Overview: Global Economy Tested by Renewed Geopolitical and Commodity Shocks The global economy entered FY2026 with improving resilience, supported by steady consumption, technology-led investment, and partial moderation in trade policy uncertainty. However, the outlook changed materially following the outbreak of conflict in the Middle East in early 2026. The conflict disrupted energy supply routes, increased commodity price volatility, revived inflationary pressures, and tightened global financial conditions. As a result, global growth momentum has moderated, with risks remaining tilted to the downside. IMF reference forecast projects global growth at 3.10% in 2026 and 3.20% in 2027, assuming the conflict remains relatively short-lived and disruptions gradually ease.
Global Output Growth Projections: 2025-2027 (Real GDP Growth %)
? World Output: 2025 (approx 3.3), 2026 (approx 3.1), 2027 (approx 3.2)
? Advanced Economies: 2025 (approx 1.8), 2026 (approx 1.7), 2027 (approx 1.8)
? EMDE: 2025 (approx 4.3), 2026 (approx 4.0), 2027 (approx 4.2)
geopolitical uncertainty. Advanced economies are expected to grow at a modest pace, with the United States remaining relatively resilient due to fiscal support and continued technology-related investment. However, the Euro Area and other energy-importing economies are likely to face greater pressure due to their dependence on imported energy. Emerging market and developing economies are expected to witness a sharper moderation, particularly in regions exposed to energy imports, food price pressures, external financing constraints, and weaker trade prospects. India continues to remain one of the key growth engines of the global economy. The IMF projects Indias growth at 6.50% in 2026 and 2027, supported by strong domestic demand, healthy investment activity, policy stability, and favourable long-term consumption trends.
Output Growth Projections: Asian Economies 2025-2027 (Real GDP Growth %)
? China: 2025 (approx 4.8), 2026 (approx 4.5), 2027 (approx 4.0)
? India: 2025 (approx 7.0), 2026 (approx 6.5), 2027 (approx 6.5)
? Indonesia: 2025 (approx 4.8), 2026 (approx 4.4), 2027 (approx 4.7)
? Thailand: 2025 (approx 2.0), 2026 (approx 1.8), 2027 (approx 2.0)
? Vietnam: 2025 (approx 7.5), 2026 (approx 6.8), 2027 (approx 6.4)
? Malaysia: 2025 (approx 5.0), 2026 (approx 4.5), 2027 (approx 4.0)
? Philippines: 2025 (approx 5.8), 2026 (approx 5.5), 2027 (approx 5.8)
After easing during the previous year, global inflationary pressures have resurfaced due to the sharp increase in energy, fertilizer, and transportation costs. The world bank expects global headline inflation to rise from 4.10% in 2025 to 4.40% in 2026, before moderating to 3.70% in 2027. The World Bank also highlights renewed inflationary pressure, projecting global headline inflation to pick up to around 4.00% in 2026, before easing in 2027 as energy prices normalize.
Global headline and core CPI inflation (%)
? Core: Dec-24 (approx 2.8), Feb-25 (approx 2.9), Apr-25 (approx 2.6), Jun-25 (approx 2.7), Aug-25 (approx 2.6), Oct-25 (approx 2.6), Dec-25 (approx 2.6), Feb-26 (approx 2.6), Apr-26 (approx 2.7)
? Headline: Dec-24 (approx 3.0), Feb-25 (approx 3.3), Apr-25 (approx 3.1), Jun-25 (approx 3.3), Aug-25 (approx 3.0), Oct-25 (approx 3.0), Dec-25 (approx 2.9), Feb-26 (approx 3.0), Apr-26 (approx 3.4)
Commodity markets remain highly sensitive to the duration and intensity of geopolitical disruptions. The World Bank expects overall commodity prices to rise by around 22.00% in 2026, driven primarily by higher energy prices. Brent crude oil is projected to average around USD 94.00 per barrel in 2026, while fertilizer prices are expected to increase sharply due to higher natural gas prices and supply disruptions. For the pharmaceutical and healthcare industry, such movements may influence input costs, packaging, logistics, and the cost of active pharmaceutical ingredients and intermediates, particularly where supply chains remain globally integrated.
Brent oil prices and geopolitical events (US$/bbl)
? 2021: approx 55
? 2022: Russias invasion of Ukraine (approx 120 peak)
? 2023: 2023 conflict in the Middle East (approx 90 peak)
? 2024: Trade tensions (approx 85)
? 2025: (approx 65)
? 2026: 2026 conflict in the Middle East (approx 130 peak)
Commodity price forecasts (% Index, 100 = 2015-19 average)
? Energy: 2020 (approx 80), 2021 (approx 150), 2022 (approx 200), 2023 (approx 140), 2024 (approx 130), 2025 (approx 120), 2026 (approx 170)
? Metals and Minerals: 2020 (approx 120), 2021 (approx 170), 2022 (approx 180), 2023 (approx 150), 2024 (approx 140), 2025 (approx 135), 2026 (approx 130)
? Agriculture: 2020 (approx 100), 2021 (approx 130), 2022 (approx 160), 2023 (approx 155), 2024 (approx 140), 2025 (approx 135), 2026 (approx 140)
? Commodity prices: 2020 (approx 90), 2021 (approx 140), 2022 (approx 190), 2023 (approx 160), 2024 (approx 145), 2025 (approx 140), 2026 (approx 180)
Sources: U. S. Energy Information Administration; World Bank
Global trade growth is expected to moderate after a stronger performance in 2025. The World Bank projects global trade in goods and services to slow from 4.80% in 2025 to 2.90% in 2026, while the IMF expects world trade volume growth to decline from 5.10% in 2025 to 2.80% in 2026. This reflects the impact of earlier front-loading of trade, tariff-related uncertainty, disruptions in shipping routes, and higher transport costs. At the same time, technology and AI-related trade continue to provide some support to global trade flows, particularly in parts of Asia.
Financial markets have also remained volatile. The escalation of geopolitical risk has strengthened safe-haven demand for the US dollar and pushed up bond yields in several economies. Emerging markets, particularly commodity-importing countries, have faced pressure through currency depreciation, higher borrowing costs, and capital flow volatility. These developments highlight the need for businesses to maintain prudent cost structures, diversified sourcing, and disciplined working capital management.
Global Trade Growth
Central banks and governments continue to face difficult policy trade-offs. Monetary authorities are required to manage renewed inflation risks without significantly weakening growth, while governments face pressure to support vulnerable households and businesses amid higher energy and food prices. However, elevated public debt and higher interest costs have reduced fiscal flexibility across many economies, especially in emerging markets and low-income countries. The IMF and World Bank have emphasized the importance of targeted fiscal support, fiscal discipline, debt sustainability, and policy credibility in managing the current environment.
