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Earnings Call Transcript

Zota Healthcare Earnings Call Transcript: Key Takeaways

Zota reported 67.6% YoY revenue growth in Q1 FY27, driven by Davaindia network expansion. Management expects EBITDA positivity to resume from Q2 and cash breakeven by Q1 FY28.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth67.6% YoY to INR 173.6 Cr.
MarginsShort-term pressure from input costs; expected recovery in 2 quarters.
Demand visibilityStrong SSG and increasing consumer acceptance of generics.
Management confidenceHigh; confident in meeting 650 store addition target.

Growth

Revenue grew 67.6% YoY to INR 17,360 lakhs. Gross margins improved to 61.96%.

Outlook

Targeting 600-650 new store additions in FY27. Projecting annual marketing spend of INR 40-45Cr.

Risks

Temporary margin pressure due to high input costs and geopolitical issues; significantly increased marketing spend (INR 15-17Cr).

Last quarter's promises, checked

Delivered

  • Guided 200+ store additions in Q1 → delivered 264 (= BEAT)
  • Guided 25-30% SSG for mature stores → delivered 24-30% range (= BEAT)
  • Guided sustainable 60%+ gross margins → delivered 61.96% (= BEAT)

Partly delivered

  • Guided FY27 500-700 store target → 264 added (on track) (= PARTIAL)

Missed

  • Guided EBITDA positivity turnaround → delivered temporary margin pressure/loss (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: ZOTA. Summary written with AI assistance from the document.

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Zota Healthcare Ltd: key numbers

Share price
₹1,336.60
Market cap
₹4,629 Cr
Revenue (annual)
₹538.7 Cr
Net profit (annual)
₹-73.94 Cr
P/E (TTM)
-44.9×Sector 50.4×
Promoter holding
49.38%+0.00% QoQ
FII holding
7.91%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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