Zota Health Care LImited (ZOTA)
₹1,409.30 +3.00% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Zota Health's revenue was ₹174 Cr (+66.9% year on year, +6.5% on the previous quarter), and net profit ₹-43.9 Cr (a bigger loss than a year earlier); the operating margin was -6.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹174 | +66.9% | +6.5% |
| Operating profit | ₹-11.6 | to loss | to loss |
| Net profit | ₹-43.9 | loss widened | loss widened |
| EPS (₹) | -12.58 | loss widened | loss widened |
| Operating margin | -6.7% | — | — |
ZOTA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 50.87% of the ZOTA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 54.02%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 59.5% · 59.4% · 44.8% · 42.8% · 50.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Zota Health Care reported its Davaindia store count update for Q2FY27, closing the quarter with 2,840 total operative stores as on September 30, 2026. During the quarter, the company opened 20 new stores (4 COCO and 16 FOFO) and closed 5 FOFO stores, adding a net of 15 stores compared to 2,825 stores as of June 30, 2026. Management clarified that the expansion was intentionally slowed during Q2FY27 as part of a pre-determined strategy, with plans to resume rapid store additions from Q3FY27 onwards.
- Total operative Davaindia stores stood at 2,840 as of September 30, 2026 (up from 2,825 as of June 30, 2026)
- Added 20 new stores in Q2FY27: 4 Company Owned Company Operated (COCO) and 16 Franchisee Owned Franchisee Operated (FOFO)
- Closed 5 FOFO stores and 0 COCO stores during the quarter, leading to a net addition of 15 stores
- Company expects to resume rapid store expansion starting in Q3FY27 after a deliberate slowdown
Zota Health Care has acquired 39,228 equity shares of its wholly owned subsidiary, Davaindia Health Mart Limited, through a rights issue for a total cash consideration of ₹19.91 crore. The shares were subscribed at ₹5,075 each (including a premium of ₹5,065 per share) on October 01, 2026. The investment aims to support the working capital needs of Davaindia, which operates the COCO generic pharmacy chain. Davaindia reported FY26 turnover of ₹267.71 crore and had 1,855 stores as of June 30, 2026.
- Infused ₹19.91 crore (₹19,90,82,100) by subscribing to 39,228 shares via rights issue
- Subscription price of ₹5,075 per share, including a ₹5,065 share premium
- Davaindia's turnover reached ₹267.71 crore in FY26, up from ₹109.93 crore in FY25 and ₹44.77 crore in FY24
- Network stood at 1,855 stores across 23 states and 5 UTs offering 2,000+ SKUs as of June 30, 2026
Zota Health Care has subscribed to a rights issue of its wholly owned subsidiary, Curexis Ventures Private Limited, acquiring 20,20,000 equity shares at ₹20 per share (including ₹10 premium) for ₹4.04 Cr. Curexis runs retail pharmacies under the 'SKIA' brand and reported a turnover of ₹1.18 Lakhs in FY26. The transaction is essentially an internal capital rebalancing, as proceeds will be used to repay unsecured loans taken from Zota. The transaction value is immaterial relative to Zota's TTM revenue of ₹574 Cr (<1%) and market cap of ₹4,478 Cr.
- Subscribed to 20,20,000 equity shares at ₹20 per share (aggregating to ₹4.04 Cr)
- Issue proceeds will be used by Curexis Ventures to repay outstanding unsecured loans to Zota
- Target entity reported a turnover of ₹1.18 Lakhs in FY 2025-26
- Post-acquisition, Curexis Ventures remains a 100% Wholly Owned Subsidiary
Zota Health Care has subscribed to a rights issue of its wholly owned subsidiary, Curexis Ventures Private Limited, acquiring 20,20,000 equity shares at ₹20 per share (including ₹10 premium) for ₹4.04 Cr. Curexis runs retail pharmacies under the 'SKIA' brand and reported a turnover of ₹1.18 Lakhs in FY26. The transaction is essentially an internal capital rebalancing, as proceeds will be used to repay unsecured loans taken from Zota. The transaction value is immaterial relative to Zota's TTM revenue of ₹574 Cr (<1%) and market cap of ₹4,478 Cr.
