QMS Medical Allied Services Q1 FY27 earnings call

QMS Medical Allied Services Limited commenced FY27 with strong financial results, reporting consolidated revenues of INR 56.9 crores, a 22% year-on-year increase. EBITDA grew by 27% to INR 8.3 crores, with the EBITDA margin expanding to 14.6%. Profit After Tax (PAT) also saw a 25% increase, reaching INR 4 crores. Sequentially, the company demonstrated robust growth with revenue up 28%, EBITDA up 41%, and PAT more than doubling by 110% compared to Q4 FY26.

A key milestone for QMS in Q1 FY27 was its successful migration from the SME platform to the main board of NSE on June 18, 2026, reflecting its growth and commitment to becoming a larger healthcare services platform. The Indian healthcare industry continues to offer long-term growth opportunities, driven by rising awareness, increased spending, and digital health adoption. The company notes a growing focus on patient-centric care and adherence, which aligns with its Patient Service Programs (PSP) ecosystem.

The service business, a significant growth engine, saw its PSP segment, including Saarathi Healthcare, generate approximately INR 17 crores in revenue. The company also conducted over 11,497 B2B health camps in Q1 FY27, contributing INR 6.4 crores in revenue. These camps facilitate early screening and diagnosis, complementing PSPs which focus on treatment initiation, counseling, and adherence. The shift towards services is a key driver for gross margin expansion.

The product business maintained healthy traction across healthcare and wellness portfolios, including Q-Devices. Q-Devices contributed approximately INR 3 crores in Q1 FY27, and management targets a 10-15% contribution to total revenue for FY27. A new portfolio of point-of-care products is expected to be introduced by Q3 FY27, with a long-term goal for Q-Devices to contribute 20-25% of total product revenue within three years.

QMS is progressing towards acquiring the remaining stake in Saarathi Healthcare, aiming to complete this by the end of Q2 FY27. This acquisition is expected to strengthen capabilities in disease management and patient support programs. Management emphasized that Saarathi's operations are integrated with QMS, and synergies are realized at the consolidated level, hence individual financials are not disclosed.

Management maintained its overall top-line guidance of approximately INR 220 crores for FY27, despite Q1 being the initial quarter. They also reiterated the target of an 18% EBITDA margin for the full fiscal year. Service revenue visibility for FY27 is projected to be between INR 90-100 crores, with PSP revenue (including additional PSPs) specifically targeted at INR 100-105 crores.

The PSP ecosystem is gaining increasing importance, with pharmaceutical companies allocating more budgets towards patient-centric care. This trend is driven by the limited launch of new innovative products and the emergence of new drug categories like GLP-1, where PSPs become an integral part of marketing campaigns. QMS's proprietary technology platform supports over 100 programs and 1 million patients, providing capabilities for brand tracking, monitoring, analytics, and patient engagement.