MedPlus Health Services (MEDPLUS) investor relations material

Executive summary

• Consolidated revenue for Q3 FY26 reached INR 18,061 million, up 15.7% year-over-year, with net profit at INR 577.88 million and auditors expressing an unmodified opinion.

• Net addition of 182 stores in Q3 FY26, bringing the total to 5,112 stores and over 2.6 million sq ft, with a cluster-based expansion strategy across 13 states and 1 union territory.

• Private label sales made up 22.2% of total revenues, with pharma at 11.6% and FMCG at 10.6%, supporting margin expansion.

• Diagnostic revenue rose to INR 326.7 million, up from INR 274.7 million YoY, with operating EBITDA margin at 15.5%.

• Board approved unaudited financial results and allotted 232,061 equity shares under ESOP 2021.

Financial highlights

• Operating EBITDA for Q3 FY26 was INR 968 million (5.4% margin), up 21.1% YoY, after a non-recurring labor code charge of INR 70.59 million.

• PAT for Q3 FY26 was INR 577.9 million, up 26% YoY.

• Gross margin improved to 26.2%, up 110 bps YoY.

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

• Free cash flow was negative at -INR 93 million due to capex and lease payments.

Outlook and guidance

• Targeting 600 new store additions in FY26, with similar or higher expansion expected for FY27.

• Plans to grow in existing clusters and develop new ones, focusing on omni-channel offerings and private label growth for higher margins.

• Gross margins expected to remain stable in the near term.

• Management aspires to reach 6% operating margin over the next couple of years, driven by private label growth.

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