Medplus Health Services Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Medplus Health Services Ltd trades at ₹660, in a downtrend and 7 weeks into that stage. That is −16.2% against its own 200-day average. It sits at 0% of a 52-week range of ₹660 to ₹951. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (19 weeks and counting).

Today the stock is in a downtrend — week 7 of stage 4, confirmed. At ₹660 it trades −16.2% versus its 200-day average and sits at 0% of its 52-week range (₹660–₹951).

Against the market, two honest reads. Cumulative: over the last 4.7 years the stock moved −39% while the NIFTY 500 moved +54% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (19 weeks and counting; last ahead the week of 2026-06-04) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Medplus Health Services Ltd's story is not scored yet against the markers our research file set on 31 May 2026. Where it sits in its own cycle: EARLY_EXPANSION. Still open: 10-20 minute medicine delivery in urban India threatens convenience moat of physical pharmacy; highest risk in Tier-1 cities where MedPlus cluster model is densest.

Our read, 31 May 2026. Pharmacy retailer at peak earnings momentum — SSSG hit a 13-quarter high of 17.8% in Q4 FY26, franchise model now profitable from day one, and private label non-pharma at 23-25% gross margins is widening the earnings funnel while PE sits at the 26th percentile of own history.

From the numbers. PE compressed from 220.6x peak (Mar 2023) to 50.7x current — 77% contraction while EPS accelerated from Rs 1.2 (Jun 2024 quarter) to Rs 5.33 (Mar 2026 quarter), a purely EARNINGS_DRIVEN compression (C022, C023). PE sits…

From the price. Price stage 4, week 7 — below its 200-day line, relative strength falling.

From the research. Pharmacy retailer at peak earnings momentum — SSSG hit a 13-quarter high of 17.8% in Q4 FY26, franchise model now profitable from day one, and private label non-pharma at 23-25% gross margins is widening the earnings…

🚨 Where they disagree. PE compressed from 220.6x peak (Mar 2023) to 50.7x current — 77% contraction while EPS accelerated from Rs 1.2 (Jun 2024 quarter) to Rs 5.33 (Mar 2026 quarter), a purely EARNINGS_DRIVEN compression (C022, C023). PE sits at 26th percentile of own history vs 71.8x median. EXPANSION_STARTED segment with QoQ IMPROVING momentum. DII holdings rose from 26.03% (Jun 2025) to 26.58% (Dec 2025) — DII_BUYING confirmed (C024).

What is proven. Pharmacy retailer at peak earnings momentum — SSSG hit a 13-quarter high of 17.8% in Q4 FY26, franchise model now profitable from day one, and private label non-pharma at 23-25% gross margins is widening the earnings funnel while PE sits at the 26th percentile of own history.

What is not proven yet. 10-20 minute medicine delivery in urban India threatens convenience moat of physical pharmacy; highest risk in Tier-1 cities where MedPlus cluster model is densest.

The test written in advance. Quick-commerce pharmacy disruption — Quick-commerce pharmacy disruption SSSG deceleration from guided 9-10% level; online GMV disclosure from management by the next result.

The test written in advance. Management guidance credibility — pattern of serial reversals — Management guidance credibility — pattern of serial reversals Q1 FY27 SSSG print vs guided 9-10%; franchisee store count disclosure by the next result.

The test written in advance. First-year store drag on consolidated margins — First-year store drag on consolidated margins Consolidated EBITDA margin in Q1 FY27 vs guided 5.7-5.8% stabilization by the next result.

Lever 15 · Market-share gains — BUILDING. SSSG for stores >12 months hit 17.8% in Q4 FY26 (13-quarter high) after incentive restructure; management guides 9-10% as sustainable annualized run-rate. What proves it keeps working: SSSG Inflection — 13-Quarter Peak. It stops working if SSSG deceleration from guided 9-10% level; online GMV disclosure from management.

Lever 5 · Regulatory approval — BUILDING. Non-pharma private label at 23-25% gross margin vs branded 9-10%; management redirected growth engine from pharma to non-pharma; 600+ stores receiving smart racks in FY27. What proves it keeps working: Private Label Non-Pharma Mix Expansion. It stops working if SSSG deceleration from guided 9-10% level; online GMV disclosure from management.

Lever 8 · Demerger or value unlock — BUILDING. Franchise stores profitable from day one at 9.5-10% store-level EBITDA; Rs 10 lakh capex per store with franchisee absorbing day-one inventory. What proves it keeps working: Franchise Model Profitability Inflection. It stops working if SSSG deceleration from guided 9-10% level; online GMV disclosure from management.

