Zota Health Care LImited (ZOTA)

Healthcare · Pharmaceuticals & Biotechnology · NSE · Updated 17 July 2026

₹1,370 ↑ 13.29% (1Y)

🎯 Key Takeaways

Zota Health Care Limited is in a high-growth phase driven by aggressive retail expansion and operational scaling, transitioning from a loss-making entity to one achieving positive EBITDA and revenue growth. The company is focused on expanding its Davaindia pharmacy network through company-owned (COCO) and franchise (FOFO) models, with a strategic emphasis on store-level profitability and sustainable growth.
Revenue grew 7.2% QoQ to ₹72 in Q3FY25.
⚠️ High growth expectations priced into the stock with a negative P/E ratio, making it vulnerable to execution delays or margin compression.

Market Cap

₹4,183

P/E Ratio

-82.4

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Zota Health Care Limited is in a high-growth phase driven by aggressive retail expansion and operational scaling, transitioning from a loss-making entity to one achieving positive EBITDA and revenue growth. The company is focused on expanding its Davaindia pharmacy network through company-owned (COCO) and franchise (FOFO) models, with a strategic emphasis on store-level profitability and sustainable growth. Management is targeting 5,000+ stores by FY29, reflecting a long-term vision of scaling affordably accessible healthcare infrastructure across urban and rural India.

📰 What's Happening

In FY26, Zota reported an 84% YoY revenue surge to INR 53,865.75 lakhs, primarily fueled by Davaindia's expansion to 2,579 stores, including 997 new openings. EBITDA turned positive at INR 2,597.73 lakhs, up from negative in FY25, signaling improved operational efficiency. The company acquired an 80% stake in Globotask IT Consultancy to bolster its IT capabilities and converted a loan into equity in its subsidiary Davaindia, eliminating debt and improving net worth. Management plans to moderate expansion pace in the near term to prioritize profitability and operating efficiencies while targeting 500-700 new stores in FY27.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	37	39	45	47	50	56	67	72
Operating Profit	2	1	5	3	-1	-1	-0	-6
OPM %	2.8%	3.3%	9.8%	7.1%	-3.0%	-2.2%	-1.3%	-8.4%
Net Profit	-3	-3	-2	-3	-7	-13	-12	-19
EPS	₹-1.05	₹-1.13	₹-0.64	₹-1.14	₹-2.68	₹-4.80	₹-4.57	₹-6.80

Revenue has grown consistently over the past four quarters, rising from INR 37 lakhs in Q4FY23 to INR 72 lakhs in Q3FY25, with YoY growth accelerating to 84% in FY26. Despite rising operating expenses, EBITDA turned positive in FY26, indicating improved cost control and scalability. Operating margins remain volatile but are trending upward from negative levels in early quarters to positive in Q3FY24 and beyond, reflecting the benefits of scale and same-store growth. Net losses persist but have narrowed in later quarters, aligning with the company's focus on store-level profitability and sustainable expansion.

🔮 Management Outlook & What's Next

Management has emphasized moderate expansion in the next two quarters to focus on profitability and operating efficiencies, while targeting 5,000+ Davaindia stores by FY29. They highlighted 24% same-store growth for mature stores and plans to add 500-700 stores in FY27, with 80-90% of new stores to be COCO format. The company is prioritizing store-level profitability and sustainable expansion to enhance affordable healthcare access. No specific revenue or margin guidance was provided, but the narrative centers on scalable, profitable growth through network expansion.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Pharmaceuticals & Biotechnology

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Sun Pharmaceutical Industries Limited	4.51 L Cr	41.3	20.3%	15.1%	0.03
Divi's Laboratories Limited	1.79 L Cr	72.4	22.1%	16.6%	0.00
Torrent Pharmaceuticals Limited	1.49 L Cr	80.1	—	—	—
Cipla Limited	1.16 L Cr	25.4	19.4%	14.6%	0.00
Dr. Reddy's Laboratories Limited	1.12 L Cr	20.0	19.7%	16.6%	0.12
Lupin Limited	1.04 L Cr	36.2	—	—	—
Mankind Pharma Limited	1.03 L Cr	49.2	—	—	—
Zydus Lifesciences Limited	1.02 L Cr	22.5	—	—	—
Aurobindo Pharma Limited	87,806	25.3	—	—	—
Laurus Labs Limited	71,455	356.8	—	—	—

🔗 Peer Stock Analyses

SUNPHARMA DIVISLAB TORNTPHARM CIPLA DRREDDY

⚠️ Risk Factors

1. High growth expectations priced into the stock with a negative P/E ratio, making it vulnerable to execution delays or margin compression. 2. Expansion into new geographies and store formats carries execution and integration risks, particularly in maintaining consistent store-level profitability. 3. The company's reliance on Davaindia for the majority of revenue (77%) increases concentration risk. 4. Regulatory and operational risks in the retail pharmacy sector, including compliance with healthcare norms and supply chain dynamics, could impact scalability.

📋 Recent Filings

🧠 Analyst's Read

Zota Health Care is executing a capital-intensive, growth-oriented strategy with improving operational metrics, but the path to sustained profitability remains tied to scalable store economics and disciplined expansion. Investors should monitor same-store growth trends, EBITDA margins, and progress toward the 5,000-store target as key indicators of execution momentum.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-17.

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