Health X Platform Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

HEALTHX (formerly Sastasundar Ventures Limited) delivered a strong Q3 FY26, marked by a 22% YoY revenue growth to ₹341 crores and significant profitability improvements, including positive EBIT and 9-month PAT. The company is undergoing a corporate restructuring to become Health X Platform Limited, merging its healthcare businesses and demerging its NBFC. Strategic investments in technology, warehouse expansion, and the new JITO brand are key drivers for future growth, with Retailer Shakti already achieving EBITDA positivity.

Highlights

  • Revenue from operations increased to ₹341 crores, a 22% YoY growth, driven by sustained traction across B2C and B2B businesses.

  • Gross profit increased by 55% YoY, with gross margin expanding to 7.6% from 6% in the prior year, reflecting improved product mix and operating efficiency.

  • EBITDA losses significantly narrowed to negative ₹14 crores, a 41% improvement YoY, and EBIT turned positive at ₹1 crore compared to a loss of ₹37 crores in Q3 FY25.

  • The company reported a positive PAT of ₹11 crores for the 9-month FY26 period, a significant turnaround from a loss of ₹151 crores in 9-month FY25.

  • Retailer Shakti, the B2B platform, achieved EBITDA positivity in January 2026, ahead of its Q4 FY26 target, and SastaSundar B2C is already contribution margin positive.

  • Launched the JITO brand for generic-generic offerings, targeting 30% gross margin and significant revenue contribution in the coming years.

Concerns

  • The GST rate change impacted working capital, which is now 'plugged for some 3-4 years' time' due to higher cost inventory consumption.

  • Growth in Retailer Shakti was limited earlier in the year due to automation issues in the Baruipur facility, though this has since been sorted out.

Key financials

  1. Revenue from Operations ₹341 Cr +22%YoY
  2. Gross Margin 7.6%
  3. EBITDA Losses ₹-14 Cr
  4. EBIT ₹1 Cr
  5. 9-month Revenue ₹928 Cr +15%YoY
  6. 9-month PAT ₹11 Cr

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.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Investment in Retail Air (AI-driven SaaS platform) ₹10 Cr
    • Budget for Artificial Intelligence studio team ₹25 Cr
    • Additional capacity for West Bengal warehouse (80,000 sq ft) ₹10 Cr
    • New technology building (already spent) ₹50 Cr
    • New technology building (remaining to be spent) ₹100 Cr
    I have invested around Rs. 10 crores into this Retail Air and this will be available without any cost to all the retailers who are attached with the Retailer Shakti platform. (B.L. Mittal, page 13); As I have said that we already marked 25 crores per year budget on the artificial intelligence studio team that will be building both for SastaSundar and Retailer Shakti. (B.L. Mittal, page 20); The additional investment in building new warehouses, we are still working at what kind of facility we require. But I can tell you the West Bengal where we have placed the order. So, West Bengal, we will be investing around Rs. 10 crores for additional capacity of 80,000 square feet warehouse. (B.L. Mittal, page 20); around Rs. 50 crores to 60 crores we have already spent. So, another 100 crores that will be funded to the treasury income for next 2-3 years' timeframe. (B.L. Mittal, page 12)
  • Buyback ₹100 Cr
    Yes, why not Abhishek? As you have demonstrated the current year, we bought back capital of Mitsubishi from the same thought. So, Rs. 100 crores we paid to Mitsubishi.
  • M&A SastaSundar and HealthBuddy Merger · Announced

    Consolidate healthcare platform business under one entity.

    SastaSundar Ventures Limited will change name to Health X Platform Limited, which will house the merged SastaSundar and HealthBuddy businesses.

    The post-merger, the SastaSundar Ventures Limited, first thing is that we are changing the name. So, next 10 days, the name will be changed from SastaSundar Ventures Limited to Health X Platform Limited. So, in Health X Platform Limited, this healthcare company, SastaSundar and HealthBuddy will be merged.
  • M&A Microsec Resources Divestment · Announced

    Separate listing for NBFC business.

    Microsec Resources, an NBFC company, will be demerged and listed separately.

    And then there is a NBFC company, which is called Microsec Resources, that will be demerged and will be listed separately.
  • Liquidity Cash ₹500 Cr Total treasury at company level is ₹500 crores, comprising ₹403 crores from SastaSundar Healthbuddy Limited and ₹100 crores from SastaSundar Ventures (other NBFC business).
    So, the total treasury in the company level is around Rs. 500 crores and SastaSundar Healthbuddy Limited is Rs. 400 crores.

Guidance & targets

Healthbuddy

  • Healthbuddy Count Healthbuddy · by 31st March F27 · High confidence around 400
    By 31st March F27, we should be around 400 Healthbuddies and then we grow continuously.

    — B.L. Mittal

  • Healthbuddy Growth Rate Healthbuddy · year by year · High confidence 50% to 60%
    we will grow around 50% to 60% year by year.

    — B.L. Mittal

Retailer Shakti

  • EBITDA Positivity Retailer Shakti · Q4 FY26 and FY27 · High confidence break-even by Q4 FY26, sustainable positive in FY27
    Retailer Shakti is progressing towards EBITDA break-even by Q4 FY26 and expected to deliver sustainable EBITDA positive performance in FY27.

