Zota Health Care Q2 FY27 results: net loss widens to ₹25.96 crore, revenue up 54.6%

How did Zota Health Care perform in Q2 FY27?

Zota Health Care reported consolidated revenue of ₹199.33 crore for Q2 FY27, up 54.6% from ₹128.95 crore in Q2 FY26 and 14.8% from ₹173.60 crore in Q1 FY27. Total income was ₹204.19 crore, up 56.4% year on year and 16.2% sequentially. EBITDA was ₹3.06 crore, down from ₹6.32 crore a year earlier but up from a loss of ₹11.60 crore in Q1 FY27; the margin was 1.5%, compared with 4.9% and -6.7%, respectively.

The company reported a net loss of ₹25.96 crore in Q2 FY27, compared with a net loss of ₹16.19 crore in Q2 FY26 and ₹43.94 crore in Q1 FY27. Basic EPS was -₹7.39, against -₹5.26 a year earlier and -₹12.58 in the previous quarter. On a standalone basis, revenue was ₹126.07 crore, PAT was ₹1.12 crore, and profit before tax was ₹9.91 crore.

What changed in Zota Health Care's costs and profit?

Total expenses rose 59.6% year on year to ₹231.29 crore from ₹144.96 crore. Employee cost increased ₹31.97 crore, or 83.7%, to ₹70.17 crore; depreciation rose ₹10.15 crore, or 54.8%, to ₹28.66 crore; finance costs rose ₹2.53 crore, or 66.1%, to ₹6.36 crore; and other expenses increased ₹14.73 crore, or 46.1%, to ₹46.71 crore. Cost of materials fell ₹1.34 crore, or 46.4%, to ₹1.55 crore. There was no exceptional item.

Other income rose ₹3.22 crore, or 196.3%, to ₹4.86 crore from ₹1.64 crore. Despite the higher other income, the loss before tax widened by ₹12.72 crore to ₹27.10 crore from ₹14.38 crore. Tax moved to ₹1.14 crore from ₹1.81 crore, while the net loss widened by ₹9.77 crore to ₹25.96 crore. Sequentially, other income increased ₹2.82 crore and other expenses fell ₹11.32 crore; the net loss narrowed by ₹17.98 crore.

How did the first half of FY27 go?

In H1 FY27, Zota Health Care reported revenue of ₹372.93 crore, up 60.4% from ₹232.53 crore in H1 FY26, while total income rose 61.6% to ₹379.83 crore from ₹235.04 crore. The company reported a loss before tax of ₹70.76 crore, compared with ₹27.46 crore in H1 FY26.

PAT was a loss of ₹69.90 crore in H1 FY27 against a loss of ₹29.97 crore in H1 FY26, while basic EPS was -₹19.96 compared with -₹10.14. The filing did not provide a separate explanation for the year-to-date deterioration in profit.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,093.89 crore, compared with ₹1,131.05 crore at 31 March 2026. Total equity fell to ₹627.50 crore from ₹696.17 crore, borrowings rose to ₹32.04 crore from ₹28.72 crore, and cash increased to ₹8.62 crore from ₹7.77 crore. Inventories were ₹235.28 crore against ₹192.64 crore, trade receivables were ₹84.54 crore against ₹73.52 crore, and trade payables were ₹118.52 crore against ₹104.60 crore.

For H1 FY27, operating cash flow was negative ₹51.05 crore, compared with negative ₹19.11 crore in H1 FY26. Investing cash flow was ₹68.30 crore against negative ₹72.83 crore, while financing cash flow was negative ₹35.27 crore against ₹94.63 crore. Capital expenditure was ₹22.33 crore in H1 FY27, compared with ₹36.72 crore a year earlier.

How has Zota Health Care done over the last 8 quarters?

Revenue rose in each of the last eight quarters, reaching ₹199.33 crore in Q2 FY27 from ₹72.12 crore in Q3 FY25. The period’s lowest EBITDA margin was -6.7% in Q1 FY27, while the highest was 5.3% in Q4 FY26; the margin recovered to 1.5% in Q2 FY27. The net loss was deepest at ₹43.94 crore in Q1 FY27 and narrowed to ₹25.96 crore in Q2 FY27.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review reports. Zota Health Care also filed an investor presentation on the same day, which stated that revenue had increased 55%, EBITDA had turned positive and faster store expansion was planned. The presentation noted a completed ₹350 crore QIP and Davaindia expansion to 2,840 active stores as of 30 September 2026.

What did Zota Health Care's management say?

Management said Davaindia had reached 2,840 stores and recorded quarterly GMV of ₹187.91 crore. The company expects Davaindia’s EBITDA losses to turn positive in Q4 FY27 if the recent improvement trajectory continues. It maintained the FY27 target of 600-650 stores, including 400-450 additions in H2 FY27, and set a target of 800 new store openings for FY28.

Management said gross-margin pressure could persist for another quarter, with recovery toward earlier levels over the next three to four quarters as price revisions phase in. The recently opened FY26 cohort, currently at negative 5%-7% store-level EBITDA, is expected to move progressively into positive territory over the next two quarters. Management also said annual medicine price revisions generally follow an approximately 5%-10% approach, subject to each product’s eligibility window.

Management identified input-cost inflation linked to the geopolitical situation as a gross-margin risk and said Davaindia remained division-level loss-making despite sequential improvement. It also noted that margin recovery depends on price revisions that become effective once per product per year. During the call, management said it had converted approximately ₹119.52 crore of Davaindia loans and interest into equity without fresh cash outflow.

How did Zota Health Care shares react?

Zota Health Care shares rose 4.7% on the reaction day from the pre-results close of ₹1,270.00. The move was 4.4 percentage points above the 0.4% median move for the Pharmaceuticals industry and 0.7 percentage points above the Nifty Microcap 250’s 0.7% gain. By the next day’s close, the stock was up 4.3% from the pre-results close, compared with a 0.7% fall for the industry median and a 1.9% fall for the Nifty Microcap 250.

Earlier reaction-day moves were mixed. The shares fell 9.9% on 13 August 2026, 5.5% on 22 May 2026 and 2.8% on 4 February 2026. They rose 3.3% on 17 October 2025, 0.8% on 8 August 2025 and 0.2% on 29 May 2025, before falling 3.7% on 13 February 2025 and 1.2% on 14 November 2024.

How did other Pharmaceuticals companies do?

Sixty Pharmaceuticals companies had filed for the quarter by 4 November 2026. Their median revenue growth was 18.9%, compared with Zota Health Care’s 54.6%. Of the other companies, 55 grew more slowly than Zota Health Care and five grew faster than the company.

Among the 54 peers for which profit was compared, 39 reported higher profit. Zota Health Care’s consolidated result remained a net loss of ₹25.96 crore, while the peer data records the number reporting higher profit rather than the direction of the company’s own profit change.