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    AAKAAR Q4 FY26 earnings call

    AAKAAR
    Fast Moving Consumer Goods·15 May 2026
    Management Summary

    Aakaar Medical Technologies reported a strong H2 FY26, recovering from a challenging H1, with significant revenue and profit growth, improved margins, and reduced debtor days. The company launched several new high-potential products and expanded its customer base, while strategically deploying IPO capital for working capital rationalization. Management expressed confidence in sustaining growth and margins through operational efficiency and an evolving distribution model.

    Highlights

    6

    • H2 FY26 revenue of ₹41.63 crores, up 23% year-on-year and 64% over H1, demonstrating a decisive rebound after H1.

    • Record half-year levels for H2 EBITDA at ₹10.95 crores and PAT at ₹4 crores, with EBITDA margin at 26.3% and PAT margin at 17.77%.

    • Full year FY26 revenue grew to ₹67 crores (up 8.76% YoY), with EBITDA at ₹10.97 crores (up 11.82% YoY) and PAT at ₹6.6 crores (up 10% YoY), reflecting compounding profitability.

    • Debtors days significantly reduced from 209 days in June 2025 to 167 days by March 2026, and short-term borrowings declined, strengthening the balance sheet.

    • Gross margins improved from 54% to 59%, driven by improved operational efficiency and a higher contribution from Aakaar's own brands (37% of revenue).

    • Expanded customer base to over 6,300 doctors and launched five high-potential products, including US FDA approved Letybo and Saypha fillers, and exosome portfolios (VM Corporation Italy, Xomage).

    Concerns

    3

    • H1 FY26 reported a PAT loss of ₹0.78 crores (78 lakhs negative) due to upfront investments in conferences, workshops, and internal cycle meetings.

    • Siax business experienced a degrowth of over ₹1.5 crores due to delays in obtaining licenses for the new Letybo brand at the DCGI level.

    • The business model historically involved high credit terms, which required a deliberate tightening in H1, leading to short-term pain in favor of long-term financial discipline.

    Key financials

    Metrics

    14

    Periods

    2

    Headline

    9
    • H2 Revenue
      ₹41.63 Cr
      YoY+23%QoQ+64%
    • H2 EBITDA
      ₹10.95 Cr
    • H2 PAT
      ₹4 Cr
    • H2 EBITDA Margin
      26.3%
    • H2 PAT Margin
      17.8%

    FY26

    5
    • Revenue
      ₹67 Cr
      YoY+8.8%
    • EBITDA
      ₹10.97 Cr
      YoY+11.8%
    • PAT
      ₹6.6 Cr
      YoY+10%
    • EBITDA Margin
      16.4%
    • PAT Margin
      9.9%

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Cash ₹16 crores

    IPO proceeds of 14 crores plus interest from FD, totaling 15.3 crores, are yet to be utilized.

    Guidance & targets

    9
    CategoryTargetPriority
    Growth
    CAGR
    30% and above
    		High
    Profitability
    EBITDA Margin
    26%
    		High
    Profitability
    Gross Margin
    60%
    		High
    Working Capital
    Debtors Days
    110 days
    		High
    Expansion
    Xelix Clinics
    50 clinics
    		High
    Revenue
    Xelix Clinic Monthly Business
    3-4 lakh rupees per month per clinic
    		Medium
    Revenue
    Own Brand Portfolio Revenue
    50 crores
    		Medium
    Market Presence
    Main Board Listing
    listed on main board
    		High
    Operating Costs
    Team Size
    constant at 100 headcount
    		High

    What to watch in Q1 FY27

    5

    CAGR Achievement

    next quarter
    CurrentFY26 Revenue growth 8.76%
    TargetProgress towards 30%+ CAGR

    Why it matters

    Tracking the company's ability to achieve its ambitious long-term growth target.

    And I still maintain, going forward⏳, when we had our IPO launch that we need to maintain a CAGR of 30% and above to grow well and our eyes are set on getting listed on the main board.

    Risks & concerns

    3
    RiskSeverity

    H1 Underperformance

    H1 FY26 reported a PAT loss of ₹0.78 crores due to upfront investments in conferences and workshops, impacting overall annual profitability. — Management acknowledged

    medium

    Product License Delays

    Delays in obtaining licenses for the new Letybo brand at the DCGI level led to a degrowth of over ₹1.5 crores in the Siax business. — Management acknowledged

    medium

    High Working Capital Requirements

    The company requires significant working capital to maintain inventory and support the team during its transition and expansion phase, especially with new product launches. — Management acknowledged

    medium

    Q&A highlights

    8

    “Second half typically has lesser expenses, so that's the reason. So it is accrued over the year. Our EBITDAs have been strong and it will grow from here, but the H2 EBITDA typically is building with lesser expenses of conferences and other budgets.”

    Analyst questioned if the high H2 margin was sustainable or a one-off due to lower costs; management confirmed sustainability due to operational efficiency.

    asked by Natasha Singh

    2 min read6 chapters

    Detailed Narrative

    01

    Robust H2 and FY26 Financial Performance

    Aakaar Medical Technologies demonstrated a strong financial rebound in H2 FY26, with revenue reaching ₹41.63 crores, marking a 23% year-on-year increase and a 64% growth over H1. This led to record half-year EBITDA of ₹10.95 crores and PAT of ₹4 crores. For the full fiscal year 2026, the company reported a revenue of ₹67 crores, an 8.76% increase from FY25, with EBITDA growing by 11.82% to ₹10.97 crores and PAT by 10% to ₹6.6 crores, despite a challenging H1 which saw a PAT loss of ₹0.78 crores.

    02

    Strategic Product Launches and Portfolio Expansion

    The company significantly expanded its product portfolio by launching five high-potential products, including Letybo and Saypha, both US FDA approved, along with exosome portfolios from VM Corporation Italy and Xomage from Korea, and a unique device from DermLite, USA. These new offerings are strategically positioned in higher-margin, clinically differentiated segments. The hair care category, including internal brand DRS1512, showed a remarkable CAGR of 122%, while skincare and home care grew at 30% CAGR, contributing to the company's goal of enhancing its own brand portfolio.

    03

    Enhanced Operational Efficiency and Balance Sheet Strengthening

    Aakaar focused on improving operational efficiency, leading to a significant reduction in quarterly debtors days from 209 in June 2025 to 167 by March 2026. This was coupled with a decline in short-term borrowings and a healthy cash and cash equivalents position of ₹16 crores at year-end. The company also strategically deployed ₹9.3 crores of its IPO capital into working capital rationalization, contributing to an improvement in gross margins from 54% to 59%.

    04

    Evolving Distribution and Customer Engagement Model

    The customer base expanded to over 6,300 doctors, and the company is actively transitioning its B2B CSA-led distribution model towards a more distributed-driven approach. This shift aims to improve cash realization and operational efficiency by working with stockists who manage local collections. The new Xelix partner clinic platform, with 16 clinics already onboard and a target of 50 by year-end, serves as a marketing tool to drive customers to doctors and increase product consumption, without direct CAPEX investment.

    05

    Focus on High-Growth Aesthetic and Hair Care Segments

    Aakaar is actively pursuing growth in the aesthetic and hair care markets, including developing its own exclusive device for hair transplants. Proprietary products like DRS1512, with gross margins exceeding 80%, are seen as having strong potential both in India and internationally, supported by ongoing clinical studies. The company aims to increase its own brand portfolio revenue from ₹25 crores to ₹50 crores, leveraging its differentiated product architecture and market penetration strategies.

    06

    Future Outlook and Growth Targets

    Management reiterated its commitment to achieving a CAGR of 30% and above, with aspirations for a main board listing within three years. They expect to sustain the H2 EBITDA margin of 26% and target a gross margin of 60%. Efforts are focused on equalizing the H1-H2 revenue distribution, with H1 FY27 anticipated to perform better than H1 FY26, driven by continued operational discipline and strategic growth initiatives.

    This is an AI-generated summary of a publicly available earnings call transcript.