MedPlus targets 800 net pharmacy additions in FY27 as it scales toward a national network

MedPlus plans to add 800 net stores in FY27, split roughly evenly between company-operated and franchise outlets. The pharmacy retailer had 5,476 stores as of June 30, while private labels contributed 20% of Q1FY27 revenue. Entero is expanding its distribution and MedTech reach alongside the retail growth story.

— Source publishedTue, 25 Aug, 2026, 05:03 IST·First seen Tue, 25 Aug, 2026, 05:08 IST·Source Financial Express · BrandWagon

What happened

MedPlus Health Services · Medplus is expanding its Indian pharmacy network through clustered company and franchise stores, private labels and diagnostics, while

Key facts

  • India pharmacy retail and distribution market: US$24-27 billion (about ₹2.3 lakh crore); ~10% CAGR
  • Medplus: 5,476 stores across 13 states, 1 union territory and about 850 cities as of June 30, 2026
  • Medplus long-term store target: 20,000-40,000
  • Medplus FY27 target: 800 net store additions, expected 50/50 company-operated and franchise
  • Medplus Q1FY27 revenue: ₹1,879.6 crore, up 21.8% YoY; EBITDA margin: 3.5%; net profit: ₹33.2 crore, down 21.7% YoY
  • Entero Q1FY27 revenue: ₹1,940 crore, up 38.2% YoY; EBITDA margin: 5.0%; net profit: ₹52 crore, up 73.3% YoY
  • Entero serves over 72,000 retail pharmacies and 2,300 hospitals
  • Medplus private labels: over 1,550 SKUs; 20% of Q1FY27 revenue

Why this matters

MedPlus’s retail rollout and Entero’s parallel distribution and MedTech expansion create scope for partnerships or acquisitions that deepen regional fulfillment, clinical-category capability and franchise support.

What to watch

  • Quarterly net store additions versus the 800 FY27 target, including company-operated versus franchise mix.
  • Same-store sales growth and sales ramp of newly opened stores relative to mature-store productivity.
  • Private-label revenue share moving above or below the current 20% of Q1FY27 revenue.
  • Gross-margin trajectory, store-level EBITDA, and evidence of rent, staffing, or promotional-cost pressure.
  • Inventory turns, stock-out rates, and distribution-center capacity as Entero's network expands.
  • Franchisee recruitment, closures, conversion rates, and any signs of uneven execution or compliance issues.
  • Competitive response from national pharmacy chains, online pharmacies, quick-commerce platforms, and local independents.
  • Prioritize franchise-led expansion in underpenetrated markets while reserving company-operated stores for strategic urban and high-volume locations.
  • Use Entero's distribution expansion to improve fill rates, reduce stock-outs, and shorten replenishment cycles across the enlarged store base.
  • Increase private-label shelf placement and bundled promotions to lift gross margin and differentiate against independent pharmacies and e-pharmacy competitors.
  • Build cluster-level healthcare ecosystems around new stores, including diagnostics, MedTech devices, chronic-care refills, and home-delivery fulfillment.
  • Tighten franchise governance around inventory standards, pricing, compliance, and customer experience to prevent network quality dilution.