Q3 2026 Zota Health Care Ltd Earnings Call Transcript
Key Points
- Zota Health Care Ltd (NSE:ZOTA) reported a strong year-over-year revenue growth of 98.2% for Q3 FY26, driven by continued store additions and improved scale across its network.
- The company successfully expanded its Davaindia retail pharmacy network by adding 276 new stores, bringing the total to 2,331 stores as of December 31, 2025.
- A key milestone was the successful completion of an INR350 crore Qualified Institutional Placement (QIP), strengthening the balance sheet and providing financial flexibility.
- Zota Health Care Ltd (NSE:ZOTA) acquired a 100% equity stake in Curexis, enhancing its portfolio with pharmaceutical, nutraceutical, cosmetics, ayurvedic, and OTC products.
- The company reported a significant increase in quarterly customer footfall to 49 lakh in Q3 FY26, up from 27 lakh in Q3 FY25, indicating improved store productivity and network scale.
- Operating profit (EBITDA) was moderated due to higher operating expenses linked to network expansion, with over 400 stores under development incurring pre-operative costs.
- Despite the expansion, the company reported a consolidated EBITDA of only INR127 lakh for the quarter, reflecting the impact of increased expenses.
- The average revenue per store for cohorts older than two years has flattened or decreased, raising concerns about the unit economics as stores mature.
- Employee costs have significantly increased, attributed to the rapid expansion and pre-operating expenses for new stores, raising questions about cost management.
- The company's overall EBITDA margin remains low at 3% to 5%, despite the high revenue contribution from Davaindia, which accounts for 80% of total revenue.
Ladies and gentlemen, good day and welcome to Zota Healthcare Limited Q3 FY26 Earning Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Ajit Mishra. Thank you and over to you.
Thank you. Good afternoon to all the participants. I am Ajit Mishra from Ernst and Young Investor Relations. Before we proceed to the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risk, uncertainties, and other factors. It must be viewed in conjunction with other business risks that could cause future reserve performance or achievement to differ significantly from what it expressed or implied by such forward-looking statements.
Please note that we have mailed the press release, presentations, results, and the same are available on the exchange and company website. In case if you have not received the same, you can write to us and we'll be happy to send that over to you.
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