• Near-term financial turnaround: Zota expects its consolidated cash burn of roughly ₹45 crore to reduce to near zero at the PBT level in the current year, supported by same-store sales growth of 20–25% in mature stores and 40–50% in two-year-old stores.
• Store expansion pace: Expansion is moderating slightly in the second quarter to strengthen backend supply chains in Surat and Delhi/Haryana, though the full-year target of opening 600 to 700 stores remains intact.
• QIP proceeds deployment: Approximately 90% of the ₹350 crore raised via QIP will be allocated to DavaIndia to support working capital and open 1,300 to 1,500 COCO stores over the next two financial years.
• COCO store transition: The company is shifting its network target to 80% COCO and 20–25% FOCO over the next three years to prevent brand dilution and capture gross profit margins above 65%, compared to roughly 40% for franchise stores.
• Long-term margin guidance: Mature four-year-old COCO stores generate over 35% store-level EBITDA, and overall company EBITDA margins are expected to exceed 20–25% by FY30–FY31 as store networks mature over a 3-to-5-year cycle.