Zota Health Care Ltd has acquired 2,35,512 equity shares of its wholly-owned subsidiary, Davaindia Health Mart Limited, on a preferential basis for a consideration other than cash. The transaction, completed on July 17, 2026, involved the conversion of an outstanding unsecured loan along with accumulated interest into equity shares. This strategic move is expected to reduce the group's total outstanding debt on a consolidated basis and improve its overall net worth.

The cost of acquisition for the 2,35,512 equity shares was Rs. 5,075 per share, inclusive of a premium of Rs. 5,065, aggregating to a total consideration of Rs. 1,19,52,23,400. The loan conversion was based on the outstanding amounts in the books of accounts as of June 15, 2026. The acquisition does not fall within related party transactions and was conducted at arm's length, with no interest held by the promoter or group companies in the subsidiary.

Davaindia Health Mart Limited, incorporated on January 01, 2020, operates a retail generic pharmacy chain under the Company Owned Company Operated (COCO) model. As of June 30, 2026, the entity managed 1,855 stores offering over 2,000 SKUs, including medicines, ayurvedic products, cosmetics, nutraceuticals, and OTC products. The subsidiary belongs to the pharmaceutical industry and continues to remain a wholly-owned subsidiary of Zota Health Care Ltd post-acquisition.

The financial performance of Davaindia Health Mart Limited has shown significant growth over the last three fiscal years. According to the audited financial statements for FY 2025-26, the subsidiary reported a turnover of Rs. 267.71 crores, up from Rs. 109.93 crores in FY 2024-25 and Rs. 44.77 crores in FY 2023-24. The total paid-up share capital of the subsidiary stood at Rs. 2.71 crores as per the FY 2025-26 statements.

Financial Performance of Davaindia Health Mart Limited

The transaction was intimated to the National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No specific governmental or regulatory approvals were required for the completion of this acquisition.

Zota Health Care expanded its DavaIndia retail pharmacy network by opening 264 stores during Q1FY27, increasing the total operational count to 2,825. The company closed 18 stores during the period, resulting in a net addition of 246 stores from the previous base of 2,579 as on March 31, 2026.

Store Expansion Breakdown

The expansion comprised a mix of Company-Owned Company-Operated (COCO) and Franchise-Owned Franchise-Operated (FOFO) models. The following table details the movement in store count during the quarter:

COCO stores are managed by M/s Davaindia Health Mart Limited, a wholly-owned subsidiary of the company. The total store figure represents operative stores after considering all closures and relocations.