Health X Platform Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Sastasundar Ventures reported strong Q2 FY26 results with significant revenue and gross profit growth, driven by both its B2B and B2C segments. The company outlined a clear path to overall PAT positivity by FY26, supported by capital efficiency, strategic investments in AI and automation, and expansion plans. Management remains confident in achieving long-term revenue and margin targets despite being in a building phase.

Highlights

  • Revenue from operations for Q2 FY26 stood at INR307.9 crores, reflecting a 16.9% year-on-year and 10.6% quarter-on-quarter growth.

  • Gross profit reached INR22.9 crores, marking a 34.2% year-on-year and 9.8% quarter-on-quarter increase.

  • Gross profit margin expanded by 100 basis points to 7.5% in Q2 FY26, up from 6.5% in Q2 FY25.

  • Both core growth engines performed well, with RetailerShakti revenue at INR267.8 crores (up ~13% YoY) and Sastasundar B2C at INR39.4 crores (up ~60% YoY).

  • The company anticipates being PAT positive next year (FY26), driven by positive EBITDA from RetailerShakti and contribution margin from Sastasundar, supported by treasury income.

Concerns

  • Management acknowledged that the B2C growth, while strong, is still in a rebuilding phase, with the target of INR500 crores annual run rate in 18 months implying current lower scale.

  • The company is still in a 'building stage' and a 'start-up company,' with management noting that there might be 'a little bit hiccups maybe here and there' in its growth journey.

Key financials

  1. Revenue from Operations ₹307.9 Cr +16.9%YoY
  2. Gross Profit ₹22.9 Cr +34.2%YoY
  3. Gross Profit Margin 7.5%

What they filed

Q1 FY27: revenue down 20.0%, net profit down 363.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue0 0 0 0 0 −9%0 −18%0 −10%0 −20%
EBITDA-0 -0 -0 -0 -0 +44%-0 −48%-0 +4%-0 −72%
Net profit-0 -0 -0 -0 -0 +12%-0 −310%-0 −114%-1 −364%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹307.2 Cr Total
  • RetailerShakti ₹267.8 Cr 87.2%
  • Sastasundar B2C ₹39.4 Cr 12.8%

Capital allocation

high confidence
  • Capex Capex disclosed entirely through internal accruals and treasury income, without external capital
    • Sastasundar B2C AI tech development
    • Building high-tech stack, fulfillment capacity, AI tools, product expansion, category expansion, market expansion
    • Automation at FC and logistics to expand fulfillment capacity
    • Building 2 new warehouses (1 in Lucknow and 1 in Udaipur)
    We don't plan any external capital. As I mentioned in my opening remarks that we have a treasury of around INR400 crores. So around INR40 crores, INR50 crores must be the treasury income. That is what we planned in our technology expansion and/or warehouse expansion.
  • Buyback ₹100 Cr
    We raised total capital of INR322 crores that includes capital contribution by our company, Sastasundar Venture Limited, out of which we have returned the sum in the form of buyback of INR100 crores to Mitsubishi Corporation.
  • M&A Mitsubishi Corporation (part holding in Sastasundar Healthbuddy Limited) Divestment · Closed · Consideration ₹[object Object] (cash)

    To simplify corporate structure and facilitate merger/demerger scheme

    Increased Sastasundar Ventures Limited's holding in Sastasundar Healthbuddy Limited from 72.14% to 78.89%.

    We have completed buyback of part holding of Mitsubishi Corporation now for holding in Sastasundar Healthbuddy Limited has increased from 72.14% to 78.89%. This will facilitate the scheme for merger and demerger with holding company, and we are preparing to present the scheme to our Board for consideration in the at the financial year end 31st March 2026.
  • Liquidity Cash ₹565 Cr Net capital raise for Sastasundar Healthbuddy Limited was INR222 crores. Free treasury in Sastasundar Healthbuddy Limited is INR445 crores, and other subsidiary companies hold INR120 crores, totaling INR565 crores. The company is fully capitalized to fund its growth.
    Therefore, net capital raise is INR222 crores. The free treasury in the same Sastasundar Healthbuddy Limited is INR445 crores apart from business assets. So, the net treasury is almost double to the capital raise and the business is separately running very well. This clearly demonstrates our efficiency in capital utilization. The total treasury in Sastasundar Healthbuddy Limited is INR445 crores and other fellow subsidiary companies is INR120 crores, totaling to INR565 crores. This is apart from INR100 crores given for buyback. So, we are fully capitalized, fully capital-based company to fund our growth.

