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Zota Health Care Ltd. (IN:ZOTA)
:ZOTA
India Market
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Zota Health Care Ltd. (ZOTA) AI Stock Analysis

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IN:ZOTA

Zota Health Care Ltd.

(ZOTA)

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Neutral 49 (OpenAI - Gpt-5.6Sol)
Rating:49Neutral
Price Target:
₹1,281.00
▼(-16.45% Downside)
Action:Reiterated
Date:09/22/26
The score is held back primarily by weak financial performance—sharp margin deterioration, ongoing losses, and substantial cash burn—despite strong revenue growth. Technicals are moderately supportive with price above key shorter-term averages, but mixed momentum signals limit the boost. Valuation is balanced by a high dividend yield, but the negative P/E underscores that profitability remains a key risk.
Positive Factors
Strong Revenue Growth
Rapidly accelerating revenue indicates expanding sales of the company’s pharmaceutical portfolio and growing distribution reach. If the business can improve profitability, this larger revenue base could support greater operating scale, stronger market presence, and improved long-term earnings potential.
Negative Factors
Severe Margin Deterioration
The sharp gross-margin decline shows that higher sales are not translating into healthy economics, while recurring operating losses indicate the pressure is not merely temporary. Unless pricing, product mix, or costs improve, revenue growth may continue to destroy rather than create value.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapidly accelerating revenue indicates expanding sales of the company’s pharmaceutical portfolio and growing distribution reach. If the business can improve profitability, this larger revenue base could support greater operating scale, stronger market presence, and improved long-term earnings potential.
Read all positive factors

Zota Health Care Ltd. (ZOTA) vs. iShares MSCI India ETF (INDA)

Zota Health Care Ltd. Business Overview & Revenue Model

Company Description
Zota Health Care Limited is an Indian pharmaceutical firm dedicated to the development, manufacturing, and distribution of a broad spectrum of health-related products across India. Its extensive portfolio encompasses generic medications, over-the-...
How the Company Makes Money
Zota Health Care Ltd. makes money primarily by selling pharmaceutical and healthcare products, with revenue recognized from the sale of finished formulations marketed under its brands and supplied through its distribution network. Key revenue stre...

Zota Health Care Ltd. Financial Statement Overview

Summary
Rapid revenue growth is a clear positive, but financial quality is weak: operating profitability is negative (2023–2026), net margin has worsened to about -13.7% (2026), and gross margin fell sharply (53% in 2025 to ~11.9% in 2026). Cash flow is the biggest concern with large, persistent operating and free-cash-flow deficits (FCF about -1.92B in 2026). The balance sheet is a partial offset with moderate leverage (debt-to-equity ~0.39 in 2026), but debt has risen quickly alongside losses, increasing funding risk.
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
27
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.09B5.39B2.93B1.80B1.40B1.31B
Gross Profit719.94M639.06M1.56B803.38M310.68M418.86M
EBITDA63.39M185.40M-36.65M81.21M98.05M164.26M
Net Income-1.03B-739.36M-563.98M-143.48M-57.73M89.08M
Balance Sheet
Total Assets0.0011.31B4.39B2.28B1.58B1.39B
Cash, Cash Equivalents and Short-Term Investments955.74M955.74M36.19M10.05M11.15M22.99M
Total Debt0.002.70B1.40B952.85M451.22M149.00M
Total Liabilities-6.96B4.35B2.12B1.38B777.55M494.67M
Stockholders Equity6.96B6.93B2.24B899.77M803.57M896.27M
Cash Flow
Free Cash Flow-558.29M-1.92B-959.42M-226.94M-145.05M100.84M
Operating Cash Flow-191.07M-790.12M-499.64M-59.84M-20.06M133.32M
Investing Cash Flow-728.26M-3.22B-956.20M-129.03M147.03M-266.52M
Financing Cash Flow946.32M4.93B1.47B187.76M-138.81M142.73M

Zota Health Care Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1533.20
Price Trends
50DMA
1189.65
Positive
100DMA
1235.55
Positive
200DMA
1282.05
Positive
Market Momentum
MACD
49.56
Negative
RSI
61.72
Neutral
STOCH
65.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ZOTA, the sentiment is Positive. The current price of 1533.2 is above the 20-day moving average (MA) of 1183.03, above the 50-day MA of 1189.65, and above the 200-day MA of 1282.05, indicating a bullish trend. The MACD of 49.56 indicates Negative momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ZOTA.

Zota Health Care Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹147.50B53.76―0.54%-6.72%-22.67%
71
Outperform
₹79.23B39.96―0.10%28.14%11.38%
56
Neutral
₹25.27B37.10―0.11%-20.86%-34.51%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
₹39.44B-41.47―0.08%78.89%-50.10%
48
Neutral
₹181.69B-373.42――27.15%40.46%
47
Neutral
₹23.09B-323.49―0.56%10.26%-162.02%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ZOTA
Zota Health Care Ltd.
1,300.20
-106.07
-7.54%
IN:CONCORDBIO
Concord Biotech Ltd.
1,409.95
-228.29
-13.94%
IN:DCAL
Dishman Carbogen Amcis Ltd.
161.20
-115.25
-41.69%
IN:PANACEABIO
Panacea Biotec Limited
377.05
-29.30
-7.21%
IN:SUPRIYA
Supriya Lifescience Limited
984.40
256.66
35.27%
IN:ONESOURCE
OneSource Specialty Pharma Limited
1,584.40
-250.00
-13.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 22, 2026