Aayush Wellness - Aayush Wellness

📊 BSE: 539528 🏢 Packaged Foods 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by an extraordinary 8,645% YoY, reaching INR 73.39 Cr (7,338.59 lakhs) in FY25 compared to INR 0.84 Cr (83.92 lakhs) in FY24. While specific segment-wise percentage splits are not provided, growth was driven by the launch of nutraceuticals, herbal pan masala, and the expansion into export markets.

Geographic Revenue Split

The company is diversifying from a purely domestic focus to international markets, notably securing a US $3 million (approx. INR 25.2 Cr) export order from Singapore, which represents roughly 34% of the current annual revenue run rate. Domestic revenue is driven by pan-India distribution and e-commerce platforms like Amazon.

Profitability Margins

Net Profit Margin stood at 5% in FY25, a significant decrease from 98% in FY24. This compression is due to the transition from a low-volume, low-cost operation to a high-scale commercial model with increased marketing, distribution, and raw material costs. Net profit increased 489% in absolute terms to INR 3.37 Cr.

EBITDA Margin

EBITDA Margin was 4.6% in FY25, down from 70.8% in FY24. The sharp decline reflects the high operational costs associated with scaling revenue by over 8,000% and the introduction of mass-market products like INR 10 sachets which carry lower margins than niche offerings.

Capital Expenditure

The company has planned a capital expenditure of INR 30 Cr over the next two years to establish world-class wellness centers. Additionally, it allocated INR 5 Cr (50 million) to a Strategic Growth Division for investments in healthcare startups.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company strengthened its equity base by increasing authorized share capital from INR 3.5 Cr to INR 9 Cr during the period.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include herbal extracts for pan masala and nutraceutical ingredients for gummies (vitamins, minerals). While exact percentage of total cost is not disclosed, the shift to a 5% net margin suggests raw materials and procurement are now the primary cost drivers.

Import Sources

Not specifically disclosed, but the company operates out of New Delhi and Maharashtra, suggesting primary sourcing from Indian botanical and chemical hubs.

Capacity Expansion

The company is expanding from a product-only model to a service model by launching its own healthcare centers and wellness tourism centers (INR 30 Cr investment) to create a scalable platform for preventive care.

Raw Material Costs

Raw material costs have surged as a percentage of revenue, contributing to the drop in EBITDA margin from 70.8% to 4.6%. The company is utilizing a high-volume, mass-market strategy (INR 10 sachets) to drive penetration.

Manufacturing Efficiency

The company demonstrated the ability to scale revenue by 8,645% within a single fiscal year, indicating a highly scalable outsourced or asset-light manufacturing and distribution model.

Logistics & Distribution

The company utilizes an omni-channel strategy including Amazon for digital reach and a leading distributor in Singapore for international logistics, aiming to reduce internal logistics overhead.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved through a multi-vertical approach: 1) Export expansion via a US $3M Singapore order; 2) Product diversification into the INR 46,000 Cr pan masala market with a tobacco-free herbal alternative; 3) Launching wellness centers with an INR 30 Cr investment; and 4) Digital scaling on Amazon for nutraceuticals.

Products & Services

Herbal Pan Masala, Dreamy Sleep Gummies, Beauty Vitamin Gummies, Telemedicine services, Online Diagnostics, and Wellness Tourism packages.

Brand Portfolio

Aayush Wellness, Aayush Healthsciences, Aayush Worldwide.

New Products/Services

Recently launched Herbal Pan Masala and Healthcare centers; wellness tourism is expected to contribute to revenue over the next 24 months following the INR 30 Cr investment.

Market Expansion

Formal entry into the Singapore market (valued at USD 1.03 billion by 2033) and shifting the registered office to Maharashtra to tap into the western Indian commercial hub.

Strategic Alliances

Partnership with M/s Cosmos Holdings Pte Ltd for Singapore distribution and planned collaborations with government tourism boards for wellness centers.

🌍 External Factors

Industry Trends

The Indian health and wellness sector is growing at 5% annually. There is a structural shift from reactive treatment to preventive care, which the company is capturing through its new healthcare centers and nutraceutical range.

Competitive Landscape

Competes with established large-scale healthcare infrastructure players and emerging digital-first wellness startups.

Competitive Moat

The moat is built on a 'multi-vertical presence' blending traditional Ayurveda with modern delivery formats (gummies, sachets). This is sustainable due to the high cost for competitors to replicate an omni-channel presence spanning exports, retail, and physical wellness centers.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth (6.5% in FY25) and Private Final Consumption Expenditure (PFCE), as wellness products are discretionary consumer goods.

Consumer Behavior

Rising lifestyle-related health issues and a shift toward preventive, affordable healthcare (INR 10 sachets) are driving demand for the company's herbal alternatives.

Geopolitical Risks

Trade uncertainties and geopolitical tensions are noted as headwinds, though the company's entry into Singapore serves as a gateway to Southeast Asia to diversify geographic risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations. The company must comply with food and drug standards for its nutraceutical and herbal products in both India and Singapore.

Legal Contingencies

No pending court cases or case values were disclosed in the secretarial or auditor reports provided.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the sustainability of the 8,645% revenue growth rate and whether the 5% net profit margin can be maintained or improved as marketing costs for new products rise.