Zota Health Care LImited — PPTs, 30-05-2025: Investor Presentation

1. Financial Highlights:

Zota Health Care’s revenue surged 62% YoY to ₹292.98 Cr, with gross profit up 86% to ₹155.67 Cr. Gross margin improved to 53.1% from 46.4%, while GMV hit ₹245.62 Cr. Operating profit turned positive at ₹2.47 Cr versus a loss last year; EBITDA margin improved to 4.2%. Consolidated net loss narrowed sharply to ₹58.55 Cr from ₹143.48 Cr. Equity rose to ₹227.16 Cr and non-current assets increased to ₹855.91 Cr, reflecting retail infrastructure investments. Inventories and receivables nearly doubled, aligned with retail network scaling.

2. Strategic Initiatives & Growth Drivers:

Aggressive expansion of Davaindia retail pharmacy drive growth, adding 702 stores (599 COCO, 103 FOFO), reaching 1,582 outlets nationwide. COCO stores remain central, with plans for ~800-900 more next year. Launch of a B2C online portal and app for medicine delivery enhances consumer access. Emphasis on private-label generics, offering 30%-90% savings, fuels demand. Acquisition of 56% stake in Everyday Herbal Group boosts OTC presence and backward integration.

3. Business Developments:

Davaindia’s footprint extends across 23 states and 2 UTs with 852 COCO and 730 FOFO stores. Rent rationalization and technology-driven supply chain improvements enhance store economics. Partnership with Indian Oil Corporation enables COCO stores at petrol pumps, expanding reach. Export dossiers (325 registered, 261 filed) support growing formulations exports across 30+ countries.

4. Market Position & Competitive Advantage:

As India’s largest private generic pharmacy chain, Davaindia leads through cost efficiency by cutting intermediaries. COCO stores deliver ~60% gross margins and an 80% repeat customer base signals robust brand loyalty. Chronic therapies (57% of revenue) create steady demand. Cloud-based AI operations streamline supply chain and inventory management, supporting scalability.

5. Investor Implications:

Strong retail footprint growth, better profitability, and digital focus indicate positive growth potential. COCO store emphasis enhances unit economics and brand control, helping sustain market leadership. High repeat customer ratio and cost advantage underpin resilience. Execution risks from rapid expansion and working capital should be monitored. Positioned well to benefit from rising demand for affordable generics in India.