Zydus Wellness Share Split Explained: Why Shares Fell 80% in Trading Apps

What Happened?

On September 18, 2025, Zydus Wellness traded ex-split after shareholders approved the sub-division of its equity shares in a 1:5 ratio. This means:

• Every existing share of face value ₹10 has now been split into five shares of face value ₹2 each.

• Shareholders holding Zydus shares as of the record date (September 17, 2025) became eligible for this corporate action.

• Stock price adjusted proportionately—falling from ₹2,579.10 (previous close) to ₹522.95 (opening price).

So, while the stock appears to have dropped sharply, the overall market capitalization (~₹16,500 crore) remains intact.

Why Do Companies Go for Stock Splits?

Stock splits make shares:

• More affordable for retail investors.

• More liquid, as smaller denominations increase trading volumes.

• Attractive without diluting equity, since investors get more shares at a lower price point.

In Zydus’ case, this move is aimed at boosting participation and enhancing long-term shareholder value.

Zydus Wellness Financial Highlights

For the June 2025 quarter:

• Revenue: ₹861 crore, up 2.4% YoY.

• Net Profit: ₹128 crore, down 13.3% YoY.

• EBITDA: ₹156 crore (flat), with margins dropping to 18.1%.

Strategic Global Expansion

Adding to the momentum, Zydus Wellness recently acquired 100% stake in UK-based Comfort Click (CCL), a major player in the Vitamins, Minerals & Supplements (VMS) segment across Europe.

• Deal worth: ₹2,800 crore, valued at 2x EV/sales.

• Expected to be EPS accretive from Year 1.

• Positions Zydus as a global player in health & wellness with digital-first growth.

Brokerages like Sharekhan and Anand Rathi remain bullish, giving Buy ratings with revised targets (pre-split) in the range of ₹2,688–₹2,995.

Key Takeaways for Investors

1. The 80% fall is technical, not fundamental—due to stock split adjustment.

2. Stock splits often encourage higher participation from small investors.

3. Zydus’ international expansion into the VMS market strengthens its growth trajectory.

4. Analysts expect strong medium to long-term upside driven by global wellness demand.

Conclusion

The Zydus Wellness stock split may have confused some investors at first glance, but it is a positive corporate action designed to improve liquidity and accessibility. Combined with its overseas acquisition and steady financial performance, Zydus is positioning itself as a global health and wellness powerhouse.