Health X Platform Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Sastasundar Ventures reported a strong Q3 FY26, with revenue growing 22% YoY to ₹341 crores and EBIT turning positive at ₹1 crore. Gross margins expanded to 7.6%, and 9M FY26 PAT also turned positive. The company is focused on strategic growth through its Healthbuddy, Retailer Shakti, and new JITO brand, supported by significant investments in technology and warehouse expansion, while navigating working capital challenges from recent GST changes.

Highlights

  • Revenue from operations for Q3 FY26 increased by 22% YoY to ₹341 crores, demonstrating strong top-line growth.

  • Gross margin expanded to 7.6% in Q3 FY26, up from 6% in the corresponding quarter last year and 7.4% in the previous quarter, reflecting improved product mix and operating efficiency.

  • EBIT turned positive at ₹1 crore in Q3 FY26, a significant turnaround from a loss of ₹37 crores in Q3 FY25.

  • For the nine-month period, PAT turned positive at ₹11 crores, a substantial improvement from a loss of ₹151 crores in 9M FY25.

  • The newly launched JITO brand is expected to contribute 2-3% of revenue next year, growing to 10% in 3-4 years with a target gross margin of 30%.

Concerns

  • Working capital is currently 'plugged' for 3-4 years due to the GST change, although management expects it to normalize and become negative in the long term.

  • Initial sales from the JITO brand are currently 'not too much in lakhs of rupees', indicating a ramp-up period is required.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹341 Cr
    YoY +22% QoQ +11%
  • Gross Margin
    7.6%
  • EBITDA Loss
    ₹-14 Cr
  • EBIT
    ₹1 Cr

9M

  • Revenue
    ₹928 Cr
    YoY +15%
  • Gross Profit
    ₹70 Cr
    YoY +30%
  • PAT
    ₹11 Cr

What they filed

Q1 FY27: revenue up 49.7%, net profit down 92.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue274 281 286 298 301 +10%346 +23%374 +31%447 +50%
EBITDA-5 -24 -25 6 -23 −379%-10 +56%-25 +0%-8 −238%
Net profit-155 -38 18 27 -15 +90%0 +101%-13 −174%2 −93%
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 ₹150 Cr Remaining ₹100 crores for technology funded by treasury income for next 2-3 years
    • Building new technology (total planned) ₹150 Cr
    • Building new technology (spent to date) ₹50 Cr
    • Additional warehouse capacity (West Bengal) ₹10 Cr
    • AI-driven SaaS platform (Retail Air) ₹10 Cr
    • Artificial intelligence studio team budget ₹25 Cr
    SastaSundar, as I have already said, we mark Rs. 150 crores to spend for building new technology. Out of that, 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. So, the company's capital and treasury will be intact. And out of the treasury income, we'll be investing for building futuristic success in the platform, including JITO. So, if you find there are some companies which are building their own brand, a brand-specific retail distribution channel, and you see their capital investment, and that kind of company in the company itself will be able to build without any investment. So, that kind of efficiency we bring on table, that absolutely distribution of generic brand is being launched, is being scaled up without any capital outlay. ... West Bengal, we will be investing around Rs. 10 crores for additional capacity of 80,000 square feet warehouse. ... So, this we will be launching in another 3-4 months' time. And we 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. ... we already marked 25 crores per year budget on the artificial intelligence studio team that will be building both for SastaSundar and Retailer Shakti.
  • 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 Mitsubishi Divestment · Closed · Consideration ₹[object Object] (cash)

    Buyback of capital from Mitsubishi as part of strategic capital allocation.

    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 HealthBuddy Limited Merger · Pending regulatory

    To consolidate digital healthcare platform business under a new entity, Health X Platform Limited.

    Sastasundar Ventures Limited shareholders will receive shares in Health X Platform Limited (80% holding distributed) and Microsec Resources (NBFC).

