1QFY27: Key takeaways from the earnings call: Quick Note

Research evidence excerpt

1QFY27: Key takeaways from the earnings call: Quick Note

Global Markets Research

Medplus Health Services MEDP.NS MEDPLUS IN 22 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1QFY27: Key takeaways from the earnings call Remains Buy

Target price INR 1,190 RemainsQuick Note

Closing priceMedPlus reported a weak 1QFY27 compared to our assumptions (link). Key takeaways 22 July 2026 INR 692

from the earnings call held today follow:

• The capex plan that was approved by the Board yesterday for investment in the food Research Analysts

park and oil extraction unit (INR400mn) and concierge and health wellness service

(INR900mn) has now been put on hold due to negative reaction from the investors. India Pharmaceuticals

Saion Mukherjee - NFASL

• In Q1FY27, the companymade 146 net store additions, out of which 131 were saion.mukherjee@nomura.com

franchisee stores. In addition, 24 of MedPlus’ company-owned and company-operated +91 22 403 74184

(COCO) stores are in the process of being converted into franchisee stores. These Kushal Chovatia - NFASL

stores are being given to some of MedPlus’ senior staff, to facilitate them to be kushal.chovatia@nomura.com

entrepreneurs. +91 22 403 74013

• Management has maintained its outlook for adding 800 new stores in FY27. The

expansion will be broadly even between COCO and franchisee stores. Key states

where most of the stores will be added are Maharashtra, Chhattisgarh, Madhya

Pradesh, and Kerala.

• The q-q gross margin decline of ~200bp was attributed to lower private label sales

(~100bp impact), year-end supplier discounts that were not present in Q1 (~40bp

impact) and lower inventory provisions of INR110mn compared to INR50mn in

Q4FY26 (~70bp impact). The annual inventory provisioning charge is roughly 0.8% to