Healthcare and pharmaceuticals continue to remain relatively resilient compared to many other sectors, as demand for essential medicines and chronic-care therapies is less impacted by short-term economic or trade-related volatility. As of March 2026, the global pharmaceutical industry was operating in a more cautious environment, with companies closely monitoring U.S. policy discussions around tariffs on imported branded/patented medicines and pharmaceutical inputs. These developments have encouraged global pharma companies to re-evaluate supply-chain strategies, increase focus on local manufacturing, and strengthen sourcing flexibility to reduce future policy and trade-related risks. The U.S. continues to remain dependent on imported pharmaceutical products and APIs, particularly from major supplier countries such as India and China, making supply stability, cost competitiveness and access to affordable medicines important areas of focus for the industry.
Structural demand drivers for the sector remains strong. Non-communicable diseases continue to account for nearly three-fourth of global non-pandemic-related deaths, with around 18 million pre-mature deaths occurring before the age of 70, largely in low- and middle-income countries. At the same time, ageing population trends are expected to further increase healthcare needs, with one in six people globally expected to be aged 60 years and above by 2030, and the population aged 60+ projected to double to 2.1 billion by 2050. These long-term trends are expected to support sustained demand for chronic therapies, affordable generics, preventive healthcare and wider access to medicines across emerging markets.
On the innovation side, GLP-1 therapies continue to reshape the global pharmaceutical market, driven by rising demand in diabetes, obesity and related metabolic conditions. Evaluates industry outlook indicates that GLP-1 drugs are expected to become a major growth driver for global prescription drug sales, with obesity and metabolic therapies gaining a larger share of future revenue pools. At the same time, the industry is approaching a significant patent cliff, with more than USD 300.00 billion of branded prescription drug sales expected to lose exclusivity by 2030. This is expected to create strong opportunities for generics and biosimilars, supporting wider affordability and increasing the relevance of cost-effective medicines over the coming decade.
Looking ahead, the global economy is expected to remain on a moderate growth path, with uncertainty around geopolitical developments, commodity prices, inflation, trade policies, and financial conditions. While downside risks remain elevated, investments in technology, digital infrastructure, healthcare, energy security, and regional trade integration may support medium term recovery. The healthcare and pharmaceutical sectors are expected to remain relatively stable compared to cyclical industries, supported by essential demand and growing public focus on healthcare security.
Source: IMF-World Economic Outlook, World bank - GEP Reports
FY2025-26 was another year of strong macroeconomic performance for India, despite a challenging global environment marked by geopolitical tensions, trade-related uncertainty, elevated policy risks and volatility in capital flows. India remained among the fastest-growing major economies, supported by strong domestic consumption, sustained investment activity, healthy financial sector conditions and continued policy focus on infrastructure, manufacturing and digital transformation. As per the RBI Annual Report 2025-26, Indias real GDP growth is estimated at 7.60% in FY2025-26, compared to 7.10% in FY2024-25, reflecting the strength of domestic demand and improving industrial momentum.
Weighted Contribution to GDP Growth (%)
? Private final consumption expenditure
? Government final consumption expenditure
? Gross fixed capital formation
? Net exports
? Others
? GDP (y-o-y growth, per cent)
2023-24: approx 7.0 2024-25: approx 7.1 2025-26: approx 7.6
Notes: Others include change in stocks, valuable and statistical discrepancies. Source: NSO
Indias growth during FY2025-26 was largely driven by domestic factors. Private final consumption expenditure remained a key pillar of aggregate demand and grew by 7.70%, supported by steady rural consumption, improving urban demand, easing inflation and supportive policy measures. Gross fixed capital formation also expanded by 7.10%, reflecting sustained investment activity and the continued thrust on public capital expenditure, which helped crowd in private investment.
On the supply side, the services sector continued to remain the largest contributor to growth, supported by strong performance across trade, transport, communication, financial services, IT and professional services. Manufacturing also posted a strong recovery, with real manufacturing GVA growth estimated at 11.50% aided by improved demand, policy support and rising industrial activity. For companies operating in healthcare and pharmaceuticals, this macroeconomic environment provides a supportive base for business expansion, higher consumer reach and greater investment in supply chain and digital platforms.
Inflationary pressures eased meaningfully during FY2025-26, supporting overall consumption sentiment. CPI headline inflation stood at 3.40% in March 2026 on a monthly basis, while annual headline CPI inflation moderated to 2.10% in FY2025-26 from 4.60% in the previous year. This decline was largely supported by softer food prices, favourable supply conditions and subdued commodity price pressures for most part of the year. Lower inflation helped improve real purchasing power and supported household consumption, which remains positive for businesses focused on affordable healthcare and essential medicines.
Movements in Headline Inflation (%, left scale; y-o-y, right scale)
? M-o-m change
? Base effect
? CPI-Headline (RHS)
Mar-23: approx 3.5 May-23: approx 2.5 Jul-23: approx 3.0 Sep-23: approx 2.0 Nov-23: approx 2.5 Jan-24: approx 2.5 Mar-24: approx 2.5 May-24: approx 2.5 Jul-24: approx 2.5 Sep-24: approx 2.5 Nov-24: approx 2.5 Jan-25: approx 2.5 Mar-25: approx 2.5 May-25: approx 2.5 Jul-25: approx 2.5 Sep-25: approx 2.5 Nov-25: approx 2.5 Jan-26: approx 2.5 Mar-26: approx 2.5
Source: NSO, RBI Staff Estimates
For the pharmaceutical and healthcare sector, lower non-food inflation and relatively stable input costs helped ease pressure on logistics and operating expenses. However, external risks such as global commodity price volatility, currency movement and geopolitical disruptions remain important factors to monitor, especially for companies with exposure to imported raw materials, APIs or export markets.
During FY2025-26, the monetary policy environment turned more supportive as inflation moderated and growth remained resilient. The Monetary Policy Committee reduced the policy repo rate by 100 basis points during the year, while maintaining a neutral stance from June 2025. Liquidity conditions remained comfortable, supporting credit growth across sectors.
Policy Repo Rate (%)
? Feb-22: approx 4.0
? Apr-22: approx 4.0
? Jun-22: approx 4.9
? Aug-22: approx 5.4
? Oct-22: approx 5.9
? Dec-22: approx 6.2
? Feb-23: approx 6.5
? Apr-23: approx 6.5
? Jun-23: approx 6.5
? Aug-23: approx 6.5
? Oct-23: approx 6.5
? Dec-23: approx 6.5
? Feb-24: approx 6.5
? Apr-24: approx 6.5
? Jun-24: approx 6.5
? Aug-24: approx 6.5
? Oct-24: approx 6.5
? Dec-24: approx 6.5
? Feb-25: approx 6.25
? Apr-25: approx 6.0
? Jun-25: approx 5.5
? Aug-25: approx 5.5
? Oct-25: approx 5.5
? Dec-25: approx 5.5
? Feb-26: approx 5.5
Source: RBI
This is positive for investment-led sectors such as pharmaceuticals, retail healthcare and healthcare distribution, where working capital, technology investment and network expansion remain important.
