MedPlus Health Services (MEDPLUS) Q3 25/26 earnings summary

Executive summary

• Net addition of 182 stores in Q3 FY26, bringing the total to 5,112 stores across 13 states and 1 union territory, with 2.6+ million sq ft in operation.

• Revenue for Q3 FY26 was INR 18,061 million, up 15.7% year-over-year and 7.5% sequentially.

• Private label sales comprised 22.2% of total revenue, with significant growth in pharma and FMCG categories.

• Store network expansion focused on cluster-based strategy and omni-channel service, supporting deeper market penetration.

• Board approved unaudited financial results for Q3 FY26, with auditors expressing an unmodified opinion.

Financial highlights

• Gross margin improved to 26.2%, up 110 bps year-over-year.

• Operating EBITDA after a non-recurring labor code charge was INR 968 million (5.4% margin), up 21.1% year-over-year.

• PAT for Q3 FY26 was INR 577.9 million, up 26% year-over-year.

• Pharmacy revenue grew 15.6% year-over-year; pharmacy operating EBITDA was INR 925 million (5.2% margin).

• Operating cash flow for the quarter was INR 905 million, with a closing cash and bank balance of INR 6,080 million.

Outlook and guidance

• Targeting 600 new store additions in FY26, with next year’s expansion expected to be at least similar.

• Plans to further grow in existing clusters and develop new ones, especially in cities where market leadership is not yet achieved.

• Focus on expanding omni-channel offerings and increasing private label contribution for higher margins.

• Company continues to monitor regulatory changes, including new Labour Codes, and will adjust accounting as needed.

• Management aspires to reach 6% operating EBITDA margin over time, driven by private label growth.