Zota Health Care Q2FY27 Revenue Up 54.58% YoY to ₹19,933 Lakhs, EBITDA Turns Positive
Zota Health Care reported Q2FY27 consolidated revenue of ₹19,933.14 lakhs, up 54.58% YoY. Davaindia sales grew 76.25% YoY to ₹16,846.81 lakhs. EBITDA turned positive at ₹791.72 lakhs. The company converted ₹119.52 crore loan to equity by allotting shares.
The substantial revenue growth, positive EBITDA, and successful debt conversion are material events that are likely to significantly influence investor perception and the company's financial standing.
The company reported significant YoY revenue growth, positive EBITDA turnaround, and strategic debt-to-equity conversion, indicating strong operational and financial performance.
Zota Health Care Limited announced its unaudited financial results for the second quarter and half-year ended September 30, 2026. The company reported consolidated revenues from operations of ₹19,933.14 lakhs for Q2FY27, marking a significant year-over-year growth of 54.58% compared to ₹12,894.82 lakhs in Q2FY26. The Davaindia sales for the quarter reached ₹16,846.81 lakhs, a substantial increase of 76.25% YoY from ₹9,558.59 lakhs in Q2FY26. The Everyday Herbal Group also demonstrated strong performance, with Q2FY27 sales at ₹806.79 lakhs, an 78.99% YoY growth.
Profitability witnessed a strong sequential recovery, with EBITDA turning positive at ₹791.72 lakhs in Q2FY27, compared to a negative EBITDA of -₹955.40 lakhs in Q1FY27 and ₹795.71 lakhs in Q2FY26. The EBITDA margin for the quarter stood at 3.97%. The company added 20 new Davaindia stores during Q2FY27 (4 COCO and 16 FOFO), bringing the total network to 2,840 stores nationwide. Quarterly customer footfall was recorded at 66.17 lakh and Gross Merchandise Value (GMV) at ₹18,791 lakhs.
In a strategic move, Zota Health Care converted ₹119.52 crore of outstanding unsecured loan and accumulated interest from its wholly-owned subsidiary, Davaindia Health Mart Limited (DHML), into equity. This was executed through the allotment of 2,35,512 equity shares at ₹5,075 per share on a preferential basis, with no fresh cash outflow.
Mr. Ketan Kumar Zota, Chairman, Zota Health Care Limited, commented, "We are pleased with our performance during Q2FY27, as we continued to strengthen the underlying fundamentals of the business. Revenue from Operations grew by 54.58% YoY, supported by a 76.25% YoY increase in Davaindia Sales and 78.99% YoY growth in Everyday Herbal Group. Importantly, EBITDA turned positive at ₹791.72 lakhs, with an EBITDA margin of 3.97%, marking a significant sequential turnaround in profitability.
He further added, "As communicated during the previous quarter, we consciously moderated the pace of Davaindia store additions during Q2FY27 following the significant expansion undertaken over the past several quarters. During the quarter, our efforts were directed towards consolidating the expanded store network, closely monitoring the performance of recently added stores, improving store-level productivity and strengthening execution across the existing network. This measured approach enabled us to sharpen our focus on the operating performance and cash-generation profile of the expanding store base. Despite moderated store additions, operating momentum remained healthy, with the Davaindia network reaching 2,840 stores, quarterly customer footfalls of 66.17 lakh and GMV of ₹18,791 lakhs.
Going forward, our focus remains on sustainable and disciplined growth. Following the measured pace of expansion during Q2FY27, we intend to accelerate Davaindia network additions during H2FY27 and progress towards our full-year expansion plans, while maintaining a strong focus on store-level productivity, operating efficiency and cash generation."
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