Lever 2 · Value-added mix — BUILDING. Diagnostic FY26 revenue Rs 1,309.9 million at 15.3% EBITDA margin; Q4 FY26 EBITDA up from Rs 34.3 million prior year to Rs 53.1 million; GLP-1 infrastructure in place but contribution not yet tracked. What proves it keeps working: Diagnostic Segment Margin Ramp. It stops working if SSSG deceleration from guided 9-10% level; online GMV disclosure from management.

Sources: our stock research file (31 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Medplus Health Services Ltd reported ₹1,880 Cr of revenue in the Jun 26 quarter, +21.8% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 14.8% a year. The last full year, FY26, came in at ₹6,892 Cr. The last four reported quarters add to ₹7,229 Cr.

Why this happened. The SSSG turnaround is the pivot of the thesis. SSSG was negative or near-zero through FY25 and H1 FY26 due to misaligned incentive plans and supply chain fill-rate gaps. Management's two fixes — incentive restructure and 10 new warehouses — delivered 10%+ SSSG in Q3, then 17.8% in Q4. Management characterized Q4 as anomalous (attributed to full assortment availability and FMCG category uptake, not pricing). The guided rate of 9-10% annualized is the sustainable baseline. Watch signal: pharmacy membership renewal rate declined from 23% in Q3 to 21% in Q4 (C040, C041).

FY26 revenue came in at ₹6,892 Cr (+12.3% on the year), capping 10 years at 14.8% compound. The latest quarter (Jun 26) printed ₹1,880 Cr, +21.8% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +16.8% growth against the decade's 14.8% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +16.8% over the last 4 quarters against +11.4%/yr over the last 8 — accelerating; TTM profit +18.5% vs +65.5%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Medplus Health Services Ltd's operating margin is 7.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 12 fiscal years the operating margin has ranged 2.1% to 9.0%. The current quarter sits inside that band.

Why this happened. Diagnostics was a loss-making drag through FY24. By FY26 it reached 15.3% EBITDA margin on Rs 1,309.9 million revenue. Q4 FY26 EBITDA Rs 53.1 million vs Rs 34.3 million in Q4 FY25 — 55% YoY improvement. Active pharmacy plans approximately 2 lakhs at quarter-end March 2026. The model has cold-chain infrastructure suited for GLP-1 obesity drugs, which management is tracking but not disclosing revenue for yet. Renewal rate decline from 23% (Q3) to 21% (Q4) is an early watch signal (C011, C012, C045).

The latest quarter's operating margin is 7.0%, −1.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 2.1%–9.0%, and FY26's 9.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −1.4 pp year on year while gross margin went −1.6 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Medplus Health Services Ltd earned ₹33.0 Cr of net profit in the Jun 26 quarter, −21.4% year on year. Full-year FY26 profit was ₹220 Cr. The 10-year compound rate is 37.7%. That is 1.8% of the quarter's revenue. The same quarter a year earlier earned ₹42.0 Cr.

Jun 26 profit was ₹33.0 Cr, −21.4% year on year. On the full year, FY26 printed ₹220 Cr (+46.7%), and the 10-year compound rate is 37.7%.

🚨 Why profit moved: revenue contributed +21.8% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +18.5% vs revenue +16.8%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 271% of Medplus Health Services Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹496 Cr of operating cash against ₹220 Cr of profit. After ₹598 Cr of capital spending, ₹−102 Cr was left as free cash.

FY26: operating cash of ₹496 Cr against reported profit of ₹220 Cr, leaving free cash of ₹−102 Cr after ₹598 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 271% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 271%: the cash cycle tightened 12 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Medplus Health Services Ltd's cash conversion cycle runs 79 days in FY26, down from 91 days in FY21. Capital spending ran ₹1,221 Cr over the last 3 years. At FY26 sales of ₹6,892 Cr each day of that cycle holds about ₹18.9 Cr, so roughly ₹1,492 Cr sits inside the business at any moment.

FY26: debtors at 1 days, inventory at 99 days — roughly 3.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 79 days, tighter than FY21's 91.

The full loop: cash goes out to suppliers and production on day 0; stock waits 99 days to sell; customers pay about 1 days after that; and suppliers themselves are paid at 22 days — netting out to the 79-day cycle.

In money terms: at FY26 sales of ₹6,892 Cr, each day of the cycle holds about ₹18.9 Cr — so the 79-day loop keeps roughly ₹1,492 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,221 Cr over the last 3 fiscal years against ₹757 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹32.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Medplus Health Services Ltd earns a ROCE of 13% in FY26. That is up from a trough of 5% in FY23. Return on invested capital clears the cost of that capital by −3.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 3.2% net margin on 1.75× asset turns.

