MedPlus Health Services (MEDPLUS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹20,371.08m, up 21.3% YoY; reported operating EBITDA was ₹981.1m, up 10.7% YoY.

• Operating EBITDA was ₹901m, or 4.4%, excluding a ₹79.6m one-time retention-provision reversal; reported margin was 4.8%.

• Q2 net profit was ₹560.69m, up 1.0% YoY; H1 net profit was ₹892.36m, down 8.8%.

• The network reached 5,642 stores after 166 net additions in Q2.

Financial highlights

• Q2 gross margin was ₹5,108.5m, up 16.3% YoY; the rate was 25.1%, down 110 bps YoY and up 60 bps QoQ.

• Pharmacy Retail Q2 revenue was ₹19,935.4m and operating EBITDA was ₹885.4m, a 4.4% margin.

• Private-label sales were 21.4% of revenue, split equally between pharma and non-pharma at 10.7% each; non-pharma sales grew 18% QoQ and pharma sales 5.9%.

• H1 revenue was ₹39,167.08m, up from ₹32,219.63m; H1 operating EBITDA was ₹1,632.3m, up 1.1% YoY.

• Basic EPS was ₹4.73 in Q2 versus ₹4.63 YoY; H1 basic EPS was ₹7.49 versus ₹8.17.

Outlook and guidance

• FY27 net additions remain targeted at 800 stores; management expects to exceed that level in FY28.

• FY27 operating EBITDA guidance is ₹380–400 crore, below the earlier ₹420–440 crore plan; management sees margin potentially rising from 4.8% toward 5%.

• Mature-store SSSG is expected at 9%–10.5%; ~4% growth is sufficient to maintain EBITDA at a steady store amid rent and salary increases.

• Management expects combined private-label mix to rise 0.5 percentage points QoQ, with non-pharma growth supported by adjacent product additions.

• Technology-enabled automation and warehouse consolidation are expected to reduce costs by 0.5%–0.75% over four quarters.