ZOTANSEZota Health Care LImitedMediumNeutral
Announced Wed, 4 Jun · 19:26 IST

Zota Health Care LImited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementMgmt Evaded Key QuestionInvestor Communications View source PDF

ZOTA · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Zota Health Care reported FY25 consolidated revenue of INR 292.98 crores, up 62% year-on-year, driven largely by its Davaindia generic pharmacy chain (INR 186 crores, 80% YoY growth, 64% of revenue). Export business grew 59% to INR 32 crores, domestic sales grew 11% to INR 63 crores, and the newly acquired Everyday Herbal Group contributed INR 11 crores. Gross profit rose 86% to INR 155 crores, with consolidated gross margins in the 50-53% range. Davaindia store network expanded to 1,582 stores by March 31, 2025 (1,637 by mid-May), with 901 COCO and 736 FOFO outlets; the company plans to add 800-900 more COCO stores in FY26. Q4 gross margins saw a ~500 bps dip due to one-time costs from closing 18-19 COCO stores (mostly high-rent relocations), but management expects margins to improve going forward. Cash position is strong at ~INR 200 crores (INR 220-225 crores with warrant conversion), with no near-term debt plans.

Likely market impact

Strong top-line growth and clear store-level economics (mature COCO stores generate ~INR 1.5 lakh monthly EBITDA with 24-36 month payback) support the bullish expansion story, but the 2-3 quarter pause in profitability improvement and flat EBITDA guidance for FY26 may temper near-term margin expectations for shareholders.