Financial Performance Summary

Revenue Performance:

  • Consolidated Revenue from Operations: ₹17,360.23 lakhs in Q1FY27, representing 67.59% YoY growth from ₹10,358.34 lakhs in Q1FY26
  • Sequential performance: Slight increase from ₹16,317.53 lakhs in Q4FY26

Revenue Breakdown:

  • Davaindia Sales: ₹14,342.33 lakhs (82.6% of total revenue)
  • Domestic Sales: ₹1,790.67 lakhs (10.3% of total revenue)
  • Export Sales (SEZ): ₹573.51 lakhs (3.3% of total revenue)
  • Everyday Herbal Group: ₹649.42 lakhs (3.7% of total revenue)
  • Others: ₹4.30 lakhs (0.02% of total revenue)

Profitability Metrics:

  • Gross Profit: ₹10,756.00 lakhs in Q1FY27 vs ₹5,845.07 lakhs in Q1FY26
  • Gross Margin: 61.96% in Q1FY27, improved from 56.43% in Q1FY26 but declined from 63.46% in Q4FY26
  • EBITDA: Negative ₹955.40 lakhs in Q1FY27, a significant decline from positive ₹483.35 lakhs in Q1FY26 and ₹1,191.17 lakhs in Q4FY26
  • EBITDA Margin: Not calculable (negative) in Q1FY27 vs 4.67% in Q1FY26 and 7.30% in Q4FY26

Operational Metrics

Store Network Expansion (as of June 30, 2026):

  • Total Davaindia stores: 2,825
  • COCO (Company Owned Company Operated): 1,855 stores
  • FOFO (Franchise Owned Franchise Operated): 970 stores

Quarterly Operational Performance:

  • Total Quarterly Footfall: 60.00 lakhs
  • COCO stores: 44.19 lakhs footfall
  • FOFO stores: 15.81 lakhs footfall
  • Quarterly GMV: ₹16,402 lakhs
  • COCO stores: ₹11,569 lakhs GMV
  • FOFO stores: ₹4,833 lakhs GMV
  • Average Wallet Spend: ₹262 for COCO stores, ₹306 for FOFO stores

Network Changes in Q1FY27:

  • New store additions: 264 stores (201 COCO + 63 FOFO)
  • Store closures: 18 stores (2 COCO + 16 FOFO)

Strategic Initiatives and Business Highlights

Capital and Investment Activities:

  • Acquired 39,794 equity shares of wholly owned subsidiary Davaindia Health Mart Limited through rights issue
  • Continued strategic investments in subsidiaries including KMHP Ventures Limited and Curexis Ventures Private Limited to support UGO Generic and SKIA retail formats expansion
  • Acquired 80% stake in Globotask IT Consultancy Services Private Limited to support digital capabilities and technology infrastructure development

Brand and Marketing Initiatives:

  • Appointed Mr. Akshay Kumar as Brand Ambassador for Zota Health Care and UGO Generic to enhance brand visibility and strengthen consumer engagement nationwide

Management Commentary

Mr. Ketan Kumar Zota, Chairman, highlighted:

  • Strong start to FY27 building on FY26 execution achievements
  • Successful achievement of key milestones including robust revenue growth, Davaindia network expansion, improved profitability, and healthcare ecosystem strengthening
  • Network expanded to 2,825 stores as of June 30, 2026 with 264 new stores added in Q1
  • Strategic steps to deepen presence across healthcare and consumer wellness value chain
  • Enhanced stake in Everyday Herbal Beauty Care Limited supports backward integration strategy

Forward Outlook:

  • Focus remains on sustainable and disciplined growth
  • Intend to moderate pace of expansion during Q2FY27 to closely observe operating trends across newly added stores
  • Plan to assess store-level performance, improve productivity, and strengthen execution before next phase of expansion
  • Confidence in building on FY26 achievements and continuing growth journey in FY27

Company Background

Zota Health Care Limited, headquartered in Surat, has been a key player in the Indian healthcare industry since 2000. The company specializes in development, manufacturing, and marketing of pharmaceutical, ayurvedic, nutraceutical, and over-the-counter products. Operates through three main divisions: marketing, export, and retail pharmacy chain (Davaindia). Davaindia offers over 2,000 SKUs of quality medicines with a strategic business model ensuring efficient management of the entire product life cycle through backward and forward integration.