MedPlus Health Services (MEDPLUS) Q2 24/25 earnings summary

Executive summary

• Operates 4,552 pharmacy stores across 12 states and 1 union territory, with significant expansion in Tier 2 cities and beyond.

• Net addition of 108 stores in Q2FY25, with 59% of new stores in Tier 2 and smaller cities.

• Private-label products now constitute 18.4% of total revenue, with strong customer uptake and margin benefits.

• Store-level unit economics remain strong, with ROCE above 55% and 10.2% EBITDA margin for stores older than 12 months.

• Board approved unaudited financial results for Q2 and H1 FY25, with no material misstatements identified.

Financial highlights

• Consolidated revenue for Q2 FY25 was INR 15,762 million, up 11.9% year-on-year and 5.9% quarter-on-quarter.

• Gross margin improved to 23.7% in Q2FY25, up 210 bps year-over-year.

• Operating EBITDA reached INR 739 million (4.7% margin), and PAT for Q2FY25 was INR 387 million, up 166.1% year-on-year.

• Pharmacy revenue grew 18.4% year-on-year on GMV basis; store-level EBITDA margin for stores older than 12 months was 10.2%.

• Diagnostic segment revenue rose to INR 283.1 million, with operating EBITDA of INR 21 million (7.4%), turning positive from a loss last year.

Outlook and guidance

• Net store additions for FY25 expected to be 400–450, below the initial 600 target due to slower Q1 expansion.

• Gross margin and private-label contribution expected to continue rising, with management optimistic about sustaining or improving current margin levels.

• Focus on deepening penetration in existing clusters, expanding into new clusters, and omni-channel growth.

• Tax rate of around 19% expected to be sustainable, aided by deductions for new employee hiring.

• Management recognized deferred tax assets of INR 33.59 million on unused business losses and unabsorbed depreciation.