Medplus Health Q2 FY27 Results (NSE: MEDPLUS)
Signal: Steady quarter
The read
The quarter shows a sequential profit recovery but not a full earnings-quality recovery: consolidated revenue rose 21.3% YoY to ₹20,371.08 million, yet PAT grew only 1.0% to ₹560.69 million as gross margin fell 108bps to 25.1% and finance costs rose 27.1%; diagnostics is the main positive inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,037.11 Cr | +21.3% | +8.4% |
| Net profit | ₹56.07 Cr | +1.0% | |
| EPS | ₹4.73 | +2.2% |
P&L walk
Revenue grew 21.3% YoY to ₹20,371.08 million, but gross margin contracted 108bps to 25.1%; PAT was almost flat at ₹560.69 million as higher employee, finance and depreciation costs absorbed much of the revenue growth.
Segments
Diagnostics was the clear momentum driver: revenue rose 23.5% YoY to ₹410.54 million and segment result jumped to ₹49.30 million from ₹2.07 million, while retail remained the earnings base with ₹19,957.68 million revenue and ₹557.56 million segment result.
Key positives
- Consolidated revenue rose 21.3% YoY to ₹20,371.08 million and 8.4% sequentially, maintaining the elevated growth seen in the recent trajectory.
- Diagnostic services revenue increased 23.5% YoY to ₹410.54 million and segment result expanded to ₹49.30 million from ₹2.07 million.
- Employee benefits expense grew 17.2% YoY to ₹2,500.35 million, below revenue growth of 21.3%, supporting operating-cost absorption.
- Standalone PAT grew 68.3% YoY to ₹263.01 million, materially outperforming consolidated PAT growth of 1.0%.
Key concerns
- Gross margin contracted 108bps YoY to approximately 25.1%, limiting conversion of 21.3% revenue growth into profit.
- Consolidated PAT increased only 1.0% YoY to ₹560.69 million despite revenue growth of 21.3%, indicating substantial cost and margin absorption.
- Finance costs rose 27.1% YoY to ₹366.18 million, faster than revenue growth.
- Operating cash flow fell 48.5% YoY in H1FY27 to ₹1,622.08 million while inventory increased 21.3% YoY to ₹15,210.85 million.
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