Health X Platform Limited

HEALTHX (formerly Sastasundar Ventures Limited) reported a robust Q3 FY26, with revenue from operations increasing by 22% year-on-year to ₹341 crores. The company achieved significant margin expansion, with gross margin rising to 7.6% from 6% in the corresponding quarter of the previous year. EBITDA losses narrowed considerably by 41% year-on-year to negative ₹14 crores, and EBIT turned positive at ₹1 crore, a substantial improvement from a loss of ₹37 crores in Q3 FY25. For the nine-month period, revenue grew 15% year-on-year to ₹928 crores, culminating in a positive PAT of ₹11 crores, reversing a loss of ₹151 crores in 9-month FY25.

The company is committed to investing in high-tech, AI-enabled platforms to enhance customer experience, optimize supply chain efficiency, and strengthen personalized capabilities. These technology investments, including a dedicated annual budget of ₹25 crores for the AI studio team, are anticipated to yield measurable operating leverage benefits starting from FY27. Additionally, HEALTHX is actively expanding its product categories and strengthening vendor partnerships to support sustained growth momentum over the next 2-3 years.

The Healthbuddy model demonstrates positive unit economics at the contribution level, with the current count of 293 Healthbuddies projected to grow by 50-60% year-on-year, reaching approximately 400 by March 31, 2027. Retailer Shakti, the B2B platform, achieved EBITDA positivity in January 2026, ahead of its Q4 FY26 target, and is expected to deliver sustainable EBITDA positive performance in FY27, aiming for 0.1% to 1% EBITDA. The company targets a 30% CAGR growth for Retailer Shakti over the next 5-10 years.

HEALTHX has launched its JITO brand, a strategic initiative to distribute generic-generic offerings under its own brand. This unique model leverages the company's existing network of 65,000 retail pharmacies without additional capital outlay. JITO is projected to contribute 2-3% of total sales next year, growing to 5% in 24 months and 10% in 2-3 years, with an attractive gross margin of 30% and a contribution margin of 25%. Management believes JITO will significantly boost revenue and gross margin by tapping into new customer segments.

The company emphasized its capital-efficient model, aiming for a negative or 10-day working capital cycle within 3-4 years, with inventory funded by receivables. A major corporate restructuring is underway: SastaSundar Ventures Limited will be renamed Health X Platform Limited, merging SastaSundar and HealthBuddy. Concurrently, Microsec Resources, the NBFC arm, will be demerged and listed separately. The company also executed a buyback of ₹100 crores of capital from Mitsubishi, reflecting its commitment to shareholder value and efficient capital deployment.

To accommodate rapid demand growth, HEALTHX is significantly expanding its warehouse capacity and automating its supply chain. The West Bengal facility's additional 80,000 sq ft capacity, involving a ₹10 crore investment, is slated for completion in the next six months. A new 1 lakh sq ft warehouse in Noida will commence construction next quarter, with a 1.5-year completion timeline. Further expansion projects in Guwahati, Lucknow, and Udaipur are also planned for completion within two years, enhancing the company's distribution network across India.

HEALTHX differentiates itself through its capital efficiency, a no-credit model for retailers, and direct relationships with pharmaceutical companies, enabling procurement without distribution rights. The company's advanced technology, including the upcoming AI-driven SaaS platform 'Retail Air' (to be launched in 3-4 months), and its highly efficient, hygienic, and automated fulfilment centers, serve as significant entry barriers. These factors collectively provide a competitive advantage by ensuring reliable fulfillment, better margins, reduced inventory levels, and transparent pricing for retailers.