MEDPLUS - Medplus Health

📊 NSE: MEDPLUS 🏢 Trading 📅 Last Updated: 12/14/2025 9:46

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 9.17% in FY 2025 to INR 61,846.69 million. By segment: Retail grew 8.6% to INR 60,268.86 million; Diagnostic services grew 44.3% to INR 1,081.07 million; and Other segments grew 15.4% to INR 10.60 million.

Geographic Revenue Split

The company operates 4,930 stores across 13 states and 1 union territory. In Q2 FY 2026, 68 net store additions were made beyond Tier-One cities, aligning with the strategy to deepen retail healthcare access in underserved markets.

Profitability Margins

Consolidated gross margin increased from 21.92% in FY 2024 to 24.37% in FY 2025, reaching a new high of 26.1% in Q2 FY 2026. This 240 bps YoY improvement is driven by the increasing share of high-margin private label products.

EBITDA Margin

Consolidated operating EBITDA for Q2 FY 2026 stood at 5.3% (INR 887 million). Mature outlets (older than 12 months) maintained a solid 11.8% store-level EBITDA margin, demonstrating strong unit economics upon store maturity.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company added 145 gross stores in Q2 FY 2026 and maintains a property bank of 400+ locations for future expansion.

⚙️ Operational Drivers

Raw Materials

Branded pharmaceutical products represent approximately 75% of sales. Private label pharmaceuticals and FMCG goods constitute 21.5% of total revenue as of Q2 FY 2026.

Capacity Expansion

Current network includes 4,930 stores covering 2.6 million+ square feet as of Q2 FY 2026. The company added 398 stores in FY 2025 and 117 net stores in Q2 FY 2026.

Raw Material Costs

Cost of goods sold was INR 46,406.61 million in FY 2025, representing 75.03% of total income, down from 77.52% in FY 2024 due to better supply chain efficiency.

Manufacturing Efficiency

The company utilizes a backward-integrated value chain and tech-driven inventory management to maintain cost efficiency across 48k+ SKUs in warehouses.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

6.50%

Growth Strategy

Growth will be driven by a cluster-based expansion strategy focusing on deeper penetration in 13 states, a pilot franchisee model, and increasing private label revenue share to 20-25%. The company is also expanding its diagnostics segment, which grew 44.3% in FY 2025.

Products & Services

Branded and private-label medicines, wellness products, FMCG goods, pathology and radiology diagnostic services, and insurance broking.

Brand Portfolio

MedPlus, MedPlus Mart, MedPlus Lens, MedPlus Labs.

New Products/Services

Private label pharma sales reached 12.1% of revenue in Q2 FY 2026, while non-pharma private labels contributed 9.6%.

Market Expansion

Expansion into Tier II and III cities to capitalize on rising health awareness and underserved retail healthcare markets.

Market Share & Ranking

2nd largest pharmacy retailer in India by revenue.

🌍 External Factors

Industry Trends

The Indian retail pharmacy industry is growing rapidly and moving toward consolidation and digital transformation. MedPlus is positioned as a pioneer in the organized retail format with a 19-year presence.

Competitive Landscape

Intense competition from both traditional unorganized retail pharmacies and well-funded online pharmacy platforms.

Competitive Moat

Durable advantages include a backward-integrated supply chain, a massive network of 4,900+ stores, and high customer stickiness (70% retention) through loyalty programs. These are sustainable due to the high capital requirement for competitors to build similar infrastructure.

Macro Economic Sensitivity

Sensitive to India's growing chronic disease burden and increasing internet penetration which drives ePharmacy (omnichannel) demand.

Consumer Behavior

Shift toward impulsive buying in the non-pharma/FMCG segment, where there is no doctor-prescribed dosage limit, driving higher basket values.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by the Drug Pricing Control Order (DPCO) and compliance with various pharmaceutical retail and diagnostic licensing laws.

Legal Contingencies

No material changes, commitments, or insolvency proceedings were initiated during the financial year ended March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Promoter share pledging is identified as a financial risk that affects investor confidence. Pharmacist attrition is an HR risk that could impact service quality.