Zota Health Care Limited is a renowned pharmaceutical company that manufactures, markets, and exports pharmaceutical, ayurvedic, nutraceutical, and over-the-counter (OTC) products. The company operates across semi-regulated and regulated markets in Asian, African, Russian, and Latin American countries. Founded in 1995 and headquartered in Surat, India, Zota Health Care has established itself as a significant player in the pharmaceutical industry over nearly three decades.
The company's business model comprises three core verticals: Domestic, Exports, and the Retail Pharmacy Chain (Davaindia). This diversified approach enables Zota Health Care to serve multiple market segments and maintain a strong presence across various distribution channels. It boasts a portfolio of more than 3,000 products, spanning categories such as generics, OTC products, allopathic, and ayurvedic medicines.
The domestic sales division is the oldest segment, focusing on the direct distribution of generic drugs, OTC products, and other pharmaceutical products through the company's extensive distribution network across India. Zota Health Care has over 1,050 distributors nationwide and a portfolio exceeding 3,000 products, demonstrating comprehensive reach across the Indian market.
Zota Health Care exports its products to approximately 30 countries. Its Sachin SEZ facility caters to these international customers, with 253 dossiers approved and an additional 311 filed and pending approval. This robust international presence positions Zota Health Care as a global pharmaceutical supplier with significant regulatory compliance.
The company operates its retail stores under the "Davaindia" brand. As India's largest private-sector generic pharmacy chain, Davaindia is making strong inroads into the generic retail business by providing quality generic medicines at discounts ranging from 30% to 90% compared to branded equivalents. As of July 4, 2025, Zota has expanded its Davaindia network to 1,760 stores, surpassing 1,000 company-owned and company-operated (COCO) stores, signifying substantial growth in the retail pharmacy sector.
To enhance brand recall for Davaindia, the company has undertaken aggressive marketing campaigns and promotions, featuring Mr. Kapil Dev as an icon to build awareness around the integrity, excellence, and affordability of generic drugs.
Zota Health Care offers a diverse product portfolio that includes generic drugs, over-the-counter products, ayurvedic products, and nutraceuticals. It provides various medicines for chronic illnesses, such as diabetes, heart conditions, and thyroid disorders. This broad therapeutic focus enables the company to address a wide range of health conditions across different patient segments.
As of July 2025, Zota Health Care has a market capitalization of ₹3,594 crores, reflecting an impressive increase of 124% over the past year. This substantial growth in market capitalization highlights investor confidence in the company's expansion strategy and future business prospects.
The revenues of Zota Health Care stood at ₹1,815 million in FY24, marking a 27.4% increase compared to ₹1,425 million reported in FY23. Over the past five years, the company's revenue has demonstrated a consistent growth trajectory with a CAGR of 17.1%.
For the most recent quarter (March 2025), Zota Health Care's consolidated net sales reached ₹97.27 crore, a significant 95.98% increase year-on-year. However, the company faced profitability challenges during this period, with net profit falling by 86.27% since the same period last year, resulting in a net loss of ₹-12.89 crore in Q4 FY2024-2025.
• Revenue FY24: ₹1,815 million (up 27.4% YoY)
• Revenue 5-year CAGR: 17.1%
• Q4 FY2024-25 Net Sales: ₹97.27 crore (up 95.98% YoY)
• Q4 FY2024-25 Net Profit: ₹-12.89 crore (down 86.27% YoY)
• Overall FY (not specified, but likely last reported): Revenue ₹293 crores, Profit ₹-56.7 crores
• Market Capitalization: ₹3,594 crore (as of July 2025)
• Promoter Holding: 58.1%
• Pledged Promoter Shares: 0.16% (as on Dec-24)
The company is led by Chairman Ketankumar Zota and Managing Director Moxesh Zota. The promoters of Zota Health Care Ltd have pledged a minimal 0.16% of the total equity as of December 2024, indicating strong confidence in the business with minimal share encumbrance.
In July 2025, Zota Health Care Limited announced the allotment of 340,829 equity shares upon conversion of warrants pursuant to a Preferential Issue, approved via circular resolution on July 02, 2025. This development signifies the company's capital-raising activities aimed at supporting its growth plans.
A scheduled analyst meet was planned for July 10, including updates on strong same-store growth and Gross Merchandise Value (GMV) performance, demonstrating the company's commitment to transparent communication with its stakeholders.
The stock has delivered impressive returns, with 54.70% over the last six months and 100.37% over the past year, reflecting strong market performance despite recent operational challenges. However, investors should note that the stock is currently trading at 15.6 times its book value, and the company has a low interest coverage ratio, which could indicate potential financial risk.
Zota Health Care's strategic expansion of its Davaindia network and its consistent revenue growth trajectory position it well for future growth. The company's focus on generic medicines aligns perfectly with the increasing demand for affordable healthcare solutions in both India and international markets, presenting a compelling long-term opportunity, though recent profitability issues require careful monitoring.
