Medplus Health Services Ltd (Pharmacy Distribution) — fundamental analysis, earnings data, and key metrics. PE: 50.6. ROE: 8.8%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Private Label Revenue %: 22.2%
Impact: 50 bps increase in PL adds 10-20 bps to gross margin
“I mentioned the PL pharma would be close to 74% to 78% versus non-pharma would be in the range of up to 34%.”
What: SSSG: 10.5%
“We are clearly seeing the improvement in the branded pharma uptick as well as the uptick in the private label non-pharma.”
What: Warehouse Operationalization: 60-70%
“At least 60% to 70% of the new warehouses have been operationalized... we do not expect any significant ramp-up on those expenses.”
What: New States: Chhattisgarh, Kerala
“We had started Chhattisgarh, we have started Kerala. But yes, the main new stores where you can see now is part of the densification.”
What: Non-Pharma SKUs: 1,300-plus
Impact: 48% growth in non-branded non-pharma
“So there's a large assortment of, I would say, 1,300-plus SKUs, which we offer to the customers, great quality and great affordable price.”
What: SSSG growth of 10.5%
“One, we started with a bit lower base of the previous quarter in the last year. And two, the impacts of the changes in the incentive structure.”
Earnings deceleration risks from management commentary
Trigger: Implementation of new national labor codes and high competition for delivery/store staff.
Impact: PAT impact: ₹7.06 Cr one-off
Management view: Implemented a 3-year retention bonus scheme (₹18k to ₹1L) which has reduced attrition by 15% in pilot cities.
Monitor: labor
Trigger: Notification effective Sept 22nd led to higher tax paid on existing inventory than can be offset against new sales.
Impact: PAT impact: 1 month ITC blockage
Management view: Negotiated one-time extra credit periods with suppliers to offset working capital impact.
Monitor: regulatory
Trigger: Unlike branded products, private label inventory cannot be returned to manufacturers if unsold.
Impact: PAT impact: 0.9% to 1% provision
Management view: Providing 0.9% to 1% of private label sales as a provision for deterioration.
Monitor: commodity
Key quotes from recent conference calls
“We continue with the outlook for adding 600 new store additions in fiscal '26. [Previous Store Additions guidance]”
“What we have tweaked is we have now included a component of total sales at the store level, which means the branded as well as the private label sales. [Initiative: Incentive Structure Rejig]”
“we had upwards of 45% attrition in this section of employees. And after we implemented this... we drastically saw a reduction of around 15%. [Risk (labor): MEDIUM]”
“there is an accumulation of input credit by an average of 7% for the pharma sector... blockage of input tax credit by maybe a month. [Risk (regulatory): LOW]”
Headline numbers from the latest earnings call
Revenue
₹18,061 million
Why: Growth was driven by a 15.6% year-on-year increase in pharmacy operations and improved store-level performance.
Revenue growth accelerated significantly compared to the 6.3% net basis growth reported in Q2.
EBITDA
₹968 million
Why: EBITDA was impacted by a nonrecurring charge of ₹70.59 million related to the implementation of the new Labour Code.
Adjusting for the one-off labor code charge, the underlying operating margin showed resilience despite expansion costs.
Other Highlights
• SSSG reached 10.5% in Q3, a significant turnaround from 2.2% in the previous quarter.
• Net addition of 182 stores during the quarter, bringing the total network to 5,112 stores.
• Private label sales reached 22.2% of total revenue, with pharma at 11.6% and FMCG at 10.6%.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Same Store Sales Growth
10.5%
Why: Driven by incentive structure tweaks and a lower base from the previous year.
Total Store Network
5,112
Why: Aggressive expansion strategy to reach 600 net additions for FY26.
Private Label % of Revenue
22.2%
Why: Increased focus on non-pharma private label and better store display.
Pharmacy Operating EBITDA Margin
5.2%
Why: Improved store-level efficiencies offset by expansion costs.
Net Working Capital Days
53 days
Why: Mindful inventory management and shift toward franchisee model which carries no inventory on books.
Diagnostics Segment Revenue
₹326.7 million
Why: Steady growth in subscription plans despite seasonal variations.
Mature Store EBITDA Margin (>24m)
12.6%
Why: Higher operating leverage and private label penetration in older stores.
Attrition Rate Reduction
15%
Why: Success of the new employee retention bonus scheme.
Forward-looking targets from management for FY26
Gross margins expected to remain stable.
Guidance Changes
Store Additions: 600 stores → 600 stores
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Medplus Health Services Ltd's latest quarterly results (Dec 2025) show
Medplus Health Services Ltd's current PE ratio is 50.6x.
Medplus Health Services Ltd's price-to-book ratio is 5.7x.
Medplus Health Services Ltd's fundamental strength based on key financial ratios
Medplus Health Services Ltd has a debt-to-equity ratio of N/A.
Medplus Health Services Ltd's return ratios over recent years
Medplus Health Services Ltd's operating cash flow is positive (FY2025).
Medplus Health Services Ltd currently does not pay a significant dividend (yield 0.00%).
Medplus Health Services Ltd's shareholding pattern (Mar 2026)
Medplus Health Services Ltd's promoter holding has decreased recently.
Medplus Health Services Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Medplus Health Services Ltd has 6 key growth catalysts identified from recent earnings analysis
Medplus Health Services Ltd has 3 key risks worth monitoring
In Q3 FY26, Medplus Health Services Ltd's management highlighted
Medplus Health Services Ltd's management has provided the following forward guidance for FY26
Medplus Health Services Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Medplus Health Services Ltd may be worth studying
Medplus Health Services Ltd investment thesis summary:
Medplus Health Services Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