    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. ... 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. So, Health X Platform Limited will have all the business of Sastasundar HealthBuddy Limited, which is a digital healthcare platform business. And then there is a NBFC company, which is called Microsec Resources, that will be demerged and will be listed separately. ... The 80% holding of SastaSundar Ventures into HealthBuddy Limited will be distributed among the shareholders of SastaSundar Ventures. And SastaSundar Ventures Limited shareholder will get another share of NBFC company Microsec Resources.
  • M&A Microsec Resources Divestment · Pending regulatory

    To demerge and list the NBFC business separately.

    Sastasundar Ventures Limited shareholders will receive shares in Health X Platform Limited (80% holding distributed) and Microsec Resources (NBFC).

    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. ... 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. So, Health X Platform Limited will have all the business of Sastasundar HealthBuddy Limited, which is a digital healthcare platform business. And then there is a NBFC company, which is called Microsec Resources, that will be demerged and will be listed separately. ... The 80% holding of SastaSundar Ventures into HealthBuddy Limited will be distributed among the shareholders of SastaSundar Ventures. And SastaSundar Ventures Limited shareholder will get another share of NBFC company Microsec Resources.
  • Liquidity Cash ₹500 Cr Total treasury includes ₹403 crores in SastaSundar Healthbuddy Limited and ₹100 crores in other NBFC business.
    As on 31st March, SastaSundar Healthbuddy Limited is around Rs. 403 crores of treasury. And SastaSundar Ventures, other NBFC business has around Rs. 100 crores treasury. So, the total treasury in the company level is around Rs. 500 crores and SastaSundar Healthbuddy Limited is Rs. 400 crores.

Guidance & targets

Profitability

  • Retailer Shakti EBITDA Profitability · Q4 FY26 · High confidence Break-even
    Retailer Shakti is progressing towards EBITDA break-even by Q4 FY26

    — B.L. Mittal

  • Retailer Shakti EBITDA Profitability · next quarter · High confidence 0.1%
    So, I am firmly hopeful that the next quarter, Retailer Shakti should be a bit of positive. By EBITDA positive, I mean, there will not be loss, 0.1% EBITDA.

    — B.L. Mittal

  • Retailer Shakti EBITDA Profitability · next year · High confidence 1%
    But next year, Retailer Shakti we are hoping to have 1% EBITDA.

    — B.L. Mittal

Operating Leverage

  • Technology Investment Benefits Operating Leverage · beginning FY27 · Medium confidence Measurable operating leverage benefits
    These technology investments are expected to deliver measurable operating leverage benefits beginning FY27 as adoption scales.

    — B.L. Mittal

Healthbuddy Network

  • Healthbuddy Count Healthbuddy Network · by 31st March FY27 · High confidence 400
    By 31st March F27, we should be around 400 Healthbuddies

    — B.L. Mittal

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

    — B.L. Mittal

Retailer Shakti Growth

  • CAGR Retailer Shakti Growth · next 5-10 years · High confidence 30%
    we shall grow by (+) 30% year by year for next 5-10 years. ... then we target to grow by (+) 30% CAGR for 5-10 years.

    — B.L. Mittal

Gross Margin

  • Growth Margin Gross Margin · as we grow more · Medium confidence 9.5-10%
    without even the credit delta, we should be able to reach around 9.5% to 10% growth margin.

    — B.L. Mittal

JITO Sales Contribution

  • Percentage of Sales JITO Sales Contribution · next year · High confidence 2-3%
    next year, we will be doing around 2% to 3%

    — B.L. Mittal

  • Percentage of Sales JITO Sales Contribution · from 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 Sales JITO Sales Contribution · next 2-3 years · High confidence 10%
    next 2-3 years 10%. But we are targeting in next 3-4 around 10% of our revenue from JITO.

    — B.L. Mittal

JITO Gross Margin

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

    — B.L. Mittal

JITO Contribution Margin

  • Contribution Margin JITO Contribution Margin · ongoing · High confidence 25%
    contribution margin around 25%.

