Jeena Sikho — Q1 FY26 earnings call

Call held 18 Aug 2025

Management summary

Jeena Sikho reported a strong Q1 FY26, driven by robust growth in both services and products, particularly private Panchakarma. The company is aggressively expanding its OTC product portfolio and bed capacity, leveraging partnerships with Ayurvedic colleges. Management expressed high confidence in achieving ambitious growth and margin targets, while also focusing on technology integration and patient-centric care.

Highlights

  • Revenue from operations in Q1 FY26 was INR174 crores, up 74% YoY and 25% QoQ.

  • Profit after tax (PAT) was INR51 crore, an increase of 218% YoY and 88% QoQ, with an EPS of INR4.13.

  • EBITDA reached INR79 crores, showing 220% YoY and 69% QoQ growth, with a margin of 45%.

  • Total bed capacity expanded to 2,570 beds from 2,180 operational beds, with a target of 2,850-3,000 beds by FY26 end.

  • OPD volumes increased by 70% YoY, and IPD volumes grew by over 45% YoY.

  • The company aims for INR700 crores turnover in FY26 and INR500 crores from the new OTC segment in 1.5-2 years, targeting a 20-25% PAT margin.

Key financials

  1. Revenue ₹174 Cr +74%YoY
  2. PAT ₹51 Cr +218%YoY
  3. EPS ₹4.13
  4. EBITDA ₹79 Cr +220%YoY
  5. EBITDA Margin 45%
  6. Operating Expense ₹77.14 Cr -2.9%QoQ

What they filed

Q1 FY27: revenue up 28.7%, net profit up 29.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue114 116 139 174 190 +67%222 +91%216 +55%224 +29%
EBITDA40 30 46 79 92 +130%101 +237%78 +70%92 +16%
Net profit27 13 25 51 59 +119%67 +415%45 +80%66 +29%
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

  • Medicine Sales
    ₹80 Cr Revenue46% Contribution
  • Private Panchkarma Sales
    ₹78 Cr Revenue
  • Government Panchkarma Sales
    ₹15 Cr Revenue
  • Services Segment
    54% Contribution

Guidance & targets

Revenue

  • Turnover Revenue · FY26 · High confidence INR700 crores
    I am planning a turnover of INR700 crores this year at the same run rate, which is running at a run rate of INR60 crores.

    — Manish Grover

  • OTC Turnover Revenue · 1.5 to 2 years · High confidence INR500 crores
    In OTC, I am expecting a turnover of INR500 crores in 1.5 to 2 years.

    — Manish Grover

Profitability

  • PAT Margin Profitability · Ongoing · High confidence 20%-25%
    I want to maintain the profit for 20% to 25%.

    — Manish Grover

  • OTC Business Margin Profitability · Ongoing · High confidence 20%
    And I will maintain a margin of 20% in this also.

    — Manish Grover

Capacity

  • Bed Count Capacity · By 31st March (FY26) · High confidence 2,850-3,000 beds
    I have a plan to add 2850, 3000 beds by 31st March.

    — Manish Grover

  • Bed Count Capacity · 3 to 5 years · High confidence 7,000-10,000 beds
    My target is 7000 to 10,000 bed.

    — Manish Grover

Product Launches

  • Number of OTC Products Product Launches · Before 31st March (FY26) · High confidence 6-7 products
    Sir, in this year, I will launch six to seven products before 31st March and in the next year, I will launch 15 to 20 products...

    — Manish Grover

  • Number of OTC Products Product Launches · Next year (FY27) · High confidence 15-20 products

    — Manish Grover

Risks & concerns

  • Government payment delays impacting receivables

    medium

    Reduced government business to 8% due to payment delays, expecting payment circle to improve in 2-3 months with new portal.

    Management acknowledged

  • Data leakage and patient privacy with external software

    low

    Addressed by developing in-house ERP, call center, and data storage to prevent data leakage.

    Management acknowledged

  • Quality compromise in Ayurvedic products

    low

    Emphasized rigorous testing, clinical trials, in-house packing supervision, and written agreements with manufacturers to ensure quality.