    — B.L. Mittal

  • EBITDA Margin Retailer Shakti · next year · High confidence 0.1% EBITDA (next year), 1% EBITDA (next year)
    By EBITDA positive, I mean, there will not be loss, 0.1% EBITDA. But next year, Retailer Shakti we are hoping to have 1% EBITDA.

    — B.L. Mittal

  • Growth Margin Retailer Shakti · as we grow · Medium confidence 9.5% to 10%
    So, taking together without even the credit delta, we should be able to reach around 9.5% to 10% growth margin.

    — B.L. Mittal

Overall Revenue Growth

  • CAGR Overall Revenue Growth · 5-10 years · High confidence 30%
    Internally we have planned that we shall grow by (+) 30% year by year for next 5-10 years.

    — B.L. Mittal

JITO Sales Contribution

  • Percentage of total sales JITO Sales Contribution · next year · High confidence 2% to 3%
    I think next year, we will be doing around 2% to 3% because initially one and two years takes a lot of time for building distribution, for building procurement capabilities, building brand, and then it enhances rapidly.

    — B.L. Mittal

  • Percentage of total sales JITO Sales Contribution · 24 months · High confidence 5%
    From 24 months, we must be reaching around 5% of the sales by JITO and it will rise.

    — B.L. Mittal

  • Percentage of total sales JITO Sales Contribution · next 3-4 years · High confidence 10%
    But we are targeting in next 3-4 around 10% of our revenue from JITO.

    — B.L. Mittal

JITO

  • Gross Margin JITO · ongoing · High confidence 30%
    JITO, the gross margin will be around 30%.

    — B.L. Mittal

  • Contribution Margin JITO · ongoing · High confidence 25%
    In JITO, we will be having a gross margin 30%, contribution margin around 25%.

    — B.L. Mittal

Working Capital

  • Working Capital Days Working Capital · next 3-4 years · Medium confidence almost negative or 10 days
    for next 3-4 years, the working capital in our business should be almost negative or 10 days working capital, you can say, because we are building a model whereby through our technology, our inventory will be around 21 to 22 days and that will be funded by our receivable.

    — B.L. Mittal

  • Working Capital Days Working Capital · next 5 years · Medium confidence 22-23 days
    And going forward in the next 5 years, we think that we will be a negative working capital company because our inventory will be at 22-23 days' time, which will be funded by pharmaceutical companies by giving similar kind of credit.

    — B.L. Mittal

SastaSundar App

  • Contribution Margin SastaSundar App · next 2-3 years · High confidence 8%

    From 1% today

    As of now yes. And from next 2-3 years, this 1%, we expect to rise around 8%.

    — B.L. Mittal

Warehouse Completion

  • West Bengal Warehouse Warehouse Completion · next six months · High confidence completed
    The additional capacity, we have started in West Bengal. First, West Bengal will be completed in next six months.

    — B.L. Mittal

  • Noida Warehouse Warehouse Completion · next quarter · High confidence start in next quarter, 1.5 years for completion
    And Noida, we will start in next quarter. So, it will take around 1.5 year.

    — B.L. Mittal

  • Guwahati Warehouse Warehouse Completion · 2 years · High confidence 2 years
    Guwahati, partially we have built and then we are building a new building there in Guwahati. That will take another 2 years' time.

    — B.L. Mittal

  • Lucknow Warehouse Warehouse Completion · 2 years · High confidence 2 years
    Lucknow, it will take 2 years.

    — B.L. Mittal

  • Udaipur Warehouse Warehouse Completion · 2 years · High confidence 2 years
    Udaipur, it will take 2 years.

    — B.L. Mittal

Retail Air SaaS Platform

  • Launch Timeline Retail Air SaaS Platform · within 3-4 months · High confidence in another 3-4 months' time
    So, this we will be launching in another 3-4 months' time.

    — B.L. Mittal

Market context

  • Contribution Margin Positivity SastaSundar B2C · FY27 · High confidence positive
    SastaSundar B2C is progressing towards contribution margin positive in FY27 with operating leverage improved as order density and customer acquisition efficiency strengthened.

    — B.L. Mittal

  • PAT Positivity SastaSundar B2C · 2028-29 or 2029-30 · Medium confidence positive
    And SastaSundar, we aim to be PAT positive sometimes in year '28-29 or '29-'30.

    — B.L. Mittal

What to watch in Q4 FY26

Retailer Shakti EBITDA Positivity

Q4 FY26 and FY27
Current Already EBITDA positive in January 2026
Target Sustainable EBITDA positive performance in FY27

Why it matters

Verifying sustained profitability in the B2B segment is crucial for the company's overall financial health and path to PAT positivity.

Retailer Shakti is progressing towards EBITDA break-even by Q4 FY26 and expected to deliver sustainable EBITDA positive performance in FY27.

Risks & concerns

  • GST change impact on working capital

    medium

    The decrease in GST rates from 12% to 5% led to higher cost inventory consumption, plugging working capital for 3-4 years.