    — B.L. Mittal

Working Capital

  • Working Capital Days Working Capital · next 3-4 years · Medium confidence Negative or 10 days
    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 Status Working Capital · next 5 years · Medium confidence Negative working capital company
    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 Business Growth

  • Revenue Growth SastaSundar Business Growth · this year to next year · High confidence 100%
    SastaSundar business, I think from this year to next year, we must be growing around 100%.

    — B.L. Mittal

  • Revenue Level SastaSundar Business Growth · next 12 months · Medium confidence Level at Flipkart handover
    in next 12 months' time, we shall reach at the level where we handed over to Flipkart.

    — B.L. Mittal

HealthBuddy Contribution Margin

  • Contribution Margin HealthBuddy Contribution Margin · next 2-3 years · High confidence 8%
    And from next 2-3 years, this 1%, we expect to rise around 8%.

    — B.L. Mittal

Overall Growth

  • Growth without acquisitions Overall Growth · year by year for next 10 years · High confidence 30%
    we are fully confident that we can grow (+30%) year by year for next 10 years without acquiring any distribution rights.

    — B.L. Mittal

Market context

  • Retailer Shakti EBITDA Profitability · FY27 · High confidence Positive
    expected to deliver sustainable EBITDA positive performance in FY27.

    — B.L. Mittal

  • SastaSundar B2C Contribution Margin Profitability · FY27 · High confidence Positive
    SastaSundar B2C is progressing towards contribution margin positive in FY27

    — B.L. Mittal

  • SastaSundar PAT Profitability · FY28-29 or FY29-30 · Medium confidence Positive
    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

next quarter
Current Already EBITDA positive in January
Target EBITDA positive in Q4 FY26

Why it matters

Indicates progress towards sustainable profitability for a key platform and validates management's guidance.

January month Retailer Shakti is already EBITDA positive. And SastaSundar is already a contribution margin positive. So, I am firmly hopeful that the next quarter, Retailer Shakti should be a bit of positive.

Risks & concerns

  • Working capital blockage due to GST change

    medium

    GST change has plugged working capital for 3-4 years, though management expects it to normalize and become negative in the long term.

    Analyst acknowledged

  • Past automation issues impacting growth

    low

    Automation issues in the Baruipur area previously limited growth, but these have been sorted out, and growth has returned.

    Management acknowledged

Q&A highlights

7 direct
Healthbuddy count, growth, 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... From the transition level, we are cash positive and we will continue to be cash positive.

Clarified the current scale and growth trajectory of Healthbuddy, a key platform, and confirmed its positive contribution margin, addressing concerns about burn rate.

Asked by Amit from Robo Capital

Corporate action: merger and demerger process 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.

Provided a clear timeline and roadmap for the significant corporate restructuring, which will create two focused listed entities.

Asked by Amit from Robo Capital

Impact of GST change on gross margin and working capital Partial
Gross margin right now is not enough to consume. We are not paying any GST. But going forward, our gross margin will enhance... 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.

Addressed the financial implications of the GST change, clarifying that while it impacts working capital, it does not directly affect gross profit or margin calculations.

Asked by Avnish Tiwari from Vaikarya Fund

Comparison of gross margins with industry peers and JITO's impact Direct
Our margin of 7.6%, if you adjust with credit, it is coming 1.5%. ... So, 2% extra, I mean 7.6% to 2% 9.6% that is in line with the industry. As we grow more, I think this credit delta will be replaced by the digital delta. ... JITO, the gross margin will be around 30%, contribution margin around 25%.

Provided a detailed explanation of their competitive gross margins by factoring in their no-credit model and highlighted the significant margin potential from the new JITO brand.

Asked by Avnish Tiwari from Vaikarya Fund

Warehouse expansion plans and timelines Direct
West Bengal will be completed in next six months. And Noida, we will start in next quarter. So, it will take around 1.5 year. Guwahati, partially we have built and then we are building a new building there in Guwahati. That will take another 2 years' time. Lucknow, it will take 2 years. Udaipur, it will take 2 years.

Gave specific timelines for the completion of various warehouse and fulfillment center expansions, indicating significant infrastructure build-out to support future growth.