The government also continued its focus on fiscal consolidation while maintaining expenditure quality. The central governments fiscal deficit was contained at 4.40% of GDP in FY2025-26, supported by revenue mobilisation and control over revenue expenditure. The continued emphasis on capital expenditure, infrastructure and digital public infrastructure is expected to improve logistics efficiency, market access and last-mile connectivity, which are relevant for healthcare and pharmacy retail businesses.
Indias external sector remained resilient despite global uncertainty. Merchandise trade deficit widened during FY2025-26 due to higher imports, but the impact was partly offset by a strong services trade surplus and steady private transfers. The current account deficit remained manageable at 1.00% of GDP during April-December 2025, while Indias foreign exchange reserves stood at USD 691.10 billion as at end-March 2026, providing an import cover of around 11 months.
The Indian Rupee traded with a depreciating bias during the year amid trade-related uncertainty, geopolitical tensions and foreign portfolio outflows. However, adequate forex reserves and policy efforts to promote local currency settlement helped support external sector stability. For pharmaceutical exporters, including companies operating in formulations and generics, currency movement can influence export realisations, input costs and margin performance.
Movement in Rupee, US Dollar, Crude Oil Price and EM Currency Index
? Mar-25: approx 85
? Apr-25: approx 85
? May-25: approx 85
? Jun-25: approx 86
? Jul-25: approx 87
? Aug-25: approx 88
? Sep-25: approx 88
? Oct-25: approx 88
? Nov-25: approx 89
? Dec-25: approx 90
? Jan-26: approx 91
? Feb-26: approx 92
? Mar-26: approx 92
Source: Bloomberg
Current Account Balance Supported by Services and Transfers (% of GDP)
? Trade Deficit
? Services
? Transfers
? Income
? CAB
2019-20: CAB approx -0.9 2020-21: CAB approx 0.9 2021-22: CAB approx -1.2 2022-23: CAB approx -2.0 2023-24: CAB approx -0.7 2024-25: CAB approx -1.1 2025-26 (Apr-Dec): CAB approx -1.0
Source: RBI
Indias merchandise exports remained exposed to global trade uncertainty; however, pharmaceuticals continued to remain a strategically important and resilient export sector. Indias pharmaceutical industry benefits from strong cost competitiveness, established formulation capabilities, large-scale manufacturing infrastructure and rising global demand for affordable medicines. India continues to be one of the largest suppliers of generic medicines globally, meeting nearly 20,000% of global generics demand and exporting pharmaceutical products to 191 countries. The Economic Survey 2025-26 also highlighted that the industry is gradually moving from a volume-led model towards a value-led approach, with increasing focus on complex generics, biosimilars, biopharma and innovation-led manufacturing.
The domestic generics opportunity also remains significant, supported by rising healthcare awareness, increasing chronic disease burden and the growing need to reduce out-of-pocket healthcare spending. Government initiatives such as the Pradhan Mantri Bhartiya Janaushadhi Pariyojana have further strengthened public awareness and acceptance of quality generic medicines. As of February 2026, 18,646 Jan Aushadhi Kendras were operational across India, offering generic medicines at prices typically 50,000% to 80,000% lower than branded alternatives. This reflects the increasing policy focus on improving access to affordable medicines and promoting wider adoption of generics across urban and rural markets.
Indias financial sector remained resilient during FY2025-26, supported by healthy bank balance sheets, improved asset quality, adequate capital buffers and strong credit growth. Bank credit to the commercial sector grew by 15,90% YoY in FY2025-26, reflecting sustained demand for credit across the economy. Domestic equity markets witnessed volatility during the year due to global policy uncertainty, geopolitical tensions and FPI outflows; however, Indias overall financial system remained stable. A stable financial sector and improving credit environment provide support for growing businesses, especially those expanding store networks, strengthening supply chains, investing in technology and improving working capital systems. For Zota Health Care Limited, access to credit and capital market confidence remain important enablers for scaling its affordable healthcare platform.
Indias economic outlook for FY2026-27 remains positive, supported by resilient domestic demand, stable macroeconomic fundamentals, healthy financial sector conditions and continued policy focus on infrastructure, manufacturing and digital transformation. The Economic Survey 2025-26 projects Indias real GDP growth for FY2026-27 in the range of 6.80% to 7.20%, while the RBI projects growth at 6.90%.
However, the outlook remains subject to external risks such as global trade disruptions, geopolitical tensions, movement in energy prices and weather-related developments.
Policy measures announced under the Union Budget 2026-27 are expected to further support Indias medium term growth prospects. Key initiatives such as biopharma SHAKT126, India Semiconductor Mission 2.0, expansion of the electronics components manufacturing scheme, development of rare earth corridors, establishment of chemical parks, and targeted support for capital goods and container manufacturing are aimed at strengthening domestic manufacturing capabilities and improving long-term competitiveness. In addition, the proposed Infrastructure Risk Guarantee Fund is expected to help de-risk physical and digital infrastructure investments, while reinforcing Indias position as a global hub for digital services.
Healthcare and pharmaceuticals are expected to remain key structural growth areas within the Indian economy, supported by rising chronic disease prevalence, increasing healthcare awareness, expanding insurance coverage, digital healthcare adoption and growing demand for affordable treatment options. In this environment, Zota Health Care Limited is well positioned to benefit from Indias expanding affordable healthcare opportunity through its focus on quality generic medicines, retail pharmacy expansion and customer-centric healthcare access.
Source: RBI Annual Report 2025-26, Economic Survey 2025-26
The global pharmaceutical industry continued to demonstrate resilience through 2025 and 2026, supported by the essential nature of healthcare demand, rising chronic disease burden, ageing populations, higher healthcare spending and continued innovation across biologics, biosimilars, specialty drugs and digital health platforms. According to Grand View Research, the global pharmaceutical market was valued at USD 1,738.00 billion in 2025 and is estimated to reach USD 1,837.00 billion in 2026, with projections of USD 2,776.70 billion by 2033, growing at a CAGR of 6.10% during 2026-2033; reflecting strong long-term demand across prescription drugs, generic medicines, specialty therapies and chronic disease management.
As a result, several economies are encouraging domestic manufacturing, strategic stockpiling and local investment in APIs, key starting materials, biologics and medical devices. This is expected to gradually reconfigure pharmaceutical and medical device supply chains, with companies placing greater emphasis on resilience, local sourcing, supply continuity and regulatory preparedness.
