Zota Health Care Limited – Investor Presentation Summary
Key Operational Highlights
- Davaindia retail pharmacy chain reached 2,579 active stores as of March 2026 (1,656 COCO stores, 923 FOFO stores)
- Added 997 new stores in FY26 (804 COCO, 193 FOFO) - highest store addition in pharma retail segment in single financial year
- Every 10 hours a new Davaindia store opens; every 5 hours new employment generated
- Davaindia portfolio contains 2,000+ SKUs focusing on medicinal, OTC, ayurvedic, cosmetic and nutraceutical products
- 60% of revenue comes from chronic disease category (cardiac, diabetic, thyroid, neuropsychiatric)
- 80% repeat customer rate demonstrating high customer loyalty
- Key drivers: Rapid store expansion, private-label generic medicines at 30-90% discounts vs branded counterparts
Segment-wise Performance
- Davaindia: Revenue ₹41,741.47 lakhs in FY26 (primary growth driver)
- Domestic Marketing: Revenue ₹6,794.29 lakhs in FY26, distributing through 1,050+ distributors across India
- Exports: Revenue ₹3,471.09 lakhs in FY26, serving 30+ countries with 325 product approvals out of 586 dossiers applications
- Everyday Herbal Group: Revenue ₹1,846.33 lakhs in FY26 (87.78% owned subsidiary)
Financial Highlights
Revenue: ₹53,865.75 lakhs (FY26 consolidated)
EBITDA: ₹2,597.73 lakhs (FY26 consolidated)
PAT: ₹-7,407.74 lakhs (FY26 consolidated loss)
Gross Profit: ₹32,468.90 lakhs
Gross Margin: 60.3% (FY26)
EBITDA Margin: 4.8% (FY26)
YoY comparison: Revenue growth 84% from FY25 (₹29,297.48 lakhs), EBITDA turned positive from negative ₹366.49 lakhs in FY25
Q4 FY26 Performance: Revenue ₹16,317.53 lakhs, EBITDA ₹1,191.17 lakhs (7.3% margin)
Drivers of financial performance: Rapid scale-up of Davaindia business, operating leverage kicking in
Key Risks: Expansion costs impacting profitability, working capital requirements
Geographical Revenue Split
Domestic vs Export Revenue:
- Domestic: Primary revenue source through Davaindia and domestic marketing operations
- Export: 30+ countries served including CIS, Latin America, Africa, and Asia regions
Balance Sheet Snapshot
As of March 31, 2026 (Consolidated):
- Total Assets: ₹113,105.14 lakhs
- Property, plant and equipment: ₹14,041.17 lakhs
- Right-of-use assets: ₹22,435.93 lakhs
- Inventories: ₹19,263.83 lakhs
- Cash and Cash Equivalents: ₹776.77 lakhs
- Equity Share Capital: ₹3,463.26 lakhs
- Other Equity: ₹65,885.67 lakhs
- Borrowings: ₹2,872.50 lakhs (current + non-current)
- Lease Liabilities: ₹24,171.44 lakhs (current + non-current)
Capex & Cash Flow Health
- Capital Work in Progress: ₹171.06 lakhs
- Intangible Assets Under Development: ₹1,375.41 lakhs
- Investment Rationale: Focus on capacity expansion, retail network growth, and backward integration
Strategic & R&D Initiatives
- Acquired 87.78% stake in Everyday Herbal Group for backward integration and OTC portfolio expansion
- OTC products constitute ~30% of SKUs and contributed 27% to FY26 revenue
- MOU with Everyday Herbal Group leverages Khadi mark licensed by KVIC
- Third-party supply chain management with central warehousing in Surat
- Focus on product registrations and Marketing Authorizations ownership in export markets
Industry Trends & Business Environment
- Growing demand for affordable generic medicines in India
- Increased focus on chronic disease management
- Expansion of retail pharmacy chains in tier 2/3 cities
Management Commentary & Growth Outlook
Strategic Outlook: "FY26 has been a defining year marked by strong execution and accelerated expansion across our Davaindia network. We intend to moderate the pace of expansion over the next two quarters, with a sharper focus on improving profitability, optimizing store performance, and enhancing operating efficiencies."
Growth Targets: Long-term vision of reaching 5,000+ Davaindia stores by FY29
Brand Ambassadors: Associated with Mr. Mahendra Singh Dhoni and Mr. Suniel Shetty for brand building
Risks and Opportunities: Focus on sustainable profitability, operating discipline, and market expansion opportunities