- Subscribed to 20,20,000 equity shares at ₹20 per share (aggregating to ₹4.04 Cr)
- Issue proceeds will be used by Curexis Ventures to repay outstanding unsecured loans to Zota
- Target entity reported a turnover of ₹1.18 Lakhs in FY 2025-26
- Post-acquisition, Curexis Ventures remains a 100% Wholly Owned Subsidiary
Zota Health Care has released the Scrutinizer's Report and voting results for its 26th Annual General Meeting held on September 28, 2026. Shareholders approved all 8 ordinary and special resolutions with requisite majorities, including the declaration of a 10% final dividend (Re. 1 per equity share) for FY25-26. Key management resolutions, including the re-appointment of Managing Director Moxesh Ketanbhai Zota and approval of material related party transactions, were also passed. Promoter groups were classified as interested parties and abstained from voting on resolutions 7 and 8.
- Declared final dividend of 10% i.e., Re. 1 per equity share for FY 2025-26, passed with over 99.99% votes in favor.
- Approved re-appointment of Moxesh Ketanbhai Zota as Managing Director with 98.98% votes in favor.
- Material related-party transactions with subsidiary Everyday Herbal Beauty Care approved with 97.03% votes in favor among voting non-promoters.
- Total voter turnout represented 51.08% of outstanding shares (17,691,372 votes polled out of 34,632,587 shares) on general resolutions.
Zota Health Care has issued a procedural communication regarding Tax Deducted at Source (TDS) on its recommended final dividend of Re 1 per equity share (10% on face value of Rs 10) for FY26. The record date for determining eligible shareholders was fixed as September 21, 2026. If approved at the Annual General Meeting, the dividend will be paid on or after September 30, 2026. The communication outlines TDS withholding rates, including 10% for resident individuals with valid PAN and 20% for non-residents or unlinked PAN-Aadhaar accounts.
- Final dividend recommended at 10% (Re 1 per equity share of face value Rs 10) for FY26
- Record date for dividend entitlement was September 21, 2026
- Dividend payment scheduled on or after September 30, 2026, subject to AGM approval
- Standard TDS rate of 10% for resident individuals with valid PAN; threshold exemption up to INR 10,000
- Higher TDS rate of 20% applicable for invalid PAN, non-submission, or unlinked PAN-Aadhaar
Zota Health Care has issued a response to proxy advisory firm IiAS, which recommended voting 'AGAINST' key AGM resolutions regarding promoter re-appointment, remuneration, and related party transactions (RPTs). The company clarified that cumulative promoter remuneration is capped at ₹12.00 crore per year until FY30, defending it against consolidated revenue growth of 83.86% in FY26. Zota also defended financial support to its 87.78% subsidiary, Everyday Herbal Beauty Care (EHBCL), noting that Davaindia derives around 27% of its revenue from OTC products largely manufactured by EHBCL. The AGM is scheduled for September 28, 2026.
- IiAS recommended 'AGAINST' votes on 4 resolutions, including re-appointment of MD Moxesh Zota and promoter remuneration.
- Company capped aggregate promoter remuneration across all promoter directors at ₹12.00 crore annually through FY30.
- Zota holds an 87.78% stake in subsidiary EHBCL and justified financial assistance since EHBCL lacks internal funding.
- Davaindia generates approximately 27% of its revenue from OTC products manufactured primarily by EHBCL.
- Company reported consolidated revenue growth of 83.86% YoY in FY26 and 62% YoY in FY25.
Zota Health Care Limited has informed the stock exchange regarding the cessation of Mrs. Varshabahen Gaurang Mehta as an Independent Director of the company, effective September 09, 2026. The cessation occurred pursuant to the completion of her second statutory term on the board. This is a routine governance transition with no operational disruption or disagreements reported. The company will need to ensure compliance with board composition requirements under SEBI LODR rules.
- Cessation effective date: September 09, 2026
- Reason: Natural completion of her second term as Independent Director
- Intimation submitted to stock exchange on September 18, 2026
- Director DIN: 07611561
Zota Health Care has announced its 26th Annual General Meeting (AGM) to be held on September 28, 2026, via Video Conferencing. The Board fixed September 21, 2026, as the record date for determining shareholder eligibility for e-voting and the final dividend of ₹1 per equity share (10%) for FY 2025-26. Key special resolutions include the appointment of CA Mahaveer Dhariwal as Independent Director for a 5-year term and the re-appointment of Moxesh Ketanbhai Zota as Managing Director for 5 years effective October 7, 2026.
