Indian Economy
FY 2025-26 reaffirmed Indias position as one of the worlds fastest-growing major economies. According to the National Statistics Office (NSO), real GDP is estimated to have expanded by 7.7%, driven by resilient domestic demand, robust investment activity and sustained government capital expenditure. Private Final Consumption Expenditure (PFCE), the largest component of GDP, grew by more than 7.5% during the year and accounted for approximately 61.5% of GDP, its highest share in over a decade, highlighting the strength of household consumption.
Outlook
Indias economic outlook remains favourable, underpinned by strong domestic fundamentals and policy continuity. The IMF projects real GDP growth of 6.5% in both FY 2026-27 and FY 2027-28, positioning India among the worlds fastest- growing major economies. Rising incomes, a resilient labour market, expanding infrastructure investments and improving private sector participation are expected to sustain growth momentum. Private consumption, just like last year, is likely to remain the principal engine of economic growth.
Inflation is expected to remain well anchored, supported by easing food prices, stable supply conditions and prudent monetary policy. The Reserve Bank of India projects CPI inflation at around 4.0% for FY 2026-27, broadly in line with its medium-term target, creating a supportive environment for consumption and investment. While global commodity price volatility, geopolitical uncertainties and weather-related disruptions remain key risks, Indias macroeconomic stability, investment-led development agenda and ongoing structural reforms provide a strong foundation for sustained long-term growth.
Sources: International Monetary Fund (World Economic Outlook, April 2026); Reserve Bank of India Monetary Policy Statements and Annual Report; Ministry of Statistics and Programme Implementation (MoSPI) Provisional Estimates FY 2025-26
Source: https://www.moneycontrol.com/news/business/ economy/consumer-spending-holds-firm-in-india-s-7-7-gdp- growth-but-watch-out-for-oil-monsoon-hazards-13942371.html https://www.mospi.gov.in/uploads/latestReleases/latest release 1780655857536 5aRs. 01869-ca4a-422d-b7a7- 57b81da60932 Press Note on GDP Estimates for Q4 202526 and PE FY 2025-26 F.pdf?
https://prsindia.org/policy/report-summaries/economic-
https://www.imf.org/en/countries/ind?
https://newsonair.gov.in/rbi-to-announce-its-first-bi-monthly-
monetary-policy-statement-for-financial-year-2026-27-today/?
Indian Pharma Industry Best Practices
Healthcare and pharmaceutical best practices comprise a set of standardised, science-based and customer-centric approaches that ensure the safe, efficient and reliable delivery of healthcare products and services. These practices encompass regulatory compliance, quality assurance, supply chain excellence, patient safety, digital innovation and ethical governance. In an increasingly complex healthcare ecosystem, they provide the foundation for maintaining trust, improving healthcare outcomes and ensuring operational resilience.
As healthcare delivery becomes more integrated, technology- enabled and consumer-focused, industry leaders are continually raising standards across pharmacy retail, diagnostics and healthcare services. Organisations that embrace best practices are better positioned to enhance patient access, improve service quality, optimise operational efficiency and respond effectively to evolving healthcare needs. By aligning innovation with quality, compliance and sustainability, they create longterm value for patients, customers, employees and other stakeholders.
1. Regulatory Compliance and Quality Excellence
• Adhere to applicable regulatory standards governing pharmaceuticals, healthcare retail and diagnostics.
• Maintain robust quality management systems (QMS) across sourcing, storage, distribution and healthcare services.
• Implement quality-by-design (QbD), risk-based quality management and continuous improvement practices.
• Conduct regular audits, inspections and compliance reviews to ensure operational integrity.
• Promote a strong culture of quality, patient safety and accountability.
2. Patient-Centric Healthcare Delivery
• Ensure timely and affordable access to medicines, healthcare products and diagnostic services.
• Deliver seamless omnichannel experiences across physical stores, digital platforms and home delivery channels.
• Support medication adherence and patient engagement through personalised healthcare solutions.
