1QFY27: Weak quarter as EBITDA margin drops Quick Note

Research evidence excerpt

1QFY27: Weak quarter as EBITDA margin drops Quick Note

Global Markets Research

Medplus Health Services MEDP.NS MEDPLUS IN 21 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1QFY27: Weak quarter as EBITDA margin drops Remains Buy

Target price INR 1,190 RemainsQuick Note

Closing price INR 794 21 July 20261QFY27: A weak quarter as pharma private label slows and overhead expenses rise

MedPlus reported a weak 1QFY27 compared to our assumptions. Sales increased at a

heathy pace of 22% y-y, 1% ahead of our estimate. Gross profit growth at 14% y-y was

the slowest in four years, with gross margin down 163bp y-y. Most of the decline was due Research Analysts

to lower contribution from the pharma private label, which recorded only 2% growth y-y. India Pharmaceuticals

The step-up in franchisee sales also contributed to the y-y gross margin decline to some Saion Mukherjee - NFASL

extent. Overhead expenses significantly increased, with pharmacy salaries up 30% y-y saion.mukherjee@nomura.com

(14% y-y rise on a per-pharmacy basis) and non-pharmacy overhead rising 34% y-y, +91 22 403 74184

which could be related to store network expansions in the recent past. Operating EBITDA Kushal Chovatia - NFASL

thus declined 11% y-y and came in 29% below our forecast. Net profit declined 22% y-y kushal.chovatia@nomura.com

and was 34% lower than our estimate. +91 22 403 74013

• 1QFY27 revenue grew 22% y-y and 1% q-q, in line with our estimate. Private label

pharma growth was muted at 2% y-y while the branded pharma/branded non-

pharma/private label pharma segments grew 20%/17%/30% y-y. Own pharmacy

(Company-owned, company-operated – COCO) growth was 18% y-y and franchisee

sales growth was 164%. Franchisee sales at 5.4% rose significantly from 2.5% in

1QFY26.