    Analyst acknowledged

  • Growth limitations due to automation issues

    low

    Earlier in the year, growth was limited due to automation issues in the Baruipur facility, but this has been sorted out, and growth has returned.

    Management resolved

Q&A highlights

7 direct
Healthbuddy count and burn rate Direct
Right now, there are 293 Healthbuddies on the SastaSundar platform and we will grow around 50% to 60% year by year. By 31st March F27, we should be around 400 Healthbuddies... The Healthbuddy model itself is a positive at contribution level. We do not burn even a single penny out of the delivery.

Clarifies the unit economics and growth trajectory of the Healthbuddy platform, indicating it's not a cash-burning segment.

Asked by Amit from Robo Capital

Corporate action (merger/demerger) timeline and structure Direct
after closing of this account for this Financial Year 2026, we will approach to our Board of Directors to grant the merger approval. And subject to that merger approval, we must be completing the merger and demerger process in the next financial year. ... The post-merger, the SastaSundar Ventures Limited, first thing is that we are changing the name. So, next 10 days, the name will be changed from SastaSundar Ventures Limited to Health X Platform Limited. So, in Health X Platform Limited, this healthcare company, SastaSundar and HealthBuddy will be merged... And then there is a NBFC company, which is called Microsec Resources, that will be demerged and will be listed separately.

Provides critical details on the upcoming corporate restructuring, including name change, mergers, demergers, and their timelines, which is a major event for shareholders.

Asked by Amit from Robo Capital

Impact of GST change on gross margin and working capital Direct
The only impact you have was on working capital, not on the gross profit or margin, because revenue and cost of goods both are excluding the GST, right? Yes. So, there is no effect on that, except that our working capital is plugged for some 3-4 years' time.

Addresses a potential headwind from regulatory changes, clarifying that while it impacts working capital, it does not affect gross profit or margin.

Asked by Avnish Tiwari from Vaikarya Fund

Comparison of gross margins with competitors in pharma distribution Direct
But you have to compare after discounting the credit part. So, we don't give credit. Our margin of 7.6%, if you adjust with credit, it is coming 1.5%. If you see the larger distribution companies, their credit is higher 60 days. So, 60 days credit means 2%. So, our credit is zero. So, 2% extra, I mean 7.6% to 2% 9.6% that is in line with the industry.

Explains the company's competitive advantage in gross margin by highlighting its no-credit model, which effectively yields a higher margin compared to credit-based distributors.

Asked by Avnish Tiwari from Vaikarya Fund

Bottlenecks in growth due to no-credit policy for retailers Direct
Basically, like you mentioned, we don't give credit. Doesn't this create a bottleneck during expansion, the expansion that we are currently doing? Because I'm assuming the distributor here give a decent amount of credit to the pharmacies. So, if we are going with no credit, does not this create a bottleneck in terms of growth and expansion? We don't find any bottleneck, rather, this is a USP.

Addresses a potential concern about the scalability of their no-credit model, with management asserting it's a unique selling proposition (USP) that has led to market leadership.

Asked by Aryamann from Prudent Investment Manager

PAT positive timeline without treasury income Partial
You guided for PAT positive next year supported by treasury income. How should investors think about core operating PAT excluding treasury? So, PAT positive, there are two components. One part is the Retailer Shakti and one part is the SastaSundar. So, Retailer Shakti, the next year we will be PAT positive for which we are working. And SastaSundar, we aim to be PAT positive sometimes in year '28-29 or '29-'30.

Clarifies the separate profitability timelines for the B2B (Retailer Shakti) and B2C (SastaSundar) segments, indicating a longer horizon for overall PAT without treasury income.

Asked by Dipesh J. Sancheti from Maanya Finance

Differentiators from competitors like PharmEasy, 1mg, and other distributors Direct
our core operating capabilities, one key differentiator is our efficiency. So, we are the most efficient in terms of putting capital. We build the entire IPR business there by just putting 83 crores... The first entry barrier is building the relationship with all pharmaceutical companies... Second is the building technology... And third is bringing the warehouse in the efficiency.

Highlights the company's unique value proposition, capital efficiency, direct pharmaceutical relationships, technology, and efficient warehousing as key competitive advantages and entry barriers.

Asked by Athar Syed from SmartSync Services

Conflict with pharmaceutical companies due to JITO generic brand Direct
When you are supplying your own trade generic JITO to pharmacies, wouldn't that be a conflict with your pharmaceutical or marketing companies who are supplying medicines to you because it will undercut them? ...we don't find any conflict between JITO, generic-generic, and branded medicine. Both these are two segments. There are two separate kinds of customers.

Addresses a potential conflict of interest with existing suppliers by explaining the market segmentation strategy for JITO, targeting new customers and different segments.

Asked by Avnish Tiwari from Vaikarya Fund

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance and Turnaround

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.

Strategic Focus on Technology and Growth Infrastructure

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.

Healthbuddy and Retailer Shakti Outlook

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.

JITO Brand Launch and Market Strategy

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.

Capital Efficiency and Corporate Restructuring

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.

Warehouse Expansion and Supply Chain Automation

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.

Competitive Differentiators and Entry Barriers

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.

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

More Healthcare earnings calls