MedPlus revenue rises 22% in Q1, but profit falls as margins contract
MedPlus Health Services reported Q1 FY27 revenue of ₹1,879.6 crore, up 21.8% year on year, while net profit fell 21.8% to ₹33 crore. The pharmacy retailer added 146 stores, mostly franchisees, and outlined about ₹155 crore of planned Hyderabad investments.
What happened
MedPlus Health Services · MedPlus Q1 FY27 revenue rose 22% to ₹1,879.6 crore but profit fell 22% to ₹33 crore as margins contracted. It added 146 stores,
Key facts
- Q1 FY27 net profit ₹33 crore, down 21.8% YoY from ₹42 crore
- Revenue ₹1,879.6 crore, up 21.8% YoY from ₹1,542.6 crore
- EBITDA ₹133.2 crore, up 1.9% YoY from ₹130.7 crore
- EBITDA margin 7.1%, down from 8.5%
- 146 new stores added, including 131 franchisee stores
- Gross margin 24.5%, down 160 bps from 26.1%
- Operating EBITDA ₹65.1 crore, down from ₹72.8 crore
- Operating EBITDA margin 3.5%, down from 4.7%
- Hyderabad food park capex around ₹40 crore
- Concierge Health & Wellness project investment around ₹115 crore, including ₹90 crore capex
Why this matters
MedPlus’s 146-store addition and planned ₹155 crore Hyderabad investment signal continued market-consolidation ambitions, though margin pressure may constrain the value of further expansion.
What to watch
- Same-store sales growth versus contribution from the 146 new stores.
- EBITDA margin trend over the next two quarters, especially whether it stabilizes above or below 7.1%.
- Net profit and operating cash flow conversion relative to revenue growth.
- Franchise-store mix, franchisee ramp-up productivity, and any rise in closures or cannibalization.
- Inventory days, receivable days, and working-capital funding needs during the Hyderabad buildout.
- Private-label mix, gross-margin movement, and competitive pricing actions from Apollo Pharmacy, Tata 1mg, Netmeds, and local chains.
- Capex cadence and timing of Hyderabad facilities becoming operational.
- Accelerate franchise-led expansion to preserve revenue growth while limiting company-funded store capex.
- Deploy the planned Hyderabad investment toward warehouse, omni-channel fulfillment, and regional store density rather than only new storefronts.
- Push higher-margin private-label, wellness, diagnostics, and chronic-care categories to offset prescription and FMCG margin pressure.
- Tighten promotional intensity, procurement terms, and store-level labor productivity to restore EBITDA margin.
- Provide investors with clearer disclosure on same-store sales, mature-versus-new-store margins, franchise economics, and cash conversion.