Innovation remains a key growth driver for the sector. Global demand is shifting towards differentiated and high-value products, including biologics, antibody-drug conjugates, cell and gene therapies, biosimilars and GLP-1 therapies for diabetes and obesity management. Demand for GLP-1 weight-loss drugs remains strong, with producers in this segment expected to see significant growth opportunities over the medium term.
Pharmaceutical Market size by molecule Type, 2023-2033
? Biologics & Biosimilars (Large Molecules): 2023 (approx 600), 2024 (approx 650), 2025 (approx 700), 2026 (approx 750), 2027 (approx 800), 2028 (approx 850), 2029 (approx 900), 2030 (approx 950), 2031 (approx 1000), 2032 (approx 1050), 2033 (approx 1100)
? Conventional Drugs (Small Molecules): 2023 (approx 800), 2024 (approx 850), 2025 (approx 900), 2026 (approx 950), 2027 (approx 1000), 2028 (approx 1050), 2029 (approx 1100), 2030 (approx 1150), 2031 (approx 1200), 2032 (approx 1250), 2033 (approx 1300)
? Total: 2023 (approx 1400), 2024 (approx 1500), 2025 (approx 1600), 2026 (approx 1737.9), 2027 (approx 1836.9), 2028 (approx 2000), 2029 (approx 2100), 2030 (approx 2200), 2031 (approx 2300), 2032 (approx 2400), 2033 (approx 2776.7)
During 2025, global pharmaceutical production witnessed a sharp increase, partly driven by front-loading activity in anticipation of U.S. tariff actions. However, production growth is expected to normalise in 2026 as the impact of the earlier inventory build-up unwinds. The industry has also faced indirect challenges from geopolitical developments, including the Gulf conflict, which has increased oil and gas prices and added pressure on manufacturing, transportation, cold-chain logistics, APIs, packaging and air freight costs. While the direct exposure of the Middle East to global pharmaceutical ingredient production remains limited, prolonged logistics disruptions can materially affect cost structures and supply-chain reliability.
A major policy theme shaping the sector is the increasing role of industrial policy in global healthcare supply chains. The COVID-19 pandemic, geopolitical tensions and tariff risks have highlighted the vulnerability of countries that depend heavily on imported active pharmaceutical ingredients and critical medicines.
Artificial Intelligence is also expected to improve productivity in the pharmaceutical sector, particularly by supporting drug discovery, preclinical research, clinical trial design and R&D efficiency.
North America continued to remain the largest pharmaceutical market, supported by high healthcare spending, strong R&D investments, demand for specialty medicines, adoption of biologics and biosimilars, and rising prevalence of chronic diseases. The U.S. market also remains important for patented medicines, personalized therapies and advanced drug development. However, policy uncertainty around tariffs, pricing actions and rehorhing incentives is expected to influence industry strategy. While tariffs are expected to have a limited direct impact on generics, companies are likely to increase U.S. based R&D and manufacturing investments to strengthen supply-chain resilience. At the same time, patent expiries and higher biosimilar adoption are expected to increase competition and support greater affordability.
Asia Pacific is expected to remain the fastest-growing pharmaceutical region, supported by rising healthcare expenditure, expanding insurance coverage, growing middle-class populations, higher diagnosis rates and increasing demand for chronic disease treatment. The region is also benefiting from policy support for local manufacturing, biologics production, API self-reliance and wider healthcare access.
India continues to strengthen its position as a key global pharmaceutical hub, supported by a large domestic market, cost-efficient manufacturing base, strong formulation capabilities and leadership in generic medicines. Government initiatives aimed at reducing dependence on imported APIs, encouraging domestic production of key starting materials and drug intermediates, and strengthening pharmaceutical manufacturing capabilities are expected to further support the sector.
For India, the long-term opportunity remains strong in affordable medicines, chronic therapies, branded generics, private-label generics and pharmacy retail. Rising healthcare awareness, higher insurance penetration, increasing diagnosis of chronic diseases and growing preference for cost-effective medicines are expected to support domestic demand. These trends are directly relevant for Zota Health Care Limited, as the Companys Davinda model is aligned with the structural shift towards quality generic medicines and affordable healthcare access.
Europe remains a major pharmaceutical market, supported by strong healthcare systems, established manufacturing capabilities, high R&D intensity and an ageing population. However, after a sharp production increase in 2025 due to front-loading ahead of U.S. tariff uncertainty, production growth is expected to normalise in 2026, reflecting inventory correction and softer external demand.
The European pharmaceutical sector also continues to face cost pressures from higher energy prices, raw material inflation, transportation costs and higher inventory requirements. Generic drug manufacturers and CDMOs remain more exposed to margin pressure due to regulated pricing and limited cost pass-through.
Nevertheless, long-term demand remains supported by ageing populations and the rising need for chronic and age-related therapies.
Rising chronic disease burden: Increasing prevalence of cancer, cardiovascular disorders, diabetes, obesity and respiratory conditions is driving sustained demand for long-term therapies and specialty medicines.
Ageing population: Higher life expectancy and ageing demographics in developed as well as emerging markets are increasing demand for chronic-care, geriatric and specialty therapies.
Generics and biosimilars: Patent expiries, pricing pressure and healthcare cost-control measures are supporting greater adoption of generics and biosimilars, improving affordability and access.
Shift towards innovation: Biologics, biosimilars, cell and gene therapies, antibody-drug conjugates and personalized medicines are reshaping future revenue pools.
Digital health and AI adoption: Artificial Intelligence, digital pharmacy platforms, telemedicine and remote patient monitoring are expected to improve drug discovery, patient access and healthcare delivery efficiency.
Supply-chain resilience: Countries are increasingly focusing on local manufacturing, API security, strategic stockpiling and supply-chain diversification to reduce dependence on concentrated sourcing markets.
The global pharmaceutical industry is expected to remain on a positive long-term growth path, supported by essential healthcare demand, rising chronic disease prevalence, ageing populations, wider access to medicines and continued innovation in advanced therapies. Although growth may normalise in 2026 after the production surge witnessed in 2025, the sector remains structurally resilient due to the non-discretionary nature of healthcare spending and increasing demand for affordable medicines.
At the same time, the industry is expected to navigate pricing pressure, regulatory scrutiny, supply-chain disruptions, geopolitical risks, patent expiries and rising R&D costs. These factors are likely to accelerate the shift towards generics, biosimilars, supply-chain diversification, operational efficiency and technology-led innovation.
Over the medium to long term, developed markets are expected to remain important demand centres, driven by ageing populations and higher incidence of chronic and lifestyle-related diseases. Emerging markets are also expected to see steady growth, supported by improving insurance penetration, better access to diagnostics and increasing treatment awareness. However, cost-containment measures, drug price negotiations and healthcare spending controls may continue to weigh on margins and influence future investment decisions.