FY26 ROCE is 13%, recovered from a FY23 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 3.2% net margin × 1.75× asset turns × 1.99× balance-sheet leverage ≈ 11.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 9.0% − 12.0% = a −3.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Medplus Health Services Ltd carries total debt of ₹1,424 Cr against shareholder equity of ₹1,975 Cr as of Jun 26, a debt-to-equity of 0.72. On the annual view that ratio went from 0.58 in FY22 to 0.72 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Jun 26: total debt of ₹1,424 Cr against shareholder equity of ₹1,975 Cr — a debt-to-equity of 0.72. On the annual view, debt-to-equity went from 0.58 (FY22) to 0.72 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 7.8 points of Medplus Health Services Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 29.9% of the company. Foreign institutions moved −0.5 points over the same window, to 14.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +7.8 points over 8 quarters to 29.9%; Foreign institutions: −0.5 points over 8 quarters to 14.4%; Promoters: −0.2 points over 8 quarters to 40.2%.

Why the register moved: domestic institutions drove it (+7.8 points), absorbed on the other side by foreign institutions (−0.5 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Medplus Health Services Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

Why this happened. Management deliberately bifurcated the private label strategy. Private label pharma GMV share was dialled back after organic adoption concerns. Non-pharma private label carries 23-25% gross margins vs branded non-pharma at 9-10%. FY26 total private label stabilized at 22% of revenue (pharma 11.4%, non-pharma 10.6%). FY27 guidance is 20-30 bps quarterly growth resumption in non-pharma. Management walked back the specific percentage guidance in the May 2026 call but directional commitment and store-level execution data remain intact (C009, C042, C043).

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Medplus Health Services Ltd trades at 37.7× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 72.8×, measured across 4.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Why this happened. The franchise model is a capital-efficiency strategy. Company-owned stores incur Rs 10-11 lakh total investment (fit-out plus inventory), with first-year store inventory at 112 days vs 36 days for mature stores. Franchise stores: company spends Rs 10 lakh for fit-out, franchisee buys day-one inventory outright. Gross margin split is 9.5-10% to MedPlus vs 14-14.5% to franchisee. FY26 added approximately 310 franchise stores. FY27 target: 800 net stores (both models combined). New model franchise exits in FY26 were very few per management (C003, C004, C044).

Today's P/E of 37.7× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 72.8× measured over 4.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +45.7% against a −21.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the −6.6%/yr price move, ~+60.8%/yr came from earnings growth and ~−67.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Medplus Health Services Ltd was paying for profit growth of about 26.8% a year. Profit itself has compounded 37.7% a year over the past 10 years. Today the market pays 37.7× P/E, the 13th percentile of its own 5-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Medplus Health Services Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +123.9% at its peak to +18.5% but is still expanding, ROCE holding at 12.9%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

46.0/100 — rank 2 of 4 in Pharmacy Distribution · 97% evidence confidence

Medplus Health Services Ltd scores 46.0 out of 100 against the 4 companies it is compared with in Pharmacy Distribution, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 20.5 + 9.5 + 16 + 0 = 46. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Medplus Health Services Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 Private Label Trajectory Reversed · 22 July 2026. In May 2026, management said its incentive restructuring was working and that private label would return to the promised quarterly growth trajectory. In July 2026, management instead said employees had over-pushed private label, customers may have been put off, and the company was pulling back to better serve branded demand; private label mix had declined from 22% in Q4 FY26 to 20% in Q1 FY27. The latest explanation is not reconciled with the prior assertion that the restructuring was working.

Lower Confidence in FY27 Margin Outlook · 22 July 2026. In May 2026, management indicated an objective to stabilize operating EBITDA and deliver approximately 5.7% to 5.8% over the next year. In July 2026, after Q1 FY27 consolidated operating EBITDA was 3.5%, management declined to say whether full-year margins would return to FY26 levels and deferred its projection until Q2. Although the annual plan was not formally withdrawn, this represents a meaningful reduction in confidence in the previously stated profitability trajectory.

Backward Integration and New-Facility Capex Put on Hold · 22 July 2026. In May 2026, management presented backward integration and company-owned manufacturing as active capital-allocation priorities and said it would continue evaluating opportunities to add value and improve supply-chain reliability. In July 2026, management said the Board-approved capex proposals were on hold, all capex spending was on hold for now, and the wellness facility was unlikely to proceed. Management attributed the reversal primarily to market and shareholder feedback rather than a stated change in project economics or operating priorities, creating a material strategic shift that warrants clarification.

Private Label Portfolio Guidance · 21 May 2026. During the Nov 2025 conference call, management established a forward-looking plan to grow their private label pharma portfolio by approximately one percent every quarter on an MRP basis. In contrast, during the May 2026 call, management flatly stated that they do not provide specific growth guidance for the private label portfolio and denied ever giving that type of projection.\nPrior Call (Nov 2025): But after that, we should start growing at around 1% every quarter on an MRP basis. So, that's the basic plan for us.\nLatest Call (May 2026): We do not give that kind of guidance.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions