1. At a Glance
If Indian pharma stocks were Bollywood characters, Zota Health Care Limited would be the over-ambitious entrepreneur who opened 2,331 stores, raised ₹350 crore from institutions, doubled quarterly revenue, and still somehow managed to lose money doing it.
Market cap stands at ₹4,403 crore, the stock is hovering around ₹1,304, and in the last three months it has politely reminded investors that gravity exists (-13.5%). Over one year, however, it is up 33.4%, which tells you speculation is alive and well.
The latest Q3 FY26 results show ₹143 crore in revenue, a sharp 98.2% YoY jump, but PAT of -₹29.5 crore and an EPS of -₹8.73. ROE is a spicy -36%, ROCE is -17%, and the stock trades at ~14x book value despite bleeding cash.
So yes, revenue is sprinting. Profitability? Still stuck tying its shoelaces.
2. Introduction – The Zota Paradox
Zota Health Care is a fascinating contradiction. On one side, it is building India’s largest generic pharmacy network under the Davaindia brand, preaching affordable healthcare and private-label efficiency. On the other side, its financials look like a diet plan that promises abs but delivers only hunger.
The company operates across domestic pharma distribution, retail generic pharmacies, and exports to 30+ countries. It manufactures in a WHO-GMP facility in Surat SEZ and boasts hundreds of dossiers filed globally. On paper, this should scream “scalable pharma platform.”
Yet, despite 30%+ sales CAGR over 3 years, Zota’s profits have gone AWOL. FY25 ended with ₹72.7 crore loss, margins collapsed, interest costs climbed, and depreciation exploded thanks to aggressive expansion.
The big question: is Zota
in a temporary investment phase… or permanently addicted to growth without profits?
3. Business Model – WTF Do They Even Do?
Zota runs three engines, all revving loudly:
1) Domestic Distribution
The OG business. Generic drugs, OTC products, 1,050+ distributors, and over 3,000 products. This is boring, low-margin, volume-driven pharma. Think wholesaler energy, not innovator vibes.
2) Davaindia – Discount Pharmacy on Steroids
This is the star attraction. Over 2,331 stores, mostly FOFO (franchise-owned, franchise-operated), selling private-label generics at 30–90% discounts. Chronic therapies, repeat customers, and a model inspired by Jan Aushadhi but with branding swagger.
Sounds brilliant, right? Except discounts don’t pay rent unless volumes explode and costs behave.
3) Exports
Exports to Africa, CIS, Asia, and Latin America with 253+ registered dossiers and 311 pending approvals. This is the long-gestation, compliance-heavy, hope-for-future-margins business.
So Zota isn’t confused. It’s just trying to do everything, everywhere, all at once.
4. Financials Overview – Growth Without Oxygen
Quarterly Comparison (Q3 FY26 – Consolidated, ₹ Crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 143 | 72 | 129 | 98.2% | 10.9% |
| EBITDA | 1.28 | – | 6.0 | NA | -78% |
| PAT | -29.5 | -19.0 | -16.0 | -55% | -84% |
| EPS (₹) | -8.73 | -6.78 | -5.20 | -29% | -68% |
