Zota Health Care earnings calls.

Zota Healthcare reported strong Q3 FY26 revenue growth of 98.2% YoYCurrent reported value: 98.2% YoY. No comparable prior figure is available in the source record. to Rs 142.95Current reported value: 142.95. No comparable prior figure is available in the source record. crore, driven by rapid Dava India retail pharmacy network expansion adding 276 stores to reach 2,331Current 2,331. Reported change: +276 QoQ. total. However, EBITDA contracted sharply to Rs 127 lakh due to elevated pre-operative costs for ~400 stores in pipeline and higher employee expenses (Rs 53 crore total). The company completed a Rs 350 crore QIP to fund CPO store rollout and acquired Skia pharmacy brand for generic market expansion. Management targets 5,000 stores by March 2029 and 1,000 CPO openings in FY27. Cohort data revealed concerning trends: stores over 3 years saw revenue decline from Rs 7 lakh to Rs 6.85 lakh per store, while 2-3 year stores flattened at Rs 3.9 lakh. Near-term margin compression is transitory per management, with mature store EBITDA margins of 25-30% and blended target of 17-20% company-level. Risk includes unit economics not materializing as stores mature and sustained employee cost inflation amid aggressive expansion cadence.