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% 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, 27 closed, and a net addition of 60 stores in the quarter.

• Private label products now constitute 19.6% of total revenue, with significant expansion in SKUs and increased share in pharma, supporting margin growth.

• Board approved unaudited financial results, reflecting the merger of MHS Pharmaceuticals Private Limited, restated from April 1, 2023.

• Focus remains on balancing growth with profitability, enhancing operational efficiency, and supporting scalability through backend and infrastructure improvements.

Financial highlights

• Consolidated revenue for Q3 FY25 was INR 15,614 million, up from INR 14,414.72 million in Q3 FY24.

• Consolidated operating EBITDA was INR 799 million (5.1% margin), up 71.5% year-over-year; pharmacy operating EBITDA was INR 780 million (5.1% margin).

• Gross margin improved to 25.0%, up 130 bps sequentially and 290 bps year-over-year.

• Net profit after tax for Q3 FY25 was INR 458.7 million, with basic EPS at INR 3.84.

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

Outlook and guidance

• Expecting 300 net store additions for the full financial year, with at least 600 new stores planned for next year.

• Private label share targeted to increase by 1% per quarter, aiming for 75-77% product coverage in the medium term.

• Gross margin expected to improve by 20 basis points for every 1% increase in private label share.

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

• Same-store sales growth (SSG) expected to sustain at 4-5% annually.