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Zota Health Care Q2 Review: Nirmal Bang Trims Target Price But Retains Rating; Details Inside

The brokerage expects revenues to clock a compound annual growth rate of 62% over FY26FY28E, driven by store additions, improved operations and continued network scale-up.

Zota Health Care Q2 Review: Nirmal Bang Trims Target Price But Retains Rating; Details Inside
Zota's EBITDA turned positive Rs 3.1 crore on account of lower marketing expenses pertaining to brand ambassador spends but curtailed by higher employee expenses.
(Photo: Company website)
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Zota Health Care Ltd.
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Zota Healthcare's Q2 FY27 showed sequential recovery at the operating level, but profitability remained weak. Consolidated revenue grew 54.6% YoY to Rs 200 crore, led by Davaindia (up 76.2% YoY to Rs 170 crore) on higher footfall and a better wallet spend. EBITDA turned positive Rs 3.1 crore on account of lower marketing expenses pertaining to brand ambassador spends but curtailed by higher employee expenses.

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Following Zota Health Care Ltd.'s September-quarter results, Nirmal Bang has maintained its Buy rating on the stock, trimming its target price to Rs 1,670 from Rs1,679, implying a potential upside of 26% from the reports current price.

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The brokerage expects revenues to clock a compound annual growth rate of 62% over FY26–FY28E, driven by store additions, improved operations and continued network scale-up.

Nirmal Bang expects the company to continue to be EBITDA positive and continue to value the company at 20 times Sept FY30E EV/EBITDA.

Zota Healthcare Q2 FY27 Results Highlights

Zota Healthcare's Q2 FY27 showed sequential recovery at the operating level, but profitability remained weak.

Consolidated revenue grew 54.6% YoY to Rs 200 crore, led by Davaindia (up 76.2% YoY to Rs 170 crore) on higher footfall and a better wallet spend.

EBITDA turned positive Rs 3.1 crore on account of lower marketing expenses pertaining to brand ambassador spends but curtailed by higher employee expenses.

Click on the attachment to read the full report:

Nirmal Bang Zota.pdf
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