BSEZenith Healthcare LtdHighNeutral
Announced Fri, 29 May · 16:55 IST

Standalone Audited Financial Result for the Quarter and Year ended on 31.03.2026

Pat NegativeEbitda Margin CompressionRelated Party TransactionsNegative Operating CashflowResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

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AI summary

Zenith Healthcare Ltd reported weak FY26 results with profit before tax crashing 94% to Rs 1.60 lakhs from Rs 27.92 lakhs in FY25. Profit after tax similarly collapsed to around Rs 1.50 lakhs from Rs 20.94 lakhs. The company faced severe margin compression with EBITDA margin contracting to approximately 10.4% from 19.9% the prior year, driven by rising raw material costs (Rs 161.01 lakhs in Q4 alone) and increased other expenses. Operating cash flow turned negative at Rs 83.40 lakhs versus positive Rs 55.44 lakhs in FY25, due to significant build-up of inventories (Rs 65.38 lakhs) and other current assets (Rs 81.69 lakhs). Revenue showed marginal growth with total income of Rs 271.83 lakhs in Q4. The board also approved appointment of Mr. Akshit Mahendra Raycha as Joint Managing Director and noted related party transactions with entities connected to the promoter family.

Likely market impact

The sharp 94% decline in profitability and negative operating cash flow are serious red flags for shareholders. Despite flat revenue growth, costs surged eating into margins. The company needs to demonstrate cost control measures and cash flow improvement to restore investor confidence.