Guidance & targets

Profitability

  • RetailerShakti EBITDA Profitability · next quarter · High confidence breakeven
    For RetailerShakti, we are already running at a breakeven, and this breakeven will further be strengthened by next quarter. So next quarter, it will be EBITDA positive RetailerShakti segment-wise.

    — Banwari Lal Mittal

  • RetailerShakti EBITDA Margin Profitability · next year (FY26) · High confidence 1%
    And next year, we should be generating 1% EBITDA at RetailerShakti.

    — Banwari Lal Mittal

  • Overall EBITDA Margin Profitability · FY29/30 · Medium confidence 4-5%
    And this would generate around 4% to 5% EBITDA in the year, '29, '30.

    — Banwari Lal Mittal

Revenue

  • Sastasundar B2C Annual Run Rate Revenue · next 18 months · High confidence 500 crores
    But this is a great story, and we hope to have INR500 crore annual run rate in Sastasundar in next 18 months.

    — Banwari Lal Mittal

  • RetailerShakti Revenue Revenue · by 2030 · Medium confidence 4,000 crores
    No, next 2, 3 years, it will grow very -- in a very good speed. So by 2030, if we are planning to reach by around INR4,000 crore revenue company.

    — Banwari Lal Mittal

  • Total Revenue Revenue · FY29/30 · Medium confidence 6,000 crores
    And INR2,930 crores we are working for a revenue of INR6,000 crores, INR4,000 to RetailerShakti and around INR2,000 in B2C Sastasundar. And this would generate around 4% to 5% EBITDA in the year, '29, '30.

    — Banwari Lal Mittal

  • Sales per HealthBuddy Revenue · per year · High confidence 1 crore
    Yes, INR1 crore per HealthBuddy per year. You are right.

    — Banwari Lal Mittal

Volume

  • RetailerShakti Retailer Count Volume · next year end · High confidence 55,000

    From 40,000 today

    So we can say that right now, say, we have 40,000 retailers. So next year, we must be adding around 15,000 more retailers. So by next year end, we should be having 55,000 retailers.

    — Banwari Lal Mittal

  • Health Buddy Count Volume · March 2026 · High confidence 360

    From 260 today

    So if we say the target of next 18 months from here, so by March 2026, we should be having 360 health buddies.

    — Banwari Lal Mittal

Working Capital

  • Working Capital as % of Sales Working Capital · next 3-5 years · Medium confidence 3-4%

    From 5-6% today

    5 years -- 3 to 5 years down the line, it would add an improvement of 50 basis points to 100 basis points year-on-year. And this would be brought down to somewhere around 3% to 4% from here on.

    — Banwari Lal Mittal

Operations

  • Retailer App Rollout Operations · May/June 2026 · High confidence fully integrated
    So we expect rollout in the next 6 months' time. So in April 2026, we start to roll out in a beta phase and then another 2 months' time to stabilize. So say, May, June, it should be fully integrated with Retailers Shakti to make the order process very smooth and automated from the retail pharmacy.

    — Banwari Lal Mittal

Market context

  • Sastasundar B2C Contribution Margin Profitability · next year (FY26) · High confidence positive
    Sastasundar we will be the margin positive company next year. Margin, I mean, contribution margin that covers all our variable cost.

    — Banwari Lal Mittal

  • Sastasundar B2C EBITDA Profitability · FY28/29 · Medium confidence positive
    So we can say in the year '28, '29 financial year, we should be EBITDA positive in Sastasundar.

    — Banwari Lal Mittal

  • Overall Company PAT Profitability · next year (FY26) · High confidence positive
    So next year, we should be PAT positive company, considering EBITDA margin, positive margin from RetailerShakti and considering contribution positive margin from Sastasundar, considering treasury income directed by all our fixed costs, all our depreciation, we should be a PAT positive company.

