Q1 2027 Health X Platform Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 58% year-on-year to INR440 crores, with a 16% quarter-on-quarter increase, marking the best quarter in company history.
- Gross profit increased 64% year-on-year to INR34 crores, with gross margin improving to 7.8% from 7.3% in Q4 FY26.
- EBITDA loss narrowed significantly to INR15 crores from INR20 crores in Q4 FY26, and the company reported a PAT profit of INR2 crores, a major improvement from the INR13 crore loss in the prior quarter.
- Retailer Shakti and Sasta Sundar both delivered strong growth of 48% and 44% year-on-year, respectively, with 69.4% of Retailer Shakti business coming from orders above INR2,500.
- The company is expanding into new geographies like Orissa, Bihar, and Jharkhand, with 67% of Retailer Shakti and 78% of Sasta Sundar business coming from Tier 2 and Tier 3 markets, demonstrating scalability.
- JITO, the private label initiative, is gaining traction with revenue growing from INR25 lakhs in Q4 FY26 to INR79 lakhs in Q1 FY27, offering gross margins above 50%.
- The company maintains a capital-efficient model with a working capital cycle of approximately 28 days (8% of revenue), and more than 95% of purchases are sourced directly from pharmaceutical companies.
- Management expects to achieve positive EBITDA for Retailer Shakti by Q3 FY27 and anticipates FY27 to be the best year in the company's history.
- EBITDA remained negative at INR14.9 crores due to higher employee and other operating expenses, reflecting continued investment ahead of scale.
- PAT profitability of INR2 crores was significantly below the INR26 crores reported in Q1 FY26, indicating a year-on-year decline in net income.
- The company expects to remain EBITDA negative for the next 2-3 years, with management stating that EBITDA is not a priority, which may concern investors focused on near-term profitability.
- Sasta Sundar (B2C business) continues to incur losses, with management indicating that building this business requires spending around 15% of revenue, contributing to the overall burn.
- The company is unable to provide a clear segment-wise P&L breakdown for Retailer Shakti and Sasta Sundar due to integrated operations, limiting transparency for investors.
- JITO's contribution to revenue is still minimal (INR79 lakhs in Q1 FY27), and management declined to provide specific guidance on its future revenue share, creating uncertainty.
- The company's market share in its core West Bengal market is only around 3%, and the average wallet share with its 75,000 registered pharmacies is just 2%, indicating significant room for improvement but also competitive challenges.
Ladies and Gentlemen, good day and welcome to Health X Platform Limited Q1 and FY27 Earnings Conference Call hosted by Go India Advisors. As a reminder, all participant line will be in the listen-only mode and there will be an opportunity for you to ask question after the presentation conclude.
(Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Ms. Soumya from Go India Advisor.
Thank you and over to you Soumya.
Hi everyone, I welcome you all to Health X Platform Limited Q1 FY27 earnings con call. Please note that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. We have on call today Mr. B.L. Mittal, the Managing Director and CEO and Mr. Lokesh Agarwal, the CFO. I now request the management to proceed with the opening remarks. Post that, we'll open the floor for Q&A.
Thank you and over to you sir.
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