MedPlus Health Services (MEDPLUS) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated revenue of ₹15,426.34 million in Q1 FY26, up 3.6% YoY, with a net addition of 101 stores, expanding the network to 4,813 stores across 13 states and 1 union territory.

• Private label share in pharma rose to 20.4% from 7.9% YoY, driving gross margin improvement and contributing to a 5.7% YoY increase in private label revenue.

• Board approved unaudited financial results, auditor appointments, and ESOP allotment; 19th AGM scheduled for September 15, 2025.

• Amalgamation of MHS Pharmaceuticals Private Limited effective April 1, 2023, as per NCLT order.

Financial highlights

• Gross margin improved to 26.1%, up 400 bps YoY; consolidated net profit after tax for Q1 FY26 was ₹423.43 million, up 195.2% YoY.

• Pharmacy operations revenue grew 6.6% YoY on GMV basis; operating EBITDA was ₹728 million (4.7% margin).

• Diagnostic segment revenue increased to ₹302.9 million, with an operating EBITDA margin of 13.6%.

• Store-level EBITDA margin for stores older than 12 months was 10.9%, with operating ROCE at 59.8%.

• Operating cash flow for the quarter was ₹1,872 million, with a closing cash and bank balance of ₹5,549 million.

Outlook and guidance

• Targeting 600 new store additions in FY26, with at least 100 expected to be franchisee-run.

• Private label share expected to grow 0.5% per quarter on net sales, with gross margin improving by ~0.2% for every 0.5% increase.

• Diagnostic business expansion contingent on reaching 200,000–250,000 members.

• Focus on deepening penetration in existing clusters, omni-channel expansion, and continued investment in technology.

• IPO proceeds utilization update: ₹669.10 million remains unutilized and is placed as fixed deposits.