    — Banwari Lal Mittal

What to watch in Q3 FY26

RetailerShakti EBITDA Positivity

next quarter
Current Running at breakeven
Target EBITDA positive

Why it matters

This is a key profitability milestone for the B2B segment, crucial for overall company PAT positivity.

For RetailerShakti, we are already running at a breakeven, and this breakeven will further be strengthened by next quarter. So next quarter, it will be EBITDA positive RetailerShakti segment-wise.

Risks & concerns

  • Growth trajectory hiccups due to start-up/building stage

    medium

    Management noted that as a 'start-up company' in a 'building stage,' there might be 'a little bit hiccups' in the quarter-to-quarter or year-by-year growth trajectory.

    Management acknowledged

  • Customer adoption of new technology and AI tools

    medium

    Management stated that customer adoption of new technology is a 'very, very long-term process' and that people are 'habituated only by a long-term process,' implying a challenge in rapid user uptake for their AI-driven solutions.

    Management acknowledged

Q&A highlights

7 direct
EBITDA Positive Timeline for Segments Direct
For RetailerShakti, we are already running at a breakeven, and this breakeven will further be strengthened by next quarter. So next quarter, it will be EBITDA positive RetailerShakti segment-wise. And next year, we should be generating 1% EBITDA at RetailerShakti. And so this is what about RetailerShakti. Sastasundar we will be the margin positive company next year. Margin, I mean, contribution margin that covers all our variable cost. And we will continue to invest in Sastasundar for 2, 3 years. So we can say in the year '28, '29 financial year, we should be EBITDA positive in Sastasundar.

Clarifies the specific timelines for profitability for both B2B and B2C segments, indicating continued investment in B2C.

Asked by Vivek Gupta

B2C Growth Sustainability and Drivers Partial
So Sastasundar, as you are aware, it was our old brand. So I won't -- I am not very much happy with the growth because this was already our customers just switched on to the new customers. So the growth will continue because once we when we handed over to Flipkart, the revenue per year was around INR500 crores in Sastasundar App. So that same customer base will come very soon. And I hope to achieve this INR500 crores in next 18 months' time.

Explains the source of B2C growth (returning customers from Flipkart) and sets a specific target for future B2C scale, indicating confidence in its sustainability.

Asked by Vivek Gupta

Long-term Revenue and EBITDA Guidance Direct
But as I have given the guidance for '29 to '30 year's, so I mean, I won't say guidance, but for the figure for which we are working for is INR2,930 crores. And INR2,930 crores we are working for a revenue of INR6,000 crores, INR4,000 to RetailerShakti and around INR2,000 in B2C Sastasundar. And this would generate around 4% to 5% EBITDA in the year, '29, '30. So this is what we are building for next 5 years.

Provides a long-term vision for revenue and EBITDA targets, offering insight into the company's strategic scale ambitions.

Asked by Vivek Gupta

RetailerShakti Growth Outlook Direct
No, next 2, 3 years, it will grow very -- in a very good speed. So by 2030, if we are planning to reach by around INR4,000 crore revenue company. So next 2, 3 years, we must be growing by more than 30% compounding. But this is in a making stage. We are in a start-up company. So you must appreciate that some quarter-to-quarter or year-by-year, the growth may reset.

Details the aggressive growth targets for the B2B segment while acknowledging the inherent volatility of a start-up phase.

Asked by Vilina Jain

Working Capital Sustainability and Targets Direct
See, we are a platform company. So if you ask me what is my personal ambition. So technically and fundamentally, this should be a negative working capital company, why there should be a working capital in a platform company. So these are purely sustainable, and we will continue to work to further reduce. So it will be sustainable.

Highlights management's ambition for negative working capital and commitment to reducing the current working capital percentage, indicating focus on capital efficiency.

Asked by Vilina Jain

Sastasundar B2C INR500 Crore Target Clarification Direct
No, I'm targeting the last quarter of next year. So in '26 last quarter, we should be able to close INR100 crores turnover from Sastasundar... Because these customers already exist, Mr. Abhishek. It's just the time that we bring them on the app and B2C customers have their face to come back. But those should come back. I mean, I'm looking forward to welcome them again. They had an experience of Sastasundar and they had our delivery system, they had faith in our brand. So we should be same by -- in next 18 months, we should be same at the time we hand it over to Flipkart. That is what it should be.

Clarifies the timeline and nature of the INR500 crore target for Sastasundar B2C, linking it to regaining previous customer base.

Asked by Abhishek

AI and Automation Use Cases and Impact Direct
The first use case is reducing the cost in automation part. So as I said earlier that our warehouse, say, in West Bengal warehouse, with a very little investment, we have been able to make the capacity by 3x without employing further capital... Call centers, the requirement of the automated call monitoring has been able to reduce our manpower by half. So these are the practical applications. Then coding, at coding, we are able to make it automated by AI coding. So the cost is again reduced.

Provides concrete examples of how AI and automation are being implemented to drive cost reduction, capacity expansion, and efficiency across operations.

Asked by Priti Agrwal

JITO Generic Channel Adoption and Strategy Direct
See, the JITO, we have a very different approach. I tell you about the India story. So in India, around 100 crores people are not in the medicine net. So out of 100 crores people, who are not into medicine net, I estimate that 30 crores is suffering from one of the chronic either from obesity, diabetic blood pressure. So there are choices. I've seen my father also, they don't go to the government hospitals because they take 1 full day time.

Explains the strategic rationale and target demographic for the JITO brand, focusing on underserved populations and affordable healthcare.

Asked by Priti Agrwal

2 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Highlights

Sastasundar Ventures Limited reported a robust Q2 FY26, with revenue from operations reaching INR307.9 crores, marking a 16.9% year-on-year and 10.6% quarter-on-quarter increase. Gross profit also saw significant growth, up 34.2% YoY to INR22.9 crores, leading to a 100 basis points expansion in gross profit margin to 7.5%. The RetailerShakti B2B segment contributed INR267.8 crores (up ~13% YoY), while the Sastasundar B2C segment demonstrated strong growth with INR39.4 crores (up ~60% YoY).

Strategic Path to Profitability

Management outlined a clear strategy for achieving profitability, targeting RetailerShakti to be EBITDA positive by the next quarter (Q3 FY26) and achieve a 1% EBITDA positive margin for the full FY26. The Sastasundar B2C segment is expected to become contribution margin positive next year. Overall, the company aims to be PAT positive by FY26, leveraging positive EBITDA from RetailerShakti, contribution margins from Sastasundar, and its treasury income to cover all costs.

Capital Efficiency and Funding Strategy

The company emphasized its capital-efficient model, highlighting a net capital raise of INR222 crores for Sastasundar Healthbuddy Limited, which now holds INR445 crores in free treasury. Including other subsidiaries, the total treasury stands at INR565 crores, excluding a INR100 crore buyback to Mitsubishi Corporation. This strong liquidity position ensures the company is fully capitalized to fund its growth initiatives, including technology and warehouse expansion, without needing external capital for at least the next five years.

AI and Automation for Operational Excellence

Sastasundar Ventures is heavily investing in AI and automation to enhance efficiency and scalability. Key applications include warehouse automation, which has tripled capacity with minimal investment and reduced manpower for picking and sorting. AI is also being deployed in call centers to halve manpower requirements and in coding processes. Future plans involve developing AI-driven counseling tools for customers and doctors to provide personalized health insights and improve service delivery.

Segment-Specific Growth and Expansion Plans

RetailerShakti is projected to grow at over 30% compounding annually for the next 2-3 years, targeting INR4,000 crores in revenue by 2030, with plans to expand its retailer base from 40,000 to 55,000 by next year-end. Sastasundar B2C aims to achieve an annual run rate of INR500 crores within the next 18 months, supported by an increase in Health Buddies from 260 to 360 by March 2026, each expected to generate INR1 crore in annual sales. The company also plans to roll out a fully integrated retailer app by May/June 2026.

Corporate Structure Simplification and Long-term Vision

The company has simplified its corporate structure by completing a buyback of Mitsubishi Corporation's stake, increasing its holding in Sastasundar Healthbuddy Limited to 78.89%. This move paves the way for a planned merger and demerger scheme with the holding company, to be presented to the Board by March 31, 2026. The long-term vision includes achieving INR6,000 crores in total revenue (INR4,000 crores from RetailerShakti and INR2,000 crores from Sastasundar B2C) with a 4-5% EBITDA margin by FY29/30.

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