sector to transform and drive the next phase of growth. โข E-commerce segment contributed ~8% during the year and is forecasted to contribute ~11% to the overall FMCG sales by 2030.. Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.
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