• Maintain transparency in pricing, product information and healthcare services.
• Continuously enhance customer experience through responsive and reliable service.
3. Supply Chain and Inventory Excellence
• Leverage demand forecasting and inventory optimisation to ensure product availability.
• Maintain end-to-end traceability and visibility across the supply chain.
• Strengthen procurement and supplier management through strategic partnerships.
• Implement temperature-controlled logistics for sensitive healthcare products.
• Build resilient supply chains through diversification and proactive risk management.
4. Digital Transformation and Technology Adoption
• Utilise automation, artificial intelligence and data analytics to improve operational efficiency.
• Integrate ERP, CRM and digital healthcare platforms to streamline processes.
• Enable digital prescriptions, online ordering and home delivery capabilities.
• Leverage advanced analytics for demand forecasting, inventory planning and customer engagement.
• Strengthen cybersecurity and data governance frameworks to protect customer information.
• Embracing Industry 4.0 technologies, including machine learning, digital twins and advanced analytics to improve manufacturing reliability and productivity.
• Smart factories, Manufacturing Execution Systems (MES), electronic batch records and predictive maintenance solutions are enhancing efficiency, traceability and operational resilience.
5. Diagnostics and Healthcare Service Excellence
• Maintain accredited diagnostic facilities and standardised operating procedures.
• Implement rigorous quality assurance and quality control protocols.
• Deliver accurate, reliable and timely diagnostic reports.
• Invest in advanced diagnostic technologies and skilled healthcare professionals.
• Focus on improving healthcare outcomes through integrated service offerings.
6. Innovation and Continuous Improvement
• Increasing investments in complex generics, biosimilars, specialty pharmaceuticals and next-generation therapies.
• Expanding capabilities in peptides, oligonucleotides, antibody-drug conjugates (ADCs) and novel drug delivery platforms while fostering collaborations with academia, biotechnology firms and global pharmaceutical innovators to accelerate product development.
• Encourage innovation in healthcare delivery, customer engagement and operational processes.
• Invest in digital tools and emerging technologies to enhance efficiency and convenience.
• Foster collaboration with healthcare providers, technology partners and research institutions.
• Continuously evaluate evolving customer needs and healthcare trends.
• Drive a culture of learning, adaptability and operational excellence.
7. Workforce Development and Safety
• Provide continuous training on healthcare practices, regulatory requirements and emerging technologies.
• Strengthen professional capabilities of pharmacists, diagnosticians and frontline employees.
• Promote workplace health, safety and employee wellbeing.
• Foster a culture of diversity, inclusion and employee engagement.
• Develop leadership capabilities to support long-term organisational growth.
8. Ethical Governance and Sustainability
• Uphold the highest standards of corporate governance and ethical business conduct.
• Ensure responsible sourcing and transparent stakeholder engagement.
• Strengthen pharmacovigilance and product safety monitoring mechanisms.
• Implement initiatives focused on energy efficiency, waste reduction and environmental stewardship.
• Adopting green chemistry principles, renewable energy, water conservation initiatives, zero-liquid- discharge facilities practices to reduce environmental impact while improving resource efficiency.
• Sustainability considerations are increasingly integrated into investment and operational decisions.
• Support community health programmes and public healthcare awareness initiatives.
9. Data-Driven Decision Making
• Use business intelligence and analytics to optimise product assortment and pricing.
• Monitor customer behaviour and healthcare trends to enhance service offerings.
• Improve operational planning through predictive analytics and real-time insights.
• Enable informed decision-making across business functions.
• Leverage data to improve efficiency, customer satisfaction and business performance.
10. Global Standards and Industry Leadership
• Benchmark operations against global healthcare and pharmaceutical best practices.
• Adopt internationally recognised quality, safety and operational standards.
• Build capabilities that support scalability, resilience and long-term competitiveness.
• Encourage innovation-led growth while maintaining affordability and accessibility.
• Create sustainable value for patients, customers, employees, shareholders and society.