Source: Grand View Research, Industry reports
The global pharmaceutical industry continued to the Indian pharmaceutical industry continued to strengthen its position as one of the most important pillars of the global healthcare ecosystem during FY2025-26. India remains the third-largest pharmaceutical producer globally by volume and is recognised as the Pharmacy of the World due to its leadership in affordable medicines, generic formulations and low-cost vaccines. The industry continues to be driven by strong domestic demand, exports, cost-efficient manufacturing and increasing policy support.
According to IBEF and Mordor Intelligence, the Indian pharmaceutical market was estimated at USD 57.61 billion in 2025 and is expected to reach USD 60.32 billion in 2026, with projections of USD 79.74 billion by 2031, growing at a CAGR of 5.74%. The domestic pharmaceutical market also recorded healthy momentum, with sales of 2,46,000.00 crore in FY2026, reflecting 8.80% year-on-year growth from 2,26,000.00 crore in FY2025. This growth was supported by rising healthcare awareness, increasing chronic disease burden, expanding access to medicines and Indias strong retail pharmacy network.
Indias global relevance continues to be supported by its leadership in generics and vaccines. The country supplies nearly 20.00% of global generic medicines, over 50.00% of Africas generic medicine requirement, nearly 40.00% of generic demand in the United States, and approximately 25.00% of all medicines in the United Kingdom. India is also a leading supplier of low-cost vaccines, contributing significantly to UNICEF and WHO vaccine requirements. This cost-competitive and quality-focused manufacturing base continues to support Indias role in improving global access to affordable healthcare.
Indian Pharmaceutical Market (In USD Billion)
Generics continue to form the backbone of Indias pharmaceutical industry. India manufactures more than 60,000 generic brands across 60 therapeutic categories, supported by strong formulation capabilities, skilled manpower and regulatory compliance, skilled infrastructure. The increasing global demand for affordable medicines, rising patent expenses and growing pressure to expand the market to reduce treatment costs are global generics market.
Generics continue to form the backbone of Indias pharmaceutical industry. India manufactures more than 60,000 generic brands across 60 therapeutic categories, supported by strong formulation capabilities, skilled manpower and regulatory compliance, skilled infrastructure. The increasing global demand for affordable medicines, rising patent expenses and growing pressure to expand the market to reduce treatment costs are global generics market.
In the domestic market, acceptance of quality generic medicines continues to improve, supported by rising consumer awareness, affordability needs and government-backed initiatives such as the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP). As on December 31 2025, 17,990 Jan Aushadhi Kendras were operational across India, offering 210,000 medicines and 315 surgicals, medical consumables and devices. The network has since expanded to more than 19,000 Kendras, covering all districts across the country. The scheme has also created self-employment opportunities with sustainable earnings, with average monthly sales per Kendra increasing to around 1.50 lakhs. With continued government efforts to promote the use of generic medicines, demand is expected to strengthen further. These products are generally sold at prices of 50.00% to 80.00% lower than comparable branded medicines, helping reduce out-of-pocket healthcare expenditure for consumers.
The Government of India continues to support the pharmaceutical sector through several policy measures aimed at strengthening domestic manufacturing, reducing import dependence and improving supply-chain resilience. The Production Linked Incentive (PLI) schemes are playing a key role in encouraging domestic production of APIs, key starting materials, drug intermediates, pharmaceuticals and medical devices. Under the PLI Scheme for critical KSMs, drug intermediates and APIs, the Government has approved 48 projects, covering 33 products, with actual investment of 4,763.34.00 crore up to September 2025.
The PLI Scheme for Pharmaceuticals has also supported product diversification into higher-value segments such as bio-pharmaceuticals, complex generics, patented or near-patent-expiry drugs, orphan drugs, APIs, anti-cancer drugs, anti-diabetic drugs, cardiovascular drug and other critical therapies. As of September 2025, cumulative sales under the scheme reached to 3,16,797.00 crore, including exports of 2,03,730.00 crore, surpassing the schemes overall sales target. The scheme has also enabled the establishment of over 350 manufacturing units, including 28 greenfield projects, while supporting employment generation and export competitiveness.
Indias pharmaceutical industry is gradually moving beyond its traditional strength in low-cost generic medicines towards innovation-led and high-value segments such as biologics, biosimilars, complex generics, precision medicine and novel medical devices. The Union Budget 2026-27 proposed the Biopharma SHAKTI initiative with an outlay of 10,000.00 crore over five years, aimed at strengthening Indias ecosystem for biologics and biosimilars and supporting the countrys ambition to become a global biopharma hub.
The initiative focuses on building end-to-end capabilities in biopharma through domestic development and manufacturing of high-value products, reduction in import dependence, expansion of NIPERs, creation of over 1,000 accredited clinical trial sites, and strengthening of regulatory capacity through enhanced technical manpower at CDSCO. This marks an important shift in Indias pharmaceutical strategy, from being primarily a cost-efficient generic medicine producer to becoming a stronger participant in advanced biopharmaceutical products.
Pharmaceutical exports remain a key growth engine for the Indian industry. India exports pharmaceutical products to more than 200 countries, including highly regulated markets such as the United States, Western Europe, Japan and Australia. IBEF reported that Indias pharmaceutical exports stood at USD 31.11 billion in FY2026, compared to USD 30.38 billion in FY2025. The export basket continues to be supported by drug formulations, biologics, bulk drugs, intermediates, vaccines and other pharmaceutical products.
The Department of Pharmaceuticals Annual Report 2025-26 also highlighted that Indias pharmaceutical exports stood at 2,45,962.00 crore in FY2024-25, while imports were significantly lower at 63,573.00 crore, reflecting the sectors strong trade surplus contribution. Indias export strength is supported by its cost advantage, large manufacturing base, regulatory compliance, and established presence across both emerging and regulated markets.
Indias domestic pharmaceutical demand continues to benefit from structural healthcare trends, including rising incidence of chronic diseases, ageing population, increasing diagnosis rates, higher health awareness and improving insurance coverage.
Therapeutic areas such as cardiovascular, anti-diabetic, gastro-intestinal, oncology, respiratory and anti-infective medicines continue to see strong demand. The ongoing shift from acute therapies to chronic and lifestyle-related therapies is expected to support recurring medicine consumption and long-term market growth.
Expansion of healthcare access is also supporting domestic growth. New business models are expected to increase penetration in Tier-2, Tier-3 and rural markets, while digital health platforms, e-pharmacy models, teleconsultation and integrated diagnostics are improving patient access and convenience. Government schemes such as PMBJP, Ayushman Bharat Digital Mission and investments in healthcare infrastructure are expected to further strengthen medicine availability and affordability across India.