Asked by Dhairya Trivedi from DJT Investments

Achieving PAT positive status without treasury income Direct
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.

Provided a clear, albeit long-term, roadmap for achieving standalone PAT positivity for both key business segments, addressing investor concerns about reliance on treasury income.

Asked by Deepesh J. Sancheti from Maanya Finance

Entry barriers and competitive differentiators Direct
the first entry barrier is building the relationship with all pharmaceutical companies. ... Second is the building technology. ... Third is bringing the warehouse in the efficiency. ... we give them reach to Tier II cities, even villages where they were not able to reach.

Articulated the company's strategic advantages beyond just pricing, emphasizing relationships, technology, and efficient operations as key barriers to entry for competitors.

Asked by Saket Kapoor from Kapoor & Co.

SastaSundar B2C contribution margin and future growth Direct
As of now yes. And from next 2-3 years, this 1%, we expect to rise around 8%.

Provided a specific target for the future contribution margin of the SastaSundar B2C platform, indicating a clear path to improved profitability for this segment.

Asked by Praneeth, an individual investor

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Detailed narrative

Robust Q3 FY26 Financial Performance

Sastasundar Ventures Limited delivered a strong Q3 FY26, with revenue from operations growing 22% year-on-year to ₹341 crores. Gross margin expanded to 7.6% from 6% in the prior year, driven by an improved product mix and operational efficiencies. The company achieved a significant turnaround in profitability, with EBIT turning positive at ₹1 crore compared to a loss of ₹37 crores in Q3 FY25. For the nine-month period, PAT also turned positive at ₹11 crores, a substantial improvement from a loss of ₹151 crores in 9M FY25.

Strategic Platform Development and Growth Targets

The company's core platforms, Retailer Shakti and SastaSundar B2C, continue to drive growth. Retailer Shakti is already EBITDA positive in January and is targeted to achieve sustainable EBITDA positive performance in FY27, with a goal of 1% EBITDA. SastaSundar B2C is also progressing towards contribution margin positivity in FY27. The Healthbuddy network currently stands at 293 and is projected to grow 50-60% year-on-year, reaching approximately 400 by March 31, FY27.

Launch of JITO Brand and Margin Expansion

Sastasundar has launched its JITO brand, a progressive strategy to distribute generic-generic offerings through its network of 65,000 retail pharmacies. While initial sales are in lakhs, JITO is projected to contribute 2-3% of total revenue next year, growing to 5% in 24 months and 10% in 3-4 years. This brand is expected to significantly enhance gross margins, targeting 30% for JITO products and an overall company gross margin of 9.5-10% with the integration of data and platform revenues.

Capital Efficiency and Strategic Investments

The company emphasizes its capital-efficient model, with total treasury at approximately ₹500 crores. It plans to invest ₹150 crores in building new technology, with ₹50-60 crores already spent and the remaining ₹100 crores to be funded by treasury income over the next 2-3 years. Additionally, ₹10 crores has been invested in an AI-driven SaaS platform called Retail Air, and ₹25 crores per year is budgeted for the AI studio team. These investments are expected to deliver measurable operating leverage benefits from FY27.

Warehouse Expansion and Infrastructure Development

To support rapid growth, Sastasundar is undertaking significant warehouse expansion. An 80,000 square feet additional fulfillment center in West Bengal is expected to be completed within six months, with a ₹10 crore investment. A 1 lakh square feet new warehouse is being built in Noida, expected to take 1.5 years. New facilities are also planned for Guwahati, Lucknow, and Udaipur, each projected for completion within two years.

Corporate Restructuring and Future Outlook

The company plans a significant corporate restructuring, involving a name change to Health X Platform Limited, under which Sastasundar and HealthBuddy will merge. Concurrently, the NBFC business, Microsec Resources, will be demerged and listed separately. This process is expected to be completed in the next financial year, following board approval after FY26 closing. Management also indicated a potential buyback of shares post-merger, having already bought back ₹100 crores from Mitsubishi.

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