QMSMEDI

QMS Medical Allied Services Limited reported an 11% year-on-year revenue growth, reaching INR172.9 crores for FY26. EBITDA stood at INR25.9 crores, and PAT at INR11.9 crores. Over the past three years, the company has demonstrated robust growth with an 18% revenue CAGR, 32% EBITDA CAGR, and 23% PAT CAGR. The company has strategically evolved from a medical device distributor into a comprehensive healthcare solutions platform, serving over 130 institutional clients and 50-plus leading pharmaceutical companies across India.

The services segment, including healthcare screening camps and patient engagement programs (PSPs), now contributes approximately 31% of the total revenue, with a target to double this revenue in FY27 to INR100 crores. In FY26, the company successfully conducted 32,380 healthcare camps, generating INR13 crores, with a target to increase this to INR18-20 crores in FY27. PSPs are highlighted as a critical growth area, helping patients with treatment adherence through counseling, education, and follow-ups, driven by rising chronic diseases and increasing regulatory focus on patient engagement.

The product segment remains the foundation of the business, contributing approximately 69% of the total revenue in FY26, supported by an extensive portfolio of over 900 SKUs and a strong distribution network. This segment typically operates at a 10-12% EBITDA margin. However, the second half of FY26 saw a moderation in product segment revenue due to disruptions and delays in orders and supply of materials, with some orders being pushed to April and May of the next fiscal year.

Profitability in FY26 was impacted by significant, front-loaded investments in people, technology, infrastructure, and platform development, including the integration of Saarathi Healthcare. These strategic investments, particularly for new patient service programs, led to margin compression in FY26. The company's employee costs increased from INR9.6 crores in FY25 to INR15.2 crores in FY26, driven by the hiring of approximately 850 out of a target of 1,000-1,200 new employees for these programs.

For FY27, QMS Medical Allied Services Limited maintains its guidance of INR216 crores in total revenue and expects overall EBITDA margins to be in the range of 18-19%, with a 2% EBITDA growth. The services segment is targeted to double its revenue to approximately INR100 crores, with camps revenue specifically projected to increase from INR13 crores in FY26 to INR18-20 crores in FY27. The company anticipates that the benefits of its FY26 investments will materialize from Q1 FY27 onwards, driving improved profitability and higher stickiness in the service sector.

The company increased its stake in Saarathi Healthcare to 76%, significantly enhancing its capabilities and leadership in the patient engagement ecosystem. Saarathi is recognized as a pioneer in disease management and patient support programs in India. QMS's integrated technology platform currently serves over 1 million patients, enabling real-time tracking, monitoring, and analytics. This technology-driven approach, combined with operational reach and healthcare expertise, is considered a strong competitive advantage, particularly for managing patient support programs and ensuring compliance with regulations like the DPDP Act.