💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 grew 35% YoY to INR 91.2 Cr. The Product segment contributed 76% of revenue in H1 FY26 (up from 71% in H1 FY25), while the Services segment contributed 24% (down from 29% in H1 FY25). Q2 FY26 revenue grew 20% YoY to INR 44.7 Cr.

Geographic Revenue Split

Not explicitly disclosed by region, but the company is positioned to expand operations on a national scale across India to leverage healthcare infrastructure development.

Profitability Margins

PAT for Q2 FY26 was INR 3.6 Cr with an 8% margin. For H1 FY26, PAT was INR 6.7 Cr with a 7.4% margin. Net profit before tax for FY25 was INR 14.42 Cr compared to INR 12.23 Cr in FY24, representing a 17.8% increase.

EBITDA Margin

Q2 FY26 EBITDA margin was 15.5% (INR 6.9 Cr), a decrease from 19.5% in Q2 FY25. H1 FY26 EBITDA margin was 14.7% (INR 13.4 Cr), down from 17.9% in H1 FY25. The margin compression is due to front-loaded investments in systems, infrastructure, and personnel to support future scaling.

Capital Expenditure

Not disclosed as a specific INR figure, but management confirmed significant ongoing investments in infrastructure, technology systems, and human capital expected to yield margin improvements starting in FY27.

⚙️ Operational Drivers

Raw Materials

Medical devices and consumables (renewables) for point-of-care machines, including products from exclusive global brands like 3M and Heine. Specific cost percentages per material are not disclosed.

Import Sources

Global sourcing for exclusive brands like 3M and Heine; specific countries are not listed but imply international procurement for specialized medical technology.

Key Suppliers

Key global partners include 3M and Heine for medical device distribution.

Capacity Expansion

The company conducted 16,200 B2B health camps in H1 FY26. Expansion is focused on increasing the volume of these camps and scaling the Patient Service Programs (PSP) across new therapeutic areas.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the product segment (which includes device sales) operates at lower EBITDA margins of 10-12% compared to the service segment's 20-22%.

Manufacturing Efficiency

Operational execution is measured by the volume of B2B health camps (16,200 in H1 FY26) and the utilization of proprietary digital health applications for patient management.

Logistics & Distribution

Distribution is handled through partnerships, including the government’s e-Grameen portal and an owned e-commerce platform, QMSMEDS.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be driven by increasing the stake in Saarathi Healthcare from 51% to 76%, which will consolidate more service-linked revenue. The company aims for the service sector to reach approximately INR 50 Cr by the end of the current fiscal year. Strategy includes scaling B2B health camps, expanding Patient Support Programs (PSPs), and leveraging the Q-Devices brand endorsed by Kapil Dev.

Products & Services

Q-Devices (medical devices), Patient Support Programs (PSP), B2B health camps, point-of-care machines, and e-commerce sales via QMSMEDS.

Brand Portfolio

Q-Devices, QMSMEDS, Saarathi Healthcare.

New Products/Services

Expansion into new therapeutic areas for healthcare camps and scaling the proprietary digital health application for patient management.

Market Expansion

National scale expansion in India, targeting the influx of funds into healthcare infrastructure and delivery systems.

Market Share & Ranking

Not disclosed, but positioned as a leading distributor and marketer of medical products with 30+ years of experience.

Strategic Alliances

Exclusive distribution partnerships with 3M and Heine; partnership with the government's e-Grameen portal.

🌍 External Factors

Industry Trends

The industry is shifting toward high-class medical technology and screening services (Point of Care). QMS is positioning itself as an innovator in the integrated healthcare ecosystem to address unmet needs in non-communicable diseases.

Competitive Landscape

Competes with other medical device distributors and healthcare service providers; differentiates through integrated B2B camps and PSPs.

Competitive Moat

Durable advantages include 30+ years of industry experience, exclusive global brand partnerships (3M, Heine), and a large network of 130+ institutional clients. These are sustainable due to high entry barriers in medical device distribution and established trust with 50+ pharma companies.

Macro Economic Sensitivity

Highly sensitive to healthcare infrastructure spending and government funding into delivery systems.

Consumer Behavior

Increasing demand for early intervention and screening for non-communicable diseases is driving growth in the Point of Care division.

Geopolitical Risks

Changes in government policy due to socio-economic or socio-political issues are cited as a constant risk factor for the healthcare industry.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Operations are subject to government healthcare policies and medical device standards.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

Tax for FY25 was INR 4.00 Cr (including deferred tax) on a profit before tax of INR 14.42 Cr, implying an effective tax rate of approximately 27.7%.

Legal Contingencies

The independent auditor's report for FY25 indicates an adequate internal financial controls system and does not highlight major pending litigation values.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing of margin recovery; while management expects improvements in FY27, current investments have reduced EBITDA margins by approximately 400 basis points YoY in Q2 FY26.

Geographic Concentration Risk

Currently focused on the Indian market with plans for national expansion.

Third Party Dependencies

High dependency on pharmaceutical companies' marketing budgets for the service segment and global brands (3M, Heine) for the product segment.

Technology Obsolescence Risk

Mitigated by proprietary digital health app development and maintaining partnerships with leading global medical technology innovators.

Credit & Counterparty Risk

Receivables are primarily from 130+ institutional clients and 50+ pharma companies, which generally represent lower credit risk but are subject to corporate payment cycles.