MEDPLUS Q4 FY26 Results Analysis: PAT Jumps 24.6%, Diagnostics Turnaround Lifts Performance

MEDPLUS's Q4 FY26 numbers came in strong, with revenue of Rs. 1,864.39 Cr (+23.50% YoY) and PAT growth of +24.60% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

MEDPLUS delivered strong Q4 with 23.5% revenue growth and 24.6% PAT growth, though FY26 revenue of 12.3% missed the 15% guidance. The diagnostics turnaround (Rs.17.4 Cr profit vs Rs.109.8 Cr loss) and strong cash conversion (2.26x PAT) are key positives. Margin expansion of 56 bps and 10.5% SSG demonstrate execution quality, though revenue guidance miss and regulatory risks warrant monitoring.

Key Investment Insights

Key Positives

• Revenue grew 23.5% YoY in Q4 to Rs.1,864.4 Cr
• PAT grew 24.6% YoY in Q4 to Rs.64 Cr, and 46.1% for FY26 to Rs.219.6 Cr
• EBITDA margin expanded 56 bps YoY to 9.07%
• Diagnostics segment turned profitable at Rs.17.4 Cr FY26 vs loss of Rs.109.8 Cr FY25
• Operating cash flow strong at Rs.495.6 Cr, 2.26x PAT
• ROE improved to 11.1% from 8.5%
• Private label constituted 22.2% of revenue in Q3

Risk Factors

• Revenue growth of 12.3% for FY26 missed ~15% guidance by 270 bps
• Drug license suspensions continue with ~Rs.31 lakhs revenue impact
• Working capital deteriorated with Rs.98.5 Cr cash tied up
• Finance costs grew 24.7% YoY driven by lease liability expansion