Indian Pharmacy Retail Industry
The Indian pharmacy retail industry is a critical pillar of the healthcare ecosystem, ensuring access to medicines, wellness products and healthcare services across urban and rural markets. Driven by rising healthcare awareness, increasing chronic disease burden, higher disposable incomes and expanding health insurance coverage, the sector continues to witness strong growth.
At the same time, organised pharmacy chains and digital health platforms are transforming the industry through technology-enabled supply chains, omnichannel retail models and integrated healthcare services. As consumer expectations evolve, leading players are increasingly adopting best practices focused on quality, accessibility, compliance, operational efficiency and patient-centricity.
Driven by favourable demographic shifts, increasing health awareness and the rapid adoption of digital healthcare solutions, the Indian Pharmacy Retail Market is currently undergoing significant transformation and robust expansion.
The Indian pharmacy retail market is undergoing a structural reset, valued between USD 24-27 billion. Powered by a 10% Compound Annual Growth Rate (CAGR), the landscape is shifting from traditional medicine distribution to comprehensive wellness hubs, heavily influenced by tech- driven deliveries and organized retail chains..
Historically, the Indian pharmacy retail sector has been characterised by its fragmented nature, with a predominance of unorganised neighbourhood stores. However, a discernible shift towards organised retail formats and the burgeoning e-pharmacy model is reshaping the competitive landscape. These organised segments are demonstrating significantly faster growth rates, attracting substantial investment and strategic interest from major players.
Leading pharmacy chains are strategically adopting omnichannel approaches, integrating advanced technology, and diversifying their product and service portfolios to include high-margin segments such as wellness products and
diagnostic services. These strategies are crucial for capturing market share and enhancing profitability within a complex regulatory environment and an intensely competitive market. The industrys evolution is further influenced by ongoing consolidation efforts, as larger entities seek to expand their footprint and achieve economies of scale, positioning the sector for sustained long-term growth.
Government Initiatives
Government initiatives continue to play a significant role in expanding healthcare access and strengthening Indias pharmacy retail ecosystem. The continued expansion of the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) is improving the availability of affordable generic medicines through a growing network of Pradhan Mantri Bharatiya Janaushadhi Kendras (PMBJKs). At the same time, the Ayushman Bharat ecosystem is enhancing healthcare access through wider patient coverage, expanded healthcare infrastructure and a stronger focus on preventive and primary care through Health and Wellness Centres. The Ayushman Bharat Digital Mission (ABDM) and Digital India initiatives are further accelerating healthcare digitisation by enabling digital health IDs, electronic health records, interoperable healthcare systems, digital payments, online healthcare services and technology-enabled healthcare delivery models.
Government emphasis on generic prescribing, affordable healthcare and reduced out-of-pocket expenditure is supporting greater awareness and acceptance of quality generic medicines. National Pharmaceutical Pricing Initiatives, guided by oversight from the National Pharmaceutical Pricing Authority (NPPA), continue to focus on ensuring the affordability of essential medicines while balancing sustainable industry growth. In parallel, broader self-reliance and industrial development initiatives are strengthening the domestic pharmaceutical ecosystem by supporting local manufacturing, improving supply-chain resilience and reducing dependence on imports for critical pharmaceutical inputs, thereby creating a more stable and reliable supply environment for pharmacy retailers.
Key Trends
1. Growth of Organised Pharmacy Retail
• Increasing consumer preference for trusted and professionally managed pharmacy chains.
• Expansion of organised players into Tier II and Tier III cities.
• Greater focus on standardised service, quality assurance and customer experience.
2. Rise of Omnichannel Healthcare
• Convergence of physical stores, online ordering and home delivery.
• Growing adoption of digital platforms for medicine purchases and healthcare services.
• Seamless integration of offline and online customer journeys becoming a key differentiator.
3. Integration of Diagnostics and Healthcare Services
• Pharmacy retailers evolving into integrated healthcare platforms.
• Expansion into diagnostics, teleconsultation and preventive healthcare services.
• Growing demand for one-stop healthcare solutions.
• 5. Digital Health and Data-Driven Operations
• Adoption of analytics, AI and automation across supply chain and customer management.
• Increased use of digital health records and technology- enabled healthcare delivery.
• Enhanced focus on personalised healthcare
experiences.
4. Convenience-Led Consumption
• Rising consumer demand for faster medicine fulfilment and doorstep delivery.
• Emergence of quick-commerce models in healthcare retail.
• Greater emphasis on accessibility and service responsiveness.
5. Supply Chain Modernisation
• Adoption of automated inventory management and demand forecasting systems.
• Investments in cold-chain logistics and distribution infrastructure.
• Enhanced focus on product traceability and supply- chain resilience.
6. Regulatory and Affordability Focus
• Continued government emphasis on affordable healthcare and generic medicines.
• Strengthening of digital health infrastructure through national healthcare initiatives.
• Increased regulatory focus on quality, transparency and patient safety.
Challenges
1. Intensifying Competition
• Rising competition from organised pharmacy chains, e-pharmacy platforms and quick-commerce players.
• Increasing customer expectations around convenience, pricing and delivery speed.
• Pressure on traditional pharmacy models to differentiate through service and customer experience.
2. Margin Pressure
• Continued pricing regulations on essential medicines limiting profitability.
• Growing competition leading to discounting and promotional intensity.
• Rising operating costs, including employee expenses, rentals and logistics costs.
3. Regulatory Complexity
• Evolving regulations governing pharmacy retail, e-pharmacy operations and medicine distribution.
• Compliance requirements across licensing, prescription validation, storage and record management.
• Need for continuous monitoring ofpolicy developments and regulatory changes.
4. Supply Chain and Inventory Management
• Ensuring uninterrupted availability of medicines across a large and diverse network.
• Managing inventory efficiently while minimising stockouts and expiries.
• Maintaining cold-chain infrastructure for temperature- sensitive products.
5. Digital Disruption and Technology Investments
• Rapid shift towards omnichannel healthcare and digital engagement.
• Requirement for continuous investment in technology, cybersecurity and analytics capabilities.
• Balancing digital transformation with operational efficiency and cost management.
6. Fragmented Market Structure
• Large presence of independent and unorganised pharmacies across India.
• Challenges in standardising service quality and customer experience across the industry.
• Market fragmentation leading to pricing pressures and intense local competition.
Opportunities
1. Market Consolidation
• The Indian pharmacy retail market remains highly fragmented, with a large share held by independent pharmacies.
• Organised players have a significant opportunity to gain market share through network expansion, acquisitions and superior customer experience.
• Scale can drive procurement efficiencies, stronger supplier relationships and improved profitability.
2. Penetration into Underserved Markets
• Large parts of Tier II, Tier III and rural India remain underserved by organised healthcare retail.
• Expanding access to quality medicines and healthcare services in these markets presents a substantial growth opportunity.
• Rising incomes and improving healthcare awareness are expected to support demand growth.
3. Rising Healthcare Expenditure
• Increasing household spending on healthcare is expanding the addressable market for pharmacy retailers.
• Greater focus on health management, disease prevention and treatment adherence is expected to support long-term demand.
• Healthcare is increasingly being viewed as an essential consumer spending category.
4. Private Label and Higher-Margin Categories
• Growing consumer acceptance of private-label healthcare, wellness and personal care products offers margin enhancement opportunities.
• Expansion into nutraceuticals, preventive healthcare products and specialised wellness categories can diversify revenue streams.
• Strong customer trust can support premiumisation and category expansion.
5. Healthcare Ecosystem Integration
• Opportunities exist to create integrated healthcare platforms connecting pharmacy, diagnostics, teleconsultation and preventive care.
• A broader healthcare offering can increase customer engagement and improve lifetime value.
• Integrated models can strengthen competitive differentiation and customer retention.
6. Government-Led Healthcare Expansion
• Continued investments in healthcare infrastructure, digital health and affordable healthcare initiatives are expected to expand healthcare access.
• Public healthcare programmes can increase healthcare utilisation and medicine consumption.
• Structural improvements in healthcare delivery will create long-term growth opportunities for organised players.
7. Technology-Led Productivity Gains
• Automation, analytics and digital tools offer opportunities to improve operational efficiency and reduce costs.
• Enhanced forecasting, inventory management and customer insights can improve profitability and service quality.
• Technology adoption can support scalable and sustainable growth.
Source: https://www.nexdigm.com/market-research/report-
store/india-pharmacy-retail-market-report/
MedPlus position in the Indian Pharmacy Retail Industry
MedPlus continues to strengthen its position as one of Indias most trusted and recognised pharmacy retail brands, playing a pivotal role in improving access to quality healthcare products and services. In an industry undergoing rapid transformation,
the Company has successfully evolved beyond traditional pharmacy retail to create an integrated healthcare ecosystem that combines pharmacies, diagnostics, wellness offerings and digital healthcare solutions. Its strong customer-centric approach, focus on convenience and commitment to affordability have enabled it to build enduring relationships with consumers across diverse markets.
In a sector that remains largely fragmented, MedPlus has emerged as a leading organised player by consistently delivering standardised service, genuine products and a seamless customer experience. Its cluster-based expansion strategy, technology-enabled operations and efficient supply chain network have created a scalable platform capable of supporting sustained growth while maintaining operational discipline. The Companys growing portfolio of private- label products further strengthens its value proposition by enhancing affordability for customers and differentiation within a competitive marketplace.
As healthcare consumption patterns continue to evolve, MedPlus is well positioned to benefit from rising health awareness, increasing prevalence of chronic diseases, growing demand for preventive healthcare and the ongoing formalisation of the pharmacy retail sector. Its integrated omnichannel model, expanding presence in emerging markets and continued investments in technology and healthcare services provide a strong foundation to capture future opportunities. By combining scale with innovation and accessibility with trust, MedPlus remains well placed to create long-term value for customers, stakeholders and the broader healthcare ecosystem.
MedPlus Takes
Indias pharmacy retail industry is entering a new phase of evolution, driven by increasing healthcare awareness, rising chronic disease prevalence, expanding insurance coverage and growing consumer expectations for convenience and accessibility. The shift towards organised retail, digital healthcare adoption and integrated healthcare delivery models is reshaping the competitive landscape, creating opportunities for players that can combine scale, trust and operational excellence.
We believe the future of pharmacy retail will be defined by the ability to deliver a seamless healthcare experience across channels. Consumers are increasingly seeking reliable access to medicines, diagnostics, wellness products and healthcare services through a single platform. This trend is accelerating the convergence of physical stores, digital platforms and healthcare services, making omnichannel capabilities and customer engagement critical differentiators.
At MedPlus, we are well positioned to participate in this transformation. Our extensive retail network, technology- enabled operations, integrated healthcare offerings and customer-centric approach provide a strong foundation to address evolving consumer needs. We remain focused on strengthening our market presence, enhancing service quality, expanding access to healthcare in emerging markets and
leveraging technology to improve convenience, efficiency and customer experience.
As the industry continues to formalise and consolidate, we believe trusted brands with strong governance, efficient supply chains and scalable business models will be best placed to create sustainable long-term value. Our strategy remains aligned with these structural trends, enabling us to contribute meaningfully to Indias healthcare journey while delivering consistent value to all stakeholders.
Company Overview
MedPlus, established in 2006 by CEO Mr. Gangadi Madhukar Reddy, is a leading organised pharmacy retailer with a significant online and offline presence. What sets MedPlus apart, making it Indias second-largest pharmacy chain by revenue, is its comprehensive, backward-integrated operations. The Company was established with a vision to provide customers with genuine, high-quality medicines by leveraging technology and addressing inefficiencies in the supply chain.
MedPlus is engaged in retail and wholesale operations, as well as the import, distribution, manufacturing, and contract manufacturing of private-label pharmaceuticals, wellness products, and FMCG goods. Additionally, it operates comprehensive diagnostic centres exclusively in Hyderabad, Telangana.
With a network of nearly 5,330 stores spread across thirteen states, one union territory and a workforce of over 28,000 permanent full-time employees, MedPlus has built a robust in-
house, backward-integrated value chain. This integrated model has contributed significantly to its growth and enabled the Company to become the second-largest pharmacy retail chain in India by revenue.
i Segmental Revenue
| Particulars | Revenue | |
| FY 2026 | FY 2025 | |
| Retail | 67,601.06 | 60,268.86 |
| Diagnostic services | 1,309.87 | 1,081.07 |
| Others | 13.73 | 10.60 |
Retail Segment consists of Pharmacy stores across India, the Company has 5,330 stores (A net total of 618 stores were opened during FY2026, compared to 305 stores opened during FY2025).
Diagnostics Segment consists of pathology and radiology services, the Company has four full-service Diagnostic Centres and eight level-2 Diagnostic Centres as on March 31,2026, and our customers have embraced it enthusiastically.
The other segment includes insurance broking business.
Private label share to consolidated revenue climbed from 19.29% to 21.88% in FY 2025. Consolidated gross margin has increased from 24.37% to 26.23% in FY 2026. This marks a new high for MedPlus and demonstrates the strength of its supply chain and operational skills.
Financial Overview
Summarised consolidated Profit and Loss statement
| Particulars | FY 2026 | % of Income FY 2026 | FY 2025 | % of Income FY 2025 |
| Total Income | 69,637.90 | - | 61,846.69 | - |
| Cost of goods sold (Purchases, materials, inventory) | 50,846.07 | 73.01% | 46,406.61 | 75.03% |
| Employee benefits expense | 8,845.28 | 12.70% | 7,260.17 | 11.74% |
| Finance costs | 1,204.93 | 1.73% | 1,025.86 | 1.66% |
| Depreciation and amortisation expense | 2,828.68 | 4.06% | 2,498.43 | 4.04% |
| Other expenses | 3,159.64 | 4.54% | 2,822.73 | 4.56% |
| Total Expenses | 66,884.60 | 96.05% | 60,013.80 | 97.04% |
| Profit before tax | 2,753.30 | 3.95% | 1,832.89 | 2.96% |
| Total tax expense / (benefit) | 557.24 | 0.80% | 330.56 | 0.53% |
| Profit after tax | 2,196.06 | 3.15% | 1,502.33 | 2.43% |
Total Income
Total income increased from RS. 61,846.69 to RS. 69,637.90 between FY2024-25 and FY2025-26, indicating 12.60% growth in FY2025-26. This Growth has been contributed by mature stores and new stores.
Cost of Goods Sold
The Companys Cost of Goods Sold (COGS) for FY2025-26 was RS. 50,846.07 million. This represents an increase of 9.57%,
compared to RS. 46,406.61 million in FY2024-25.
Employee Benefit Expenses
Employee benefit expenses increased from RS. 7,260.17 to RS. 8,845.28 reflecting a 21.83% increase in FY 2026. This incremental cost is mainly driven by additional manpower for new stores and general increase in Salaries and impact of new wage code.
Finance Costs
It has increased by 17.46% in FY2025-26. The Company reported finance costs of RS. 1,204.93 million for FY2025-26, which is higher than the RS. 1,025.86 million recorded in FY2024-25. This incremental cost is mainly due to addition of new stores and warehouses.
Depreciation and Amortisation Expenses The Depreciation & Amortisation expenses are RS. 2,828.68 million for FY2025-26. It represents an 13.22% increase in expenses compared to C 2,498.43 million in FY2024-25.
Other Expenses
Other expenses increased from RS. 2,822.73 to RS. 3,159.64 reflecting a 11.94% increase in FY 2026, primarily driven by
increase in electricity, packing and forwarding charges and other operational expenses primarily on account of addition of new stores and expansion of warehouses compensated by decrease in advertisement and sales promotion expenses.
