The document contains the transcript of an earnings conference call held on October 29, 2026, to discuss the operational and financial performance for the quarter ended September 30, 2026 (Q2 FY27).
The call was hosted by the company and moderated by Mr. Ajit Mishra from Ernst & Young LLP.
Management participants included Mr. Himanshu Zota (Founder and Whole Time Director), Mr. Moxesh Zota (Managing Director), and Dr. Sujit Paul (Group Chief Executive Officer).
The transcript was filed with the National Stock Exchange of India Limited on November 03, 2026, under Regulation 30(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The transcript is available on the company's website at the provided link.
Financial Highlights from Call Discussion
Revenue Performance: Consolidated revenue from operations stood at ₹199.33 crore for Q2 FY27, registering a growth of 54.6% compared to ₹128.95 crore in Q2 FY26. Sequentially, revenue grew by approximately 14.8%.
Profitability: Consolidated EBITDA turned positive at ₹7.92 crore (EBITDA margin of 3.97%), compared to a negative EBITDA of ₹9.55 crore in Q1 FY27. The company reported a consolidated loss after tax of ₹25.96 crore for the quarter.
Gross Margin: Gross profit was ₹119.94 crore, with a gross margin of 60.17%, higher than the 59.33% reported in Q2 FY26.
Davaindia Performance: Sales from Davaindia increased by 76.3% YoY to ₹168.47 crore, contributing 82% of total consolidated revenue. Davaindia's quarterly GMV increased to approximately ₹187.91 crore from ₹105.98 crore in Q2 FY26.
Store Network: The Davaindia network reached 2,840 stores as of September 30, 2026 (1,859 COCO stores and 981 FOFO stores). The company added 20 new stores (4 COCO, 16 FOFO) and closed 5 FOFO stores during the quarter.
Customer Metrics: Quarterly customer footfalls increased to 66.17 lakh from 43.53 lakh in Q2 FY26. The average wallet spend in COCO stores improved to ₹283 from ₹229 in Q2 FY26.
Store Cohort Performance:
Stores opened between FY2021-FY2024: Average monthly GMV per store of ₹4.60 lakh (vs ₹4.13 lakh in Q1 FY27)
Stores opened during FY2024-FY2025: Average monthly GMV per store of ₹2.59 lakh (vs ₹2.28 lakh in Q1 FY27)
29 oldest stores (54+ months): Average monthly GMV per store reached ~₹8 lakh
Capital Structure: The company converted approximately ₹119.52 crore of outstanding unsecured loans and accumulated interest receivable from Davaindia Health Mart Limited into equity.
Management Commentary & Outlook
Growth Strategy: The company moderated store expansion in Q2 to focus on consolidating the existing network but plans to accelerate additions in H2 FY27, targeting 400-450 new stores. The full-year target remains 600-650 store openings, with 800 planned for FY28.
Profitability Outlook: Management expects Davaindia EBITDA to turn positive by Q4 FY27. Store-level EBITDA for mature stores (54+ months) is 35%-38%, while stores opened between FY21-FY24 generate 12%-15% store-level EBITDA.
Marketing Strategy: Marketing spend reduced to ₹8-9 crore in Q2 from ₹17-18 crore in Q1, focusing on BTL activities and social media (Instagram, YouTube, Facebook) rather than ATL campaigns.
Margin Pressure: Gross margins faced pressure due to increased input costs from geopolitical situations. Price increases of 5%-10% are taken annually as per regulatory guidelines, with benefits expected to materialize over the next 3-4 quarters.
Format Strategy: The company operates Davaindia and SKIA formats to capture different market segments, with no immediate cannibalization concerns given the large unorganized pharmacy market (18-19 lakh stores nationwide).
Additional Notes
The document is a regulatory filing containing the earnings call transcript, with no separate attachments mentioned.
The call included forward-looking statements with inherent risks and uncertainties.
The company emphasized that no unpublished price sensitive information (UPSI) was shared during the call.
