Medplus Health Services earnings calls.

MedPlus delivered a strong Q3 FY26 with notable operational execution. The company expanded its store network to 5,112 storesCurrent 5,112 stores. Reported change: +500 YoY. (net addition of 182 in Q3, 400 YTD) while achieving 10.5%Current 10.5%. Reported change: +10.5pp YoY. SSSG for mature stores—driven by revised incentive structures incorporating total sales targets and improved inventory availability from new warehouses. Private label pharma now constitutes 18.9% of pharma salesCurrent 18.9% of pharma sales. Reported change: +1,100bps YoY. versus 7.9% pre-launch, while private label FMCG continues gaining traction with new categories like food and wellness. Diagnostics posted strong growth with EBITDA margin at 15.5%Current reported value: 15.5%. No comparable prior figure is available in the source record., and active subscription plans grew to 1.8 lakh covering 3.68 lakh lives. Gross margins held stable despite mix shifts, supported by 65-70% gross margins on private label pharma versus 13-14% on branded. The company guided for 600 store additions in FY26 but declined to provide FY27 targets or specific margin guidance, though management expressed confidence in reaching 6% pharmacy operating margins over time. Key risks include labor code implementation costs (Rs 7 crore one-time charge) and pending regulatory clarity on wage notifications.