MADHAVBAUG - Vaidya Sane

📊 NSE: MADHAVBAUG 🏢 Healthcare 📅 Last Updated: 12/14/2025 14:52

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, total revenue reached INR 49.94 Cr, a 19.48% YoY increase. For FY24, Hospital Activity revenue was INR 21.73 Cr (up 9.3% from INR 19.87 Cr), while Sale of Products contributed INR 63.21 Cr (up 5.7% from INR 59.79 Cr). Common/Unallocable activity revenue declined to INR 12.39 Cr from INR 19.35 Cr.

Geographic Revenue Split

The company is primarily based in India with a corporate office in Thane, Maharashtra. It is expanding internationally with a foundation stone in Dubai and a partnership with Maxura in Malaysia to target international patient beds. Specific % split per region is not disclosed.

Profitability Margins

Net Profit Margin for H1 FY26 stood at 9.68%, a 66 bps YoY increase from 9.02%. However, FY24 saw a sharp decline in Net Profit Margin to 1.07% compared to 5.24% in FY23, primarily due to increased employee expenses and depreciation costs.

EBITDA Margin

EBITDA margin for H1 FY26 was 17.26%, up significantly from 13.7% in H1 FY25, representing a 49.59% YoY growth in absolute EBITDA to INR 8.62 Cr. The company targets a 20% EBITDA margin by FY28 through operating leverage.

Capital Expenditure

The company has planned a CAPEX of INR 45.00 Cr to be funded through a preferential issue of warrants. This investment is aimed at expanding the hospital and clinic network to reach 10 hospitals and 1,000 clinics by 2028.

Credit Rating & Borrowing

The Debt-Equity ratio increased to 3.50x in FY24 from 0.003x in FY23 due to a rise in short-term borrowings. Interest Coverage Ratio dropped by 82% to 6.85x in FY24 from 37.87x in FY23, reflecting higher interest obligations on outstanding overdraft balances.

⚙️ Operational Drivers

Raw Materials

Ayurvedic ingredients and herbs for Madhavprash and other medicinal products represent the primary raw material costs. Specific chemical or botanical names and their individual % of total cost are not disclosed.

Import Sources

Not disclosed in available documents; however, the company operates its own manufacturing capabilities for Ayurvedic products in India.

Capacity Expansion

Madhavprash production is scaling from 15,000-20,000 packs per month to a capacity of 1,00,000 packs. The company currently operates 110 beds and plans to expand to 10 hospitals and 1,000 clinics by FY28.

Raw Material Costs

Inventory turnover ratio decreased by 23% to 8.65 times in FY24, suggesting slower movement of stock or higher inventory levels for retail expansion. Specific raw material cost as a % of revenue is not disclosed.

Manufacturing Efficiency

Clinic utilization is currently at 45% to 55%, providing significant headroom for growth without immediate heavy infrastructure investment. Hospital utilization is also a key driver for the projected FY26 revenue of INR 115-120 Cr.

Logistics & Distribution

The company is shifting its corporate office to a 17th-floor facility in Thane to centralize operations. Distribution involves both franchise clinics (85-90% of total) and online platforms for product sales.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

The company plans to achieve growth by increasing clinic utilization from 45-55% to higher levels, adding 1,000 clinics, and expanding to 10 hospitals by FY28. It is also leveraging digital patient acquisition, insurance empanelment with 35+ providers, and scaling Madhavprash production to 1 lakh packs per month.

Products & Services

Heart disease reversal treatments, Ayurvedic medicines, Madhavprash (wellness product), and diagnostic services through clinics and hospitals.

Brand Portfolio

Madhavbaug, Madhavprash.

New Products/Services

Expansion of the Madhavprash line into retail and online platforms; international healthcare services in Dubai and Malaysia.

Market Expansion

Targeting 5 crore people by 2028. International expansion initiated in Dubai (Foundation stone) and Malaysia (Maxura collaboration).

Strategic Alliances

Collaborations with NBFCs like SaveIn, Aarogya Finance, Credit Fair, and Bajaj Finance for patient financing. Corporate empanelments with JSW Ispat and SBI Pensioner’s Association.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Ayurveda Beyond Wellness' and disease reversal. Madhavbaug is positioning itself as a clinical evidence-based Ayurvedic provider, moving away from just 'wellness' to chronic disease management.

Competitive Landscape

Competitors include traditional Ayurvedic firms and modern cardiac care hospitals. Madhavbaug competes by offering a non-invasive 'reversal' alternative.

Competitive Moat

The moat is built on a network of 1,000+ trained BAMS doctors (Madhavbaug Associates), 63 research publications validating their treatments, and empanelment with 35+ insurance companies which creates high switching costs and trust.

Macro Economic Sensitivity

Sensitivity to healthcare spending and digital advertising inflation. Increased social media costs are cited as a direct threat to profitability.

Consumer Behavior

Increasing preference for non-invasive, natural treatments for lifestyle diseases like diabetes and heart disease.

Geopolitical Risks

International expansion into the Middle East and SE Asia subjects the company to local regulatory healthcare standards and geopolitical stability in those regions.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013, SEBI Listing Regulations, and clinical standards for Ayurvedic practice. The company underwent a Secretarial Audit for FY24.

Taxation Policy Impact

Effective tax rate is not explicitly stated, but Deferred Tax Assets of INR 0.01 Cr are noted on the balance sheet.

Legal Contingencies

The Secretarial Audit Report for FY24 did not highlight specific pending litigation values, though it confirmed compliance with the Companies Act and SEBI regulations.