MedPlus Health Services (MEDPLUS) Q2 25/26 earnings summary

Executive summary

• Added 145 new stores in Q2 FY26, with a net addition of 117 stores after closures; network now at 4,930 stores across 13 states and 1 union territory, covering over 2.6 million sq ft.

• Achieved consolidated revenue of ₹16,793 million in Q2 FY26, up 6.5% year-over-year and 8.9% sequentially; net profit (PAT) rose 43.4% YoY to ₹555 million.

• Private label sales constitute 21.5% of total revenue; pharma at 12.1% and non-pharma at 9.6%.

• Diagnostic revenue grew to ₹332.5 million, with operating EBITDA margin for diagnostics improving to 15.3%.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with no material misstatements in auditor review.

Financial highlights

• Consolidated revenue for Q2 FY26 was ₹16,793 million, up from ₹15,761.72 million in Q2 FY25; H1FY26 revenue reached ₹32,220 million.

• Consolidated operating EBITDA stood at ₹887 million (5.3% margin), up 20% YoY; pharmacy operating EBITDA at ₹839 million (5.1% margin).

• Gross margin improved to 26.1%, up 240 bps YoY; PAT margin for Q2FY26 was 3.3%.

• Pharmacy revenue grew 8.8% YoY (GMV basis) and 6.3% YoY (net basis); store-level EBITDA margin for stores >12 months: 11.8%.

• Operating cash flow for Q2FY26 was ₹1,261 million, with a closing cash and bank balance of ₹6,085 million.

Outlook and guidance

• Targeting 600 new store additions in FY26; confident in meeting franchisee store addition targets.

• SSSG (same-store sales growth) turned positive at 2.2% in Q2; expected to reach high single digits (9-10%) over the next two years.

• Focus on increasing private label contribution in both pharma and FMCG categories for higher margins.

• No immediate expansion in diagnostics until subscription numbers increase; current CapEx model on hold.

• Management and auditors confirm compliance with accounting standards and regulatory requirements.