    Analyst acknowledged

  • Patient retention/convenience in Ayurvedic hospitals

    low

    Patients leave for personal reasons (anniversaries, birthdays) as no invasive treatments keep them tied to the hospital, unlike allopathy.

    Management acknowledged

Areas of evasion (1)

  • Specific breakdown of ESOP cost beyond '50 to 60 lakhs intrinsic value calculation' and 'minor impact'.

Q&A highlights

3 direct
Expansion strategy and tech-enabled wellness platform Direct
So, now we have enabled the entire Salesforce software in our company. We have changed our entire CRM. And by working on the AI chatbot, we are making some such small apps.

Reveals the company's strategic direction towards technology integration and new product development in the Ayurvedic wellness space.

Asked by Sucrit D. Patil

Sustainability of EBITDA margin and traction of new Ayurvedic products Direct
Number one, we launched the product exactly 15 days, 17 days ago and what we did in the first one hour, we got about 2,200 orders. And in four days, our first lot of product was completely over.

Provides early indicators of success for new product launches and explains the strategy for maintaining margins through social initiatives and reduced ad spend.

Asked by Akshay

Government receivables and statutory auditor change Direct
Sir, right now Grant Thornton has been appointed as a statutory auditor. From the second quarter onwards, we are signing new alliances.

Asked by Divya Agarwal

2 min read 7 chapters

Detailed narrative

Strong Q1 FY26 Financial Performance

Jeena Sikho reported robust Q1 FY26 results, with revenue from operations reaching INR174 crores, marking a 74% year-on-year and 25% quarter-on-quarter growth. Profit after tax (PAT) surged to INR51 crore, an increase of 218% YoY and 88% QoQ, leading to an EPS of INR4.13. EBITDA also saw significant growth, hitting INR79 crores (up 220% YoY, 69% QoQ) with a healthy margin of 45%.

Strategic Expansion into OTC Market

The company is aggressively entering the Over-The-Counter (OTC) market, launching its 'PET Liver Spleen Shuddi Kit' on August 22nd. Initial response was strong, with 2,200 orders in the first hour. Management targets INR500 crores in OTC turnover within 1.5 to 2 years, expecting to launch 6-7 products by March 2026 and 15-20 products next year, aiming for a 20% margin in this segment.

Hospital Bed Capacity and Occupancy Growth

Jeena Sikho expanded its total bed capacity to 2,570 beds, up from 2,180 operational beds. The company aims to further increase this to 2,850-3,000 beds by March 31, 2026, and a long-term target of 7,000-10,000 beds in 3-5 years. Occupancy rates for existing 1600 beds stood at 80%, while the overall occupancy on the expanded 2180 beds was 57%.

Partnerships with Ayurvedic Colleges

To facilitate rapid expansion without significant capital expenditure, Jeena Sikho is partnering with Ayurvedic colleges. They have already tied up with Saraswati College (Mohali), Sanskriti University (Vrindavan), and a 100-bed hospital in Aurangabad. These partnerships involve revenue sharing (e.g., 6-7% revenue share and rent) and provide access to trained doctors, reducing operational and training costs.

Government Business and Receivables Management

The company has strategically reduced its exposure to government business, which now accounts for only 8% of revenue, down from 25% previously. This shift is primarily due to payment delays, with current government receivables around INR70 crores. Management expects payment cycles to improve within 2-3 months with the launch of new government portals.

Technology Integration and Quality Control

Jeena Sikho is investing in technology, implementing Salesforce for CRM, developing AI chatbots for patient apps (BP, sugar, depression/anxiety), and exploring new blood-based biopsy technologies for cancer detection. For OTC products, strict quality control is maintained through batch testing, clinical trials, in-house packing supervision, and written agreements with manufacturers.

Ayurveda Philosophy and Patient-Centric Approach

The company emphasizes its mission to promote Ayurveda as a primary healthcare choice, focusing on root cause treatment and prevention through lifestyle and diet. They offer 10% free treatment to poor patients in their hospitals, which also serves as a word-of-mouth marketing strategy, contributing to reduced overall ad expenses.

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