Alongside pharmaceuticals, the medical devices sector is emerging as an important growth area. India is among the fastest-growing medical device markets globally and is the fourth-largest market in Asia after Japan, China and South Korea. IBEF estimates Indias medical devices market at USD 18.30 billion in 2026, with projections of USD 26.66 billion by 2031, growing at a CAGR of 7.82%. Policy measures such as medical device parks, common infrastructure facilities and PLI support are expected to reduce import dependence and improve domestic manufacturing competitiveness.
India is also gaining traction as a preferred destination for contract research and manufacturing services. The CRAMS/CRDMO opportunity is being supported by global outsourcing trends, Indias cost advantage, scientific talent base and improving regulatory capabilities. IBEF notes that Indias CRDMO industry is expected to double to USD 14.00 billion by 2028, reinforcing Indias position in global pharmaceutical supply chains.
The outlook for the Indian pharmaceutical industry remains positive, supported by rising domestic healthcare demand, strong export potential, increasing acceptance of generic medicines, improving healthcare access and continued government focus on manufacturing self-reliance. Policy measures such as PLI schemes, Bulk Drug Parks, Strengthening of Pharmaceutical Industry Scheme, PRIP, Biopharma SHAKTI and PMBJP are expected to strengthen Indias position across generics, APIs, biologics, biosimilars, medical devices and innovation-led healthcare solutions.
For Zota Health Care Limited, these industry trends provide a favourable operating environment. The growing demand for quality and affordable medicines, deeper penetration of generic drugs, expanding retail pharmacy access and increasing consumer awareness directly support the Companys Davandia business model. As affordability becomes a central theme in Indias healthcare landscape, Davandia is well aligned with the broader national objective of improving access to cost-effective and quality medicines for a wider population.
Sources: IBEF, Moroder Intelligence, Govt. of India Department of Pharmaceuticals Annual Report
As global healthcare systems continue to prioritize accessibility and cost efficiency, Indias role as a leading exporter of generic medicines remains a cornerstone in the worldwide transformation of healthcare. With strong capabilities in research and development, a skilled workforce, cost-efficient manufacturing, and a well-established regulatory framework, India has emerged as one of the most reliable suppliers of high-quality generics at competitive prices.
According to IMCAR, the India generic drugs market size reached to USD 30.00 billion in 2025. The market is expected to reach USD 53.50 billion by 2034, exhibiting a growth rate (CAGR) of 6.42% during 2026-2034. The market growth is attributed to a strong pharmaceutical manufacturing base, government initiatives like the PLI scheme to boost domestic API production, rising healthcare demand, cost-effective drug production, growing exports, and an increasing prevalence of chronic diseases.
Rising demand for affordable healthcare is shaping the growth of Indias generics market. With rising healthcare costs and limited affordable access to branded medications, patients and increasing number of healthcare providers are turning to generic drugs as a cost-effective alternative. Generic medications offer comparable efficacy, safety, and quality to branded equivalents at a fraction of the cost, making them an attractive option for individuals seeking affordable treatment options. According to the National Health Profile of India, healthcare expenditure has been increasing steadily, with a significant focus on reducing out-of-pocket expenses for medical care. Using generic medicines can save patients as much as 60.00% to 90.00% on their medication costs.
This affordability makes it easier for people to access essential treatments for Chronic conditions like Diabetes, Hypertension, Cardiovascular & Neurovascular diseases, medicines including anti-hypertensives, statins, antiplatelet drugs, and anticoagulants remain robust, as these therapies form the backbone of long-term disease management. Initiatives such as the National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) and Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) continue to expand access to cost-effective treatments, reinforcing the role of generics in ensuring healthcare equity across India.
WHO estimates that approximately 77 million individuals above the age of 18 in India suffer from type 2 diabetes, and 25 million are at a greater risk of developing diabetes. The rising cases of such diseases, coupled with changing lifestyles and the expansion of the aging population, are propelling the requirement for long-term medications that are cost-effective and are preferred by both healthcare providers and patients, supporting the India generic drugs market growth.
Indias leadership in generic cardiovascular drugs is further supported by a strong base of domestic pharmaceutical companies, along with favourable regulatory and policy support for indigenous manufacturing. Together, these factors strengthen Indias position as a critical supplier of essential medicines for both domestic and global markets.
However, the sector continues to face challenges such as patent litigations, intellectual property issues, and global pricing pressures. Addressing these structural hurdles through coordinated efforts among regulators, industry participants, and healthcare providers will be crucial in sustaining growth and ensuring uninterrupted access to affordable generics for patients worldwide.
The continued expansion of Jan Aushadhi Kendras and growing acceptance of generic medicines indicate a broader structural shift in Indias healthcare market towards affordability, accessibility and quality-assured generics. This trend supports the long-term opportunity for private-label generic pharmacy models such as Davaindia. With increasing consumer awareness, rising chronic-care medicine needs and growing acceptance of affordable alternatives, Zota Health Care Limited is well positioned to benefit from the expanding market share for quality generic medicines in India.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is one of the Government of Indias flagship initiatives for improving access to quality generic medicines at affordable prices. The scheme was launched with the objective of making essential medicines available to all sections of society, particularly economically weaker groups, while promoting awareness that lower-priced generic medicines can be safe, effective and quality-assured.
Under the scheme, dedicated outlets known as Jan Aushadhi Kendras provide generic medicines and medical devices at prices that are generally 50.00% to 80.00% lower than comparable branded products. This has helped reduce the out-of-pocket healthcare expenditure of consumers and improved access to medicines for patients requiring regular treatment.
The Jan Aushadhi Kendra network has continued to expand steadily across India. As per the Department of Pharmaceuticals Annual Report 2025-26, 17,990 Kendras were operational as on December 31, 2025. This increased to 18,646 Kendras by February 2026 and has since crossed 19,000 Kendras, covering all districts in the country. The Government has further set a target to expand the network to 25,000 Kendras by March 2027, reinforcing its focus on improving access to affordable generic medicines.
The PMBJP product basket has also expanded meaningfully. As on December 31, 2025, the scheme covered 2,110 medicines and 315 surgicals, medical consumables and devices, across major therapeutic categories including cardiovascular, anti-cancer, anti-diabetic, anti-infective, anti-allergic, gastro-intestinal medicines, nutraceuticals and other products.
Quality assurance remains a key feature of the scheme. Medicines supplied under PMBJP are procured only from WHO-GMP certified suppliers, and each batch is tested at NABL-accredited laboratories before being dispatched to Jan Aushadhi Kendras. This quality-control framework supports confidence in generic medicines and helps address misconceptions around the efficacy of lower-priced medicines.
