On February 16, 2026, Zota Health Care Limited (“the Company”) officially announced the further acquisition of a 21.80% stake in its subsidiary, M/s Everyday Herbal Beauty Care Limited (EHBCL). This strategic move was executed through the subscription to a rights issue, involving the acquisition of 1,18,00,000 equity shares at a price of Rs. 16.50 per share. Consequently, Zota’s total shareholding in EHBCL has increased from its previous level to 87.78%.

The acquisition is part of Zota Healthcare’s ongoing expansion strategy to strengthen its foothold in the herbal and cosmetic segments. EHBCL, which was recently converted into a public limited company on February 10, 2026, specializes in manufacturing and marketing Ayurvedic and OTC products under the renowned brand name “Khadi India”. This increased stake allows Zota to better integrate EHBCL’s operations and leverage its established manufacturing capabilities and product portfolio.

Zota Health Care Limited is a research-oriented pharmaceutical company with a diverse portfolio of over 4,000 products and 24 marketing divisions. In 2025, the company significantly expanded its “Davaindia” generic pharmacy network, reaching over 2,331 stores nationwide. Recent updates include the incorporation of a new wholly-owned subsidiary, KMHP Ventures Limited, and the successful completion of a ₹350 crore Qualified Institutional Placement (QIP) in December 2025 to accelerate store rollouts and support working capital.

For the third quarter ended December 31, 2025, Zota reported a consolidated revenue of ₹142.95 Crores, representing a significant year-on-year growth of 98.2% compared to ₹72.12 Crores in Q3 FY25. Despite this revenue surge, the company reported a consolidated net loss of ₹29.50 Crores for the quarter, primarily due to higher operating expenses related to the rapid expansion of its retail network. As of December 2025, the company’s shareholding pattern reflects strong institutional interest, with Foreign Institutional Investors (FIIs) holding approximately 8.09% and Domestic Institutional Investors (DIIs) holding 7.22% of the total equity.

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