Zota Health Care reports FY26 revenue of INR 53,865 lakhs
Zota Health Care Limited released the transcript for its Q4FY26 earnings call, reporting a consolidated revenue of INR 53,865 lakhs for FY26, an 83.86% increase. The Davaindia segment contributed INR 41,741 lakhs, nearly doubling year-on-year. The company achieved positive EBITDA of INR 2,597 lakhs with a margin of 4.82% and expanded its gross margin to 60.28%. Operational highlights include the addition of 997 new stores, bringing the total count to 2,579, and strong same-store growth across mature cohorts. Strategic moves included a INR 350 crores QIP and increasing stake in Everyday Herbal Beauty Care Limited to 87.78%.
*this image is generated using AI for illustrative purposes only.
[Zota Health Care Limited](zota healthcare) has released the transcript of its earnings conference call for the fourth quarter and financial year ended March 31, 2026. The company reported a robust financial performance for the year, driven by the expansion of its Davaindia retail network and improved operational leverage. Consolidated revenue from operations for FY26 stood at INR 53,865 lakhs, registering a year-on-year growth of 83.86%. The Davaindia business emerged as the primary growth engine, with sales growing more than double to INR 41,741 lakhs.
Financial Performance Highlights
The company achieved a significant turnaround at the operating level in FY26, reporting positive EBITDA of INR 2,597 lakhs compared to a negative EBITDA in the previous year. The EBITDA margin improved to 4.82% for the full year. On a quarterly basis, Q4FY26 EBITDA stood at INR 1,191 lakhs with a margin of 7.3%. Gross profit increased to INR 32,468 lakhs, a growth of over 108% year-on-year, while the gross margin expanded by 714 basis points to 60.28%.
| Metric | FY26 Value | YoY Growth |
|---|---|---|
| Consolidated Revenue | INR 53,865 lakhs | 83.86% |
| Davaindia Sales | INR 41,741 lakhs | ~100% |
| Gross Profit | INR 32,468 lakhs | >108% |
| Gross Margin | 60.28% | +714 bps |
| EBITDA | INR 2,597 lakhs | Turned Positive |
| EBITDA Margin | 4.82% | Improved |
Operational Expansion
During FY26, the company added 997 new Davaindia stores, comprising 804 Company-Owned Company-Operated (COCO) stores and 193 Franchisee-Owned Franchisee-Operated (FOFO) stores. This expansion took the total network to 2,579 stores nationwide. The company reported strong same-store growth (SSG), with stores operational as of March 2025 delivering overall SSG of over 40%. Stores aged 24 months and above recorded SSG of 35% to 40%, while those aged 12 to 24 months achieved SSG of 55% to 60%.
Strategic Initiatives and Outlook
Zota Health Care completed a Qualified Institutional Placement (QIP) of INR 350 crores to strengthen its balance sheet. The company increased its stake in Everyday Herbal Beauty Care Limited to 87.78% to reinforce backward integration. Looking ahead, the management plans to open 500 to 700 stores in FY27, with a focus on improving store-level profitability and operational efficiency. The company remains confident in its long-term vision of scaling to over 5,000 Davaindia stores by FY29.
The disclosure was submitted to The National Stock Exchange of India Limited in compliance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ashvin Variya, Company Secretary & Compliance Officer, signed the disclosure.
Historical Stock Returns for Zota Healthcare
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.11% | +1.35% | +1.04% | -27.66% | +27.15% | +597.57% |
How will the company utilize the INR 350 crores raised via QIP to support the target of adding 5,000 stores by FY29?
What specific strategies will be implemented to sustain the current same-store growth rates as the store base matures?
How will the shift in store mix between COCO and FOFO models impact overall unit economics and margins in FY27?
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