Medplus Health Q4 FY26 Results (NSE: MEDPLUS)
Signal: Growth reaccelerated
The read
Q4FY26 shows revenue acceleration to 23.4% YoY, fastest in 4 quarters, driven by retail store expansion and diagnostics turnaround; OPM held at 9% for the 4th consecutive quarter (neutral YoY) after 5 quarters of expansion; full-year PAT surged 46.2% on 12.3% revenue growth, demonstrating annual operating leverage; EPS growth slightly trails PAT due to ESOP dilution; diagnostics segment turned profitable for the first time in recent quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,864.38 Cr | 23.4% | 3.2% |
| EBIT | ₹71.92 Cr | 32.0% | |
| Net profit | ₹63.97 Cr | 24.2% | |
| EPS | ₹5.33 | 23.4% | |
| EBIT margin | 3.9% |
P&L walk
Revenue growth accelerated to 23.4% YoY (vs 8.3% in Q3FY26) driven by retail segment; OPM held at 9% for the 4th consecutive quarter, neutral YoY after 5 quarters of expansion; cost ratios stable; PAT ₹639.73 million (+24.2% YoY) supported by other income (+30.4% YoY); full-year PAT ₹2,196.06 million (+46.2% YoY) on 12.3% revenue growth — operating leverage evident annually.
Segments
Retail segment (98.1% of revenue) drives growth with ₹705.23 million segment result (+27.9% YoY); Diagnostic services turned a profit of ₹9.64 million (vs loss ₹-9.04 million in Q4FY25) — inflection point after prior losses.
Key positives
- Q4FY26 revenue ₹18,643.85 million (+23.4% YoY) — fastest growth in 4 quarters, accelerating from 15.7% in Q3FY26 and 1.3% in Q4FY25.
- Diagnostic services segment turned profitable at ₹9.64 million (vs loss ₹-9.04 million in Q4FY25), a key inflection after FY25 segment loss of ₹-109.76 million.
- Full-year PAT ₹2,196.06 million (+46.2% YoY) on revenue growth of 12.3% — operating leverage evident in annual numbers.
- Operating cash flow of ₹4,955.81 million in FY26 (2.26x PAT) remains strong, funding store expansion organically.
- Cost ratios stable: raw material + stock-in-trade at 73.7% of revenue (-30bps YoY), employee costs at 12.8% (-10bps YoY).
Key concerns
- OPM held at 9% for 4th consecutive quarter — no sequential margin expansion despite 23.4% revenue growth; finance costs absorbed gains.
- EPS growth (23.4%) trails PAT growth (24.2%) due to ESOP dilution — small but persistent.
- Inventory days high at ~100 days (₹13,816.94 million inventory vs revenue), though typical for pharmacy retail.
- Net debt (lease liabilities) increasing — lease liabilities rose ₹3,045.81 million YoY, partially funded by higher cash balance.
Research and educational content only. Not investment advice.