- Final dividend declared at 10% (₹1 per equity share) for FY 2025-26.
- Record date fixed as September 21, 2026, for dividend payment and AGM voting eligibility.
- 26th AGM scheduled for Monday, September 28, 2026, at 11:00 AM via VC/OAVM.
- Remote e-voting period runs from September 25, 2026 (9:00 AM) to September 27, 2026 (5:00 PM).
- Proposed appointment of CA Mahaveer Dhariwal as Independent Director and re-appointment of MD Moxesh Zota for 5-year terms.
Zota Health Care Limited has fixed Monday, September 21, 2026, as the record date pursuant to Regulation 42 of SEBI LODR Regulations. The record date will determine shareholder eligibility for the proposed Final Dividend and participation in the 26th Annual General Meeting (AGM). The dividend payout quantum was not detailed in this specific intimation.
- Record date fixed as Monday, September 21, 2026
- Purpose of record date: Final Dividend and 26th Annual General Meeting
- Intimation filed under Regulation 42 of SEBI (LODR) Regulations, 2015
Zota Health Care Limited has appointed CA Mahaveer Dhariwal as an Additional Non-Executive Independent Director for a five-year term from September 3, 2026, to September 2, 2031, subject to shareholder approval. The company also fixed September 21, 2026, as the record date for its 26th AGM e-voting and payment of the proposed 10% final dividend (Re 1/- per equity share). Additionally, the board approved the re-appointment of Mr. Moxesh Ketanbhai Zota as Managing Director for a five-year term starting October 7, 2026.
- Appointed CA Mahaveer Dhariwal as Independent Director for a 5-year term from Sep 3, 2026 to Sep 2, 2031.
- Proposed final dividend of 10% (Re 1/- per equity share) for FY 2025-26.
- Fixed Record Date as September 21, 2026, for dividend eligibility and AGM e-voting.
- Re-appointed Mr. Moxesh Ketanbhai Zota as Managing Director for 5 years w.e.f. October 7, 2026.
Zota Health Care's Board has scheduled its 26th Annual General Meeting for September 28, 2026, via video conferencing. The company fixed September 21, 2026, as the record date for e-voting eligibility and the payment of a 10% final dividend (Rs 1.00 per share). Additionally, the Board approved the appointment of Mr. Mahaveer Dhariwal as an Independent Director and the re-appointment of Mr. Moxesh Ketanbhai Zota as Managing Director for five years starting October 7, 2026, subject to shareholder approval.
- Final dividend recommended at 10% (Rs 1.00 per equity share) for FY26
- Record date for dividend and AGM e-voting fixed as September 21, 2026
- 26th Annual General Meeting scheduled for Monday, September 28, 2026
- Appointment of Mr. Mahaveer Dhariwal as Independent Director for a 5-year term from Sep 3, 2026, to Sep 2, 2031
- Re-appointment of Mr. Moxesh Ketanbhai Zota as Managing Director for 5 years from Oct 7, 2026, to Oct 6, 2031
Zota Health Care released its Q1 FY27 earnings call transcript highlighting a 67.6% YoY jump in operational revenue to ₹173.60 Cr and a gross margin of 61.96%. The company expanded its Davaindia store network to 2,825 locations (1,855 COCO and 970 FOFO) following a net addition of 246 stores during the quarter. Quarterly customer footfalls surged to ~60 lakhs compared to ~35 lakhs in Q1 FY26, driving total GMV to ₹164.02 Cr. Management noted it will moderate store additions in Q2 FY27 to focus on store productivity before re-accelerating expansion in H2 FY27.