PMBJP has also created meaningful social impact. The scheme supports womens health through Jan Aushadhi Suvidha sanitary napkins, which are sold at 11.00 per pad. As per the Department of Pharmaceuticals Annual Report 2025-26, over 98.34 crore Suvidha sanitary napkins had been sold since 2019 up to December 31, 2025. The scheme also promotes entrepreneurship with 7,872 Jan Aushadhi Kendras opened by women as on December 31, 2025.
The scheme has also strengthened last-mile availability through an IT-enabled supply-chain system, central and regional warehouses, distributors across States and Union Territories, and the Jan Aushadhi SUGAM mobile app, which allows users to locate nearby Kendras, search medicines, compare prices and check availability.
FY26 marked a significant year of growth and operational improvement for Zota Health Care Limited. The Company delivered a strong financial performance, supported by the continued scale-up of its Davaindia retail business, higher contribution from mature stores, improved product mix and increasing benefits of operating leverage.
On a consolidated basis, revenue from operations stood at 53,865.75 lakhs in FY26, registering a robust growth of 83.86% year-on-year. This growth was primarily driven by the rapid expansion of the Davaindia store network and strong same-store traction across existing stores. The Davaindia business continued to emerge as the key growth driver for the Company, contributing 41,741.47 lakhs during the year and nearly doubling over the previous year.
The Companys other business segments also contributed to the overall performance. Domestic sales stood at 6,794.29 lakhs, reflecting steady progress, while export sales contributed 3,471.09 lakhs, maintaining stability during the year. The Everyday Herbal business contributed 1,846.33 lakhs, indicating growing traction in the consumer products segment.
The Company reported a consolidated gross profit of 32,468.90 lakhs in FY26, reflecting strong growth of over 108.57% year-on-year. Gross margin improved significantly by 714 basis points to 60.28%, supported by scale efficiencies, better product mix and increased contribution from the Davaindia business.
A key highlight of FY26 was the Companys turnaround at the operating level. Zota Health Care achieved positive EBITDA of 2,597.73 lakhs, as compared to negative EBITDA in FY25. EBITDA margin for the full year stood at 4.82%, reflecting improved operating efficiency and better absorption of fixed costs as the business scaled up.
From an operational perspective, the Davaindia business witnessed strong network expansion during the year. As on March 31, 2026, the total Davaindia store network stood at 2,579 stores, compared to 1,582 Company-Owned Company-Operated (COCO) stores and 997 Franchisee-Owned Franchisee-Operated (FOFO) stores as on March 31, 2026, reflecting a substantial increase in retail presence across India.
Same Store Growth (SSG) remained one of the key performance indicators during the year. The Company witnessed strong SSG across its store cohorts in FY26.
Overall, FY26 was a transition year for Zota Health Care Limited, during which the Company significantly expanded its store network, scaled revenues, improved gross margins, achieved positive EBITDA and strengthened its operating foundation. Going forward, the Company will continue to focus on improving profitability, enhancing store-level economics, maintaining financial discipline and leveraging the long-term growth opportunity in Indias affordable healthcare and generic medicine market.
| Particulars | FY26 | FY25 | Variation % |
| Current Ratio | 2.39 | 3.08 | -22.40 |
| Debt - Equity Ratio | 0.02 | 0 | N.A. |
| Debt Service Coverage Ratio | 127.16 | 12.16 | 945.72 |
| Return on Equity Ratio | 0.03 | 0.03 | 0.00 |
| Inventory Turnover Ratio | 5.7 | 5.17 | 10.25 |
| Trade Receivables Turnover Ratio | 2.92 | 2.91 | 0.34 |
| Trade Payables Turnover Ratio | 4.11 | 4.54 | -9.47 |
| Net Capital Turnover Ratio | 2.33 | 2.05 | 13.66 |
| Net Profit Ratio | 0.07 | 0.03 | 133.33 |
| Return on Capital Employed | 0.04 | 0.04 | 0.00 |
| Return on Investment | 0.03 | 0.03 | 0.00 |
Note: Financial Ratios have been calculated based on the Standalone numbers
Explanation for Change in the Ratio by more than 25.00% as compared to previous year:
The pharmaceutical and healthcare industry operates in a highly regulated and evolving business environment. Given the essential nature of medicines and healthcare products, companies in this sector are required to maintain high standards of quality, compliance, ethics, transparency and customer trust. Zota Health Care Limited continues to remain focused on complying with applicable laws, regulatory requirements and quality standards across its business operations, including its pharmaceutical and retail pharmacy segments.
While the long-term outlook for the healthcare and affordable generics market remains encouraging, the Company remains exposed to certain internal and external risks that may impact its operations, financial performance and growth plans. These risks are regularly reviewed by the management, and suitable mitigation measures are undertaken wherever required.
Zota Health Care Limited has established an internal control framework that is designed to commensurate with the size, nature and complexity of its business operations. The framework provides reasonable assurance with respect to safeguarding of assets, accuracy of financial records, prevention and detection of errors and irregularities, compliance with applicable laws, and orderly conduct of business operations.
The Companys internal control systems are supported by defined policies, standard operating procedures, approval mechanisms, reporting structures and periodic reviews.
These controls are aimed at ensuring disciplined operations, effective resource utilization, reliable financial reporting and adherence to statutory and regulatory requirements.
The Audit Committee and the management periodically review the adequacy and effectiveness of the internal control systems. Observations arising from internal audits, process reviews and management assessments are evaluated, and corrective actions are implemented wherever necessary. Listed companies are required to maintain adequate internal financial controls, and statutory auditors are also required to report on the adequacy and operating effectiveness of such controls under the Companies Act, 2013.
Regulatory and Compliance Risk: The pharmaceutical sector is governed by various domestic and international regulations relating to product quality, manufacturing, pricing, distribution, labelling, promotion and customer safety. Any change in these regulations, delay in approvals, inspection observations or noncompliance may impact business operations, product availability, expansion plans and profitability. Regulatory expectations in India are also becoming more stringent, with increased focus on GMP compliance, data integrity, quality systems and inspection preparedness.
Quality and Product Safety Risk: The Companys business depends on the consistent delivery of safe, effective and quality products. Any quality deviation, product recall, adverse customer experience or failure to maintain required standards may affect consumer confidence, brand reputation and regulatory standing.
Industry Reputation and Ethical Conduct: The healthcare industry is built on trust. Any unethical practices, mis-information, poor quality products or non-compliant behaviour by market participants can adversely affect the overall perception of the sector and may also impact emerging and growing companies operating in the affordable healthcare space.
Working Capital and Inventory Management Risk: The pharmaceutical retail and distribution business requires efficient management of inventory, receivables, payables and store-level working capital. Any mismatch in inventory planning, slow-moving stock, higher credit exposure or inefficient working capital management may affect cash flows and operating efficiency.
