MedPlus Health Services (MEDPLUS) Q1 26/27 earnings summary

Executive summary

• Net addition of 146 stores in Q1 FY27, bringing the total network to 5,476 stores and 2.9 million+ sq ft, with 131 franchisees added and 52 store closures.

• Consolidated revenue for Q1 FY27 was INR 18,796 million, up 21.8% YoY, with operating EBITDA at INR 651 million (3.5% margin), and net profit at INR 331.67 million.

• Pharmacy revenue grew 21.8% YoY; diagnostics revenue increased to INR 370.8 million, up 22.4% YoY.

• Gross margin declined by 160 bps YoY to 24.5%, and operating EBITDA margin fell by 120 bps YoY to 3.5%.

• CapEx plans for Food Park and Wellness Services Facility totaling Rs. 1,550 million were approved but later put on hold following market and investor feedback.

Financial highlights

• Private label sales comprised 20% of total revenue (pharma 10.7%, non-pharma 9.3%), with branded pharma at 68.8%.

• Pharmacy operating EBITDA was INR 588 million (3.2% margin); store-level EBITDA margin for stores >12 months was 10.4%.

• PAT declined 21.7% YoY to 331.7 million, with PAT margin at 1.8%.

• Diagnostics segment operating EBITDA was INR 65.9 million, up 59.5% YoY.

• Net working capital was 54 days; warehouse inventory at 33 days; first-year stores held 100 days of inventory.

Outlook and guidance

• Targeting 800 net new store additions in FY27, with a 50/50 mix between franchisee and company-operated stores.

• Management expects to recover gross margin declines over the next quarters, with private label share projected to increase by 0.3–0.5% per quarter.

• Too early to revise full-year margin guidance; further clarity expected after Q2.

• FY27 Q1 revenue achievement was 99.0% of AOP, while operating EBITDA was 81.6% of AOP.

• Capex for Q1 FY27 was 338.4 million against an AOP of 548.8 million.