Total Tax Expenses
Tax expenses for FY2026 are RS. 557.24 compared to RS. 330.56 in FY2025. The increase is due to higher profits in FY2026. In FY2025, tax expenses were lower because of a deferred tax benefit from claiming the remaining portion of a tax incentive under section 80JJAA.
Profit After Tax
The Company reported a Profit After Tax (PAT) of RS. 2,196.06 million for FY 2025-26. This marks a significant increase of 46.18% compared to RS. 1,502.33 million in FY 2024-25.
Key Balance Sheet Items
| Particulars | FY 2026 | FY 2025 | % Change YoY |
| Property, plant and equipment | 3,183.61 | 2,906.71 | 9.53% |
| Inventories | 13,816.94 | 13450.99 | 2.72% |
| Cash and Bank balances including bank deposits | 5,942.08 | 4422.56 | 34.36% |
| Trade payables | 3,069.5 | 2,989.59 | 2.67% |
| Trade receivables | 269.59 | 132.71 | 103.14% |
| Total equity (Shareholders funds / Net worth) | 19,746.54 | 17,398.99 | 13.49% |
| Particulars | FY 2026 | FY 2025 | % Change YoY |
| Inventory Turnover (Days) | 73.17 | 80.01 | -8.55% |
| Interest Coverage Ratio | 3.29 | 2.79 | 17.88% |
| Current Ratio | 3.00 | 3.20 | -6.13% |
| Debtors Turnover (Days) | 1.43 | 0.79 | 80.85% |
| Operating Profit Margin | 5.74% | 4.66% | 23.26% |
| Net Profit Margin | 3.19% | 2.45% | 30.13% |
| Return on Net Worth | 11.82% | 9.06% | 30.54% |
Explanation of the Ratios
• Inventory turnover ratio measures the efficiency with which a Company utilises or manages its inventory. It establishes the relationship between revenue from operations and inventory held during the period. It is calculated by dividing the inventory with revenue from operations and multiplied by 365 days.
• Interest Coverage Ratio measures how many times a company can cover its current interest with its available earnings. It is calculated by dividing earnings before interest and tax by total finance cost.
• Current ratio indicates a companys overall liquidity position and measures companys ability to pay short-term obligations or those due within one year. It is calculated by dividing current assets by current liabilities.
• Debtors(Trade receivables) turnover ratio measures the efficiency with which a Company utilises or manages its
debtors. It establishes the relationship between revenue from operations and debtors held during the period. It is calculated by dividing the debtors with revenue from operations and multiplied by 365 days.
• Operating margin % - operating margin measures how much profit a company makes on a rupee of sales after paying for cost of goods sold, employee benefits expenses, other expenses and depreciation and amortization expenses, but before paying finance cost and tax. It is calculated by dividing EBIT by revenue from operations.
• Net profit margin % net profit margin measures how much net profit a company makes on a rupee of sales It is calculated by dividing a companys profit after tax by its revenue from operations.
• Return on Networth/ equity is a measure of profitability of a company expressed in percentage. It is calculated by dividing net profit by average net worth/ total equity.