- Revenue from operations grew 67.6% YoY to ₹173.60 Cr (INR 17,360 lakhs) in Q1 FY27
- Gross profit stood at ₹107.56 Cr with gross margins expanding to 61.96%
- Total Davaindia store network reached 2,825 stores after adding net 246 stores (264 added, 18 closed) in Q1
- Customer footfalls increased to approximately 60 lakhs from 35 lakhs in Q1 FY26, generating ₹164.02 Cr GMV
Zota Health Care Limited has submitted the audio recording link for its earnings conference call held on August 14, 2026, regarding the financial results for the quarter ended June 30, 2026. The filing is a procedural compliance requirement under Regulation 30(6) of SEBI LODR Regulations. In the reported quarter (June 2026), the company recorded revenue of Rs 173.60 Cr and a net loss of Rs 43.94 Cr.
- Audio recording made available for the earnings call conducted on August 14, 2026
- Pertains to operational and financial performance for the quarter ended June 30, 2026
- Filing submitted in compliance with Regulation 30(6) of SEBI LODR Regulations
Zota Health Care reported a 67% YoY increase in consolidated revenue to ₹173.60 Cr for Q1FY27, primarily driven by its Davaindia retail segment which now contributes 83% of total sales. However, the company's net loss widened significantly to ₹43.94 Cr from a loss of ₹13.78 Cr in Q1FY26, impacted by high employee costs of ₹61.12 Cr and depreciation of ₹27.75 Cr. The retail footprint reached 2,825 stores with 264 additions during the quarter. Management has indicated a strategic moderation in store expansion for Q2FY27 to focus on store-level productivity and execution.
- Davaindia retail network expanded to 2,825 active stores as of June 30, 2026, including 1,855 COCO and 970 FOFO stores.
- Consolidated revenue for Q1FY27 stood at ₹173.60 Cr, a significant jump from ₹103.58 Cr in the year-ago quarter.
- Net loss for the quarter widened to ₹43.94 Cr, compared to a loss of ₹13.78 Cr in Q1FY26.
- Davaindia segment revenue grew 89.6% YoY to ₹143.42 Cr, maintaining a high gross margin of 67.4%.
- Successfully completed a ₹350 Cr QIP during the period to support growth initiatives.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 62% YoY in FY25 to INR 29,298 lakhs. The Davaindia vertical grew 80% YoY to INR 18,621 lakhs (64% of total), Domestic Sales grew 11% YoY to INR 6,342 lakhs (22% of total), and the Export Business grew 59% YoY. In Q2 FY26, consolidated revenue reached INR 12,895 lakhs, a 92% increase from INR 6,727 lakhs in Q2 FY25.
Geographic Revenue Split
Domestic operations (including Davaindia and standard domestic sales) contribute approximately 86% of total revenue (INR 24,963 lakhs in FY25), while the Export segment, operating in over 30 countries from the Sachin SEZ facility, contributes the remaining balance, having grown 59% in the last fiscal year.
Profitability Margins
Gross profit for Q2 FY26 stood at INR 7,650 lakhs, reflecting a 112% YoY growth. Gross margins for franchisee stores are structured with a 37% upfront margin, resulting in a GMV-to-revenue ratio of approximately 55%. For mature stores (3+ years), the franchisee margin adjusts to 26%.
EBITDA Margin
EBITDA turned positive in Q2 FY26 at INR 796 lakhs (approx. 6.17% margin) compared to a loss of INR 32 lakhs in Q2 FY25. This turnaround is driven by improved scale in the Davaindia vertical and disciplined cost management despite a INR 10 crore increase in other expenses.
Capital Expenditure
The company raised funds through a preferential issue in July 2024 to fund expansion. While specific total INR Cr for future CapEx is not disclosed, the company is utilizing these funds for the Davaindia rollout, with monitoring by CRISIL Ratings Limited.
Credit Rating & Borrowing
CRISIL Ratings Limited acts as the monitoring agency for fund utilization. Debt levels were reduced in FY25 compared to FY24 due to the fresh equity infusion from preferential issues, though debt service obligations increased YoY due to expansion activities.
Operational Drivers
Raw Materials
Pharmaceutical formulations and generic medicines represent the primary cost of goods sold, accounting for approximately 40-45% of revenue based on the 55% GMV-to-revenue conversion for franchisee models.
Import Sources
Not disclosed in available documents; however, the company operates a manufacturing facility in the Sachin Special Economic Zone (SEZ), Gujarat, for international formulations.