Brand and Customer Trust Risk: The Davaniida and the Companys retail pharmacy model is closely linked to customer trust, service quality and product reliability. Any lapse in customer service, product availability, pricing discipline or ethical practices may impact brand equity and long-term customer loyalty.
Supply Chain and Vendor Dependence: Timely availability of quality pharmaceutical products and raw materials is critical for business continuity. Dependence on key suppliers, logistics partners or specific sourcing channels may expose the Company to risks arising from supply disruptions, price volatility, regulatory restrictions or quality-related issues. The Indian pharmaceutical supply chain is also witnessing increasing focus on quality, traceability, Good Distribution Practices and technology-led monitoring.
Foreign Exchange and Export Market Risk: The Companys exposure to international markets may result in risks related to currency fluctuations, changes in trade policies, geopolitical developments and country-specific regulations. Any adverse currency movement or change in import/export regulations may impact margins and business performance.
Intellectual Property and Brand Protection Risk: Protection of intellectual property, trademarks, formulations, packaging design and brand identity is important for maintaining competitive advantage. Any infringement, counterfeit product issue or unauthorized use of the Companys brand may affect market positioning and customer confidence.
Technology and Digital Transformation Risk: With increasing digital adoption in healthcare, pharmacy retail and customer engagement, the Companys ability to invest in and adopt suitable technology platforms remain important. Failure to adapt to changing digital trends, data security requirements or technology-led customer expectations may impact competitiveness.
Cybersecurity and Data Protection Risk: As the Company expands its digital presence through online platforms, mobile applications and technology enabled operations, protection of customer data, business information and digital systems becomes critical. Any cybersecurity breach, system downtime or data misuse may lead to operational, reputational and regulatory risks.
Global Health and Business Continuity Risk: Events such as pandemics, public health emergencies, natural disasters or geopolitical disruptions may affect supply chains, consumer demand, store operations and employee availability. Strong contingency planning and operational flexibility remain essential to manage such situations effectively.
Expansion and Execution Risk: The Company continues to scale its Davaniida retail network through company-operated and franchise-led formats. Rapid expansion requires strong execution capabilities, trained manpower, efficient store-level operations, consistent product availability and adherence to brand standards. Any delay or inefficiency in execution may impact growth plans and profitability.
Compliance Cost and Margin Pressure: Expansion into new geographies, growing regulatory expectations and investment in quality systems may increase compliance and operating costs. In addition, pricing pressure in the affordable medicines segment may require continuous focus on cost efficiency, procurement discipline and operating leverage.
Manpower and Talent Availability Risk: The Companys growth, especially in the retail pharmacy business, depends on the availability of skilled, trained and customer-focused manpower across stores, supply chain, quality, sales and corporate functions. Rapid expansion of the Davaniida network requires timely hiring, training and retention of employees who can maintain consistent service standards, operational discipline and compliance requirements. Any shortage of qualified manpower, higher attrition, inadequate training or delay in building store-level capabilities may affect operational efficiency, customer experience and execution of growth plans. The Company continues to focus on employee training, capability building, performance management and engagement initiatives to manage this risk effectively.
The Company continues to proactively identify, assess and monitor key risks through a structured review mechanism. By strengthening governance practices, improving operational processes, investing in technology and maintaining a strong compliance culture, Zota Health Care Limited aims to build resilience and sustain long-term growth in a dynamic healthcare environment.
The Company has implemented policies and procedures covering key business areas, including procurement, inventory, sales, finance, store operations, compliance, human resources and information technology.
The internal audit function independently reviews business processes, control effectiveness and compliance with approved systems. Audit findings are discussed with the management and placed before the Audit Committee for review and guidance.
The Company follows structured financial reporting processes to ensure accuracy, completeness and timely reporting of financial information. Adequate checks and approvals are built into financial transactions to support transparency and accountability.
Internal controls are periodically reviewed and updated to address emerging business risks, regulatory changes, digital risks and operational requirements.
The Company continues to strengthen the use of digital systems and technology-led tools to improve operational monitoring, inventory management, reporting efficiency and decision-making.
The Company places strong emphasis on compliance with applicable laws, regulatory filings, statutory obligations and corporate governance practices. SEBI LODR Regulations continue to provide a framework for transparency, timely disclosures and governance requirements for listed entities.
Clear roles, responsibilities and approval hierarchies help ensure accountability across functions and support effective implementation of internal controls.
The Company regularly reviews business processes and adopts corrective measures wherever required to improve efficiency, strengthen controls and reduce operational risks.
The management believes that the existing internal control systems are adequate and operating effectively. The Company remains committed to continuously improving its control framework to support business growth, protect stakeholder interests and ensure the integrity of financial and operational reporting.
At Zota Health Care Limited, people are central to the Companys growth journey. The Company believes that a skilled, motivated and committed workforce is essential for building a sustainable business, delivering quality customer service and supporting the expansion of its pharmaceutical and retail pharmacy operations.
During the year FY26, the Company continued to focus on strengthening its human capital through training, capability building, employee engagement, performance management and a positive workplace culture. As the Company expands its Davandia network across India, attracting, developing and retaining the right talent remains a key priority. Davandia had a growing retail presence across PAN India with 1,656 COCO stores and 923 FOFO active stores.
As on March 31, 2026, our workforce stood at 7,094 employees, with 620 members in ZOTA and 6,327 members in Davandia Health Mart Limited and 147 members in Everyday Herbal Beauty Care Limited.
The Company conducted training and development initiatives to improve employee skills, product knowledge, customer service standards, compliance awareness and operational efficiency.
A structured performance review process helps evaluate employee contribution, aligning individual goals with business objectives and recognize performance across functions.
The Company continued to promote employee engagement through open communication, team interactions and initiatives aimed at building a collaborative work environment.
With the expansion of the Davandia retail network, the Company focused on building store-level capabilities, improving operational discipline and creating a stronger talent pipeline.
Industrial relations remained cordial during the year. The Company recognizes the contribution of its employees in driving growth, improving service standards and strengthening the Davandia brand. Going forward, Zota Health Care Limited will continue to invest in people development, leadership capability, technology adoption and employee engagement to build a future-ready workforce.
The Management Discussion and Analysis section of this report contains statements about the Companys objectives, projections, estimates, expectations, and outlook for the future. These may be considered forward-looking statements and must be read with due caution. Actual performance and results may differ materially from those expressed or implied, owing to a variety of risks and uncertainties.
A multitude of critical elements has the capacity to influence our business operations substantially. These elements encompass the economic and political conditions in India and other nations where we conduct business, fluctuations in interest rates, alterations in governmental regulations and policies, modifications in taxation laws, and other relevant factors. It is important to underscore that our company does not assume any obligation to revise or publicly update any forward-looking statements in response to new information, future events, or otherwise, subsequent to the date of this report or to reflect the occurrence of unanticipated events.
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