QMS Medical Allied Services Limited

QMS Medical Allied Services reported a strong financial performance for Q2 FY26, with net revenue from operations reaching ₹44.7 Crores, marking a 20% year-on-year growth. EBITDA for the quarter stood at ₹6.9 Crores, translating to a 15.5% margin, while PAT was ₹3.6 Crores with an 8% margin. For the first half of FY26, net revenue was ₹91.2 Crores, a 35% year-on-year increase, with EBITDA at ₹13.4 Crores (14.7% margin) and PAT at ₹6.7 Crores (7.4% margin). These results underscore the resilience of the company's operational model across both its service and product verticals.

The product business maintained its positive momentum, driven by consistent demand in healthcare and wellness categories, including the flagship Q-Devices brand. Its footprint is expanding through strong distribution partnerships and presence across e-commerce platforms and government portals. The service business, a key strategic driver, benefited from deeper engagement with leading pharma clients and increased adoption of structured patient support programs across various therapy areas. The successful integration of Saarathi Healthcare, where QMS holds a 76% stake, has significantly enhanced capabilities and expanded reach within India's patient service ecosystem.

In H1 FY2026, QMS conducted over 16,200 B2B healthcare camps, demonstrating robust field operations and upgraded back-end processes. The company currently operates with 120 field officers covering 5,000 postal codes, equipped with diabetic equipment and HbA1c strip machines. These officers conduct approximately 2,500 to 3,000 camps per month, with an expectation to close FY26 with around 33,000 camps. The company also leverages a network of about 900 freelance dietitians to support its services.

EBITDA margins experienced a decline in Q2 FY26, attributed to pricing rationalization, including larger discounts offered to increase volume, and significant investments in infrastructure and personnel. Management expects margins to stabilize and improve from next year onwards as these investments begin to yield results. The company anticipates product business growth of 10-12%, aligning with the broader pharma industry, while patient service programs are projected to grow at approximately 25%.

QMS aims to become a one-stop solution for pre-diagnosis, early diagnosis, point-of-care, and marketing activities for pharmaceutical companies, including second and third-tier players. The company also seeks to be a leader in launching brands with multinational companies, aiding market access and geographic penetration. Over the next 5-10 years, QMS plans to explore international expansion, starting with Asia-Pacific markets like Vietnam and Cambodia, leveraging its expertise and data-driven insights. Key capabilities being built include talent acquisition and retention, infrastructure development, and innovation in health tech, particularly integrating AI into analytics and CRM.

QMS has successfully integrated Saarathi Healthcare, increasing its stake to 76%. This acquisition is a strategic move to strengthen the company's service vertical and expand its presence in the patient service ecosystem. While the acquisition was completed recently, the financial impact of the additional 26% stake will only be reflected in the company's financial results from the next quarter (Q3 FY26). This integration is expected to enhance capabilities and broaden the company's reach within India's evolving healthcare landscape.