Capacity Expansion
The company aims to open 500 to 800 new stores in FY27. Current workforce stands at 3,307 employees (520 in ZOTA corporate and 2,787 in Davaindia Health Mart) to support this retail footprint expansion.
Raw Material Costs
Not explicitly disclosed as a separate line item, but gross profit growth of 112% outpaced revenue growth of 92% in Q2 FY26, suggesting improved procurement efficiencies and a higher share of high-margin generic private labels.
Manufacturing Efficiency
The company leverages its Sachin SEZ facility for global formulations, securing product approvals in over 30 countries to optimize manufacturing overheads through export volume.
Logistics & Distribution
Distribution is handled through a multi-tier intermediary system to ensure nationwide accessibility of affordable pharmaceuticals.
Strategic Growth
Expected Growth Rate
80%
Growth Strategy
Growth is driven by the aggressive expansion of the Davaindia retail chain, targeting 500-800 new stores in FY27 and a revenue target of INR 520-540 Cr for FY26. The strategy relies on onboarding high-profile brand ambassadors like M.S. Dhoni and Suniel Shetty to build trust in generic medicines and leveraging the 'Khadi' mark for brand authenticity.
Products & Services
Generic medicines, affordable healthcare solutions, and pharmaceutical formulations sold through COCO (Company Owned Company Operated) and FOFO (Franchisee Owned Franchisee Operated) retail stores.
Brand Portfolio
Davaindia, Zota Health Care.
New Products/Services
Expansion of the 'Khadi' marked product line and private label generics which typically offer higher margins than branded substitutes.
Market Expansion
Targeting Tier II and beyond, where organized pharmacy penetration is currently only 10%, compared to 28% in Metros.
Market Share & Ranking
Organized pharmacy retail is projected to grow from 10% in FY25 to 25% by FY30; Zota aims to capture this shift from the 90% unorganized market.
Strategic Alliances
Partnership with CRISIL for fund monitoring and brand associations with M.S. Dhoni and Suniel Shetty.
External Factors
Industry Trends
The industry is shifting from unorganized (90% in FY20) to organized retail (projected 25% by FY30). Zota is positioning Davaindia to capitalize on this 15% market share shift by focusing on affordability and omni-channel readiness.
Competitive Landscape
Competes with unorganized local pharmacies and emerging organized players. Zota differentiates through a 100% private label share in Davaindia stores compared to 5-20% in other organized pharmacies.
Competitive Moat
The moat is built on brand credibility (Dhoni/Shetty endorsements), the 'Khadi' mark certification, and a first-mover advantage in the large-scale generic-only retail space in India. This is sustainable due to the high cost and time required to build a 1,000+ store network.
Macro Economic Sensitivity
Highly sensitive to healthcare spending trends and the shift toward organized retail. Rising urbanization and improved digital infrastructure are cited as 10% and 5% growth drivers respectively for the organized pharmacy sector.
Consumer Behavior
Increasing consumer preference for affordable generic medicines over expensive branded alternatives, supported by government initiatives like Jan Aushadhi (PIB Source).
Geopolitical Risks
Export operations in semi-regulated and regulated markets are subject to trade barriers and changing international pharmaceutical standards.
Regulatory & Governance
Industry Regulations
Operations are governed by extensive pharmaceutical regulations in India and 30+ export countries. Compliance with manufacturing standards at the Sachin SEZ facility is critical for maintaining international product approvals.
Risk Analysis
Key Uncertainties
The 'Growth Phase' pressure: Management notes that rapid expansion (500-800 stores/year) may keep EBITDA and PAT under pressure in the short term (FY26-27) despite high revenue growth.
Geographic Concentration Risk
Heavy concentration in India, specifically Gujarat (Surat headquarters), though expanding nationally through the Davaindia vertical.
Third Party Dependencies
High dependency on FOFO partners; if franchisee profitability (currently ~INR 30,000/month) drops, store closures could accelerate.
Technology Obsolescence Risk
The company is focusing on 'Omni-channel readiness' to mitigate the risk of losing market share to e-pharmacies.
Credit & Counterparty Risk
Low risk in Davaindia due to the retail cash model, but standard domestic and export segments carry inherent credit risks from stockists and international distributors.