Risk Management
MedPlus, like any large retail pharmacy chain, faces various risks across its operations. Effective mitigation strategies are crucial for its sustained success. Heres a breakdown of some key risks and their potential mitigation strategies:
| Risk Category | Description of Risk | Mitigation Strategies |
| Intense Competition and Pricing Pressure | The pharmacy retail industry remains highly competitive, with organised retailers, e-pharmacies and quick-commerce platforms competing on pricing, convenience and customer engagement. Continued pricing pressure may impact margins, particularly in branded pharmaceutical products. | • Strengthening omnichannel capabilities across pharmacy, diagnostics and healthcare services. |
| • Expanding private-label portfolio to improve differentiation and margins. | ||
| • Leveraging loyalty programmes and customer engagement initiatives to enhance retention. | ||
| • Maintaining a value-driven pricing strategy supported by supply-chain efficiencies. | ||
| • Diversifying revenue streams through diagnostics and allied healthcare services. | ||
| Regulatory and Compliance Risk | The Company operates in a highly regulated environment and is exposed to evolving regulations related to pharmaceutical retail, drug pricing, online pharmacy operations, data privacy and healthcare services. Non-compliance may result in penalties, reputational damage and business disruption. | • Continuous monitoring of regulatory developments through dedicated compliance mechanisms. |
| • Regular audits, policy reviews and employee training programmes. | ||
| • Strong internal controls and governance frameworks. | ||
| • Engagement with industry bodies and legal experts to ensure proactive compliance. | ||
| Supply Chain and Inventory Risk | Ensuring uninterrupted availability of medicines and healthcare products across a large store network requires efficient inventory and distribution management. Risks include stock-outs, excess inventory, supplier concentration and counterfeit products. | • Direct sourcing from manufacturers and supplier diversification. |
| • Deployment of technology-enabled forecasting and inventory management systems. | ||
| • Continuous investments in warehousing, logistics and distribution infrastructure. | ||
| • Robust quality control processes and product traceability mechanisms. | ||
| Cybersecurity and Data Privacy Risk | Increasing digitalisation exposes the Company to cybersecurity threats, data breaches and system disruptions, which may impact operations, customer trust and regulatory compliance. | • Implementation of advanced cybersecurity controls, including firewalls, encryption and intrusion detection systems. |
| • Periodic security assessments and vulnerability testing. | ||
| • Employee awareness programmes on cyber hygiene and phishing risks. | ||
| • Defined incident response and recovery protocols. | ||
| • Regular reviews of third-party technology partners and systems. | ||
| Financial Risk | Rising operating costs, including employee expenses, rentals and utilities, may impact profitability. Investor sentiment may also be influenced by capital structure-related developments. | • Focus on operational efficiency and cost optimisation initiatives. |
| • Leveraging technology and analytics to improve store- level productivity. | ||
| • Maintaining healthy cash flows and financial discipline. | ||
| • Continuous monitoring of capital allocation and balance- sheet strength. | ||
| Human Capital Risk | The ability to attract, develop and retain qualified pharmacists, healthcare professionals and skilled employees remains critical to delivering service excellence and supporting growth. | • Competitive compensation and employee welfare programmes. |
| • Continuous learning, training and capability-building initiatives. | ||
| • Performance-driven and inclusive workplace culture. | ||
| • Leadership development and succession planning for key roles. | ||
| • Employee engagement initiatives aimed at improving retention and productivity. |
Internal Control and Adequacy
The company maintains a strong internal control structure that governs all its activities and operations. It continuously aims to integrate all aspects of the business, from fundamental operational tasks to critical strategic support functions.
The company ensures that all its methods comply with established rules, practices, and legal requirements. To achieve this, it has developed well-documented policies, clear authorisation and approval processes, and routine audits.
The internal audit system encompasses all financial and operational controls across every department, division, and function. The internal audit team regularly examines the organisations different operations and identifies areas for improvement.
Human Resources
MedPlus considers its team members as its most valuable resources, recognising their significant contribution to the companys long-term vision and sustained success. The company is committed to treating all team members equally and fairly, regardless of their position within the organisation. In turn, all team members are dedicated to acting with compassion, integrity, honesty, and high ethical standards as
they pursue their career aspirations within the company.
As an organisation, MedPlus is committed to fostering a culture that provides an energetic, enabling, safe, and open work environment for all its team members. The company also focuses on recruiting talent from diverse, world-class institutions and then nurturing and retaining them. This approach aims to help employees develop cross-functional expertise and consistently deliver a high-quality experience for all customers. In compliance with the requirements of paragraph B(1 )(h) of Schedule V of the Listing Regulations, there have been no material developments in this area.
Cautionary statement
The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations, maybe forward-looking statements within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government regulations, tax laws & other statutes & other incidental factors.
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