MedPlus Health Services (MEDPLUS) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 15,614 million in Q3 FY25, up 8.3% year-over-year and down 0.9% sequentially, with net profit rising 234.7% YoY to INR 458.7 million and PAT margin at 2.9%.

• Store network expanded to 4,612 outlets across 13 states and 1 union territory, with 87 new stores opened and a net addition of 60 stores in the quarter.

• Private label products now constitute 19.6% of total revenue, with significant growth in private label pharma share and SKUs expanded to over 1,200.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, reflecting the merger of MHS Pharmaceuticals Private Limited.

• Focus on balancing growth with profitability, enhancing operational efficiency, and investing in backend operations and infrastructure for scalability.

Financial highlights

• Consolidated revenue for Q3 FY25 was INR 15,614 million, up 8.3% YoY; consolidated net profit after tax was INR 458.7 million, with PAT margin at 2.9%.

• Gross margin improved to 25.0%, up 130 bps sequentially and 290 bps YoY; operating EBITDA reached INR 799 million (5.1% margin), up 71.5% YoY.

• Pharmacy operations contributed 99% of revenue, with pharmacy revenue up 12.3% YoY on GMV and 7.9% YoY on net basis.

• Diagnostic revenue grew to INR 274.7 million, with segment operating EBITDA of INR 22.1 million (8.1% margin), a turnaround from a loss last year.

• Operating cash flow for the quarter was INR 1,604 million, with closing cash and bank balance at INR 4,030 million and free cash flow at INR 898 million.

Outlook and guidance

• Targeting 300 net store additions for the full year and at least 600 new stores in the next year, with focus on deepening penetration in existing and new clusters.

• Private label share expected to increase by about 1% per quarter, with gross margin improvement of 15-20 basis points per quarter.

• Store-level EBITDA margin for mature stores expected to remain at or above 10-11%, with overall EBITDA margin seen as sustainable at current levels (5.1%).

• Same-store sales growth (SSG) expected to be in the 4-5% range going forward.

• Continued investment in omni-channel capabilities and <2 hour delivery expansion.