PharmEasy’s parent company, API Holdings, which is currently trading at around ₹6.25 per share in the unlisted market, reported its Q1 FY27 financial results, showing a significant improvement in profitability and a sharp reduction in losses.
Revenue increased from ₹1,591 crore in Q1 FY26 to ₹1,754 crore in Q1 FY27, representing growth of approximately 10.22% YoY. However, on a QoQ basis, revenue declined by around 1.10%.
Gross Margin and EBITDA Improvement
API Holdings’ gross margin increased from ₹307 crore in Q1 FY26 to ₹375 crore in Q1 FY27, registering a growth of approximately 22% YoY. On a QoQ basis, gross margin remained broadly flat, increasing by around 0.64%.
On the operating front, the company continued its recovery. API Holdings reported an EBITDA of ₹39 crore in Q1 FY27, compared with an EBITDA loss of ₹12 crore in Q1 FY26. The company had reported an EBITDA profit of approximately ₹33 crore in the previous quarter.
The improvement was also visible at the profit-before-tax level. PBT improved from a loss of ₹145 crore in Q1 FY26 to a loss of ₹29 crore in Q1 FY27.
One of the key factors behind this improvement was the sharp reduction in finance costs. Finance costs declined from approximately ₹119 crore in Q1 FY26 to ₹55 crore in Q1 FY27.
Overall, API Holdings’ EBITDA margin improved from -0.80% in Q1 FY26 to 2.20% in Q1 FY27, highlighting the company’s continued progress toward profitability.
API Holdings Becomes Debt-Free After Thyrocare Stake Sale
A major development for API Holdings recently was the sale of a 9.9% stake in Thyrocare, following which the company repaid approximately ₹1,050 crore of debt.
The debt had been added to PharmEasy’s balance sheet following its acquisition of Thyrocare for approximately ₹4,546 crore.To finance the acquisition, the company had taken a loan of approximately ₹2,280 crore from Goldman Sachs at an interest rate of around 18%. The high-cost debt had become a significant burden on the company’s balance sheet and contributed to its finance costs.
With the sale of part of its Thyrocare stake and repayment of the debt, API Holdings has now significantly reduced its financial burden and moved toward a debt-free balance sheet.This reduction in finance costs is already visible in the Q1 FY27 results and could provide further support to profitability going forward.
API Holdings Q1 FY27 Business Segment Performance
In Q1 FY27, API Holdings reported growth across its major business segments, while several businesses continued to show improvement in operating profitability.
B2B Segment
The B2B segment reported revenue of ₹1,005 crore in Q1 FY27, representing an increase of approximately 8.18% YoY. However, revenue declined by around 3.83% QoQ.
The segment reported a gross profit of ₹90 crore, compared with ₹80 crore in Q1 FY26, representing growth of approximately 13% YoY. On a QoQ basis, gross profit declined by around 11%.
The biggest improvement came at the EBITDA level. The B2B segment reported an EBITDA of ₹0.7 crore in Q1 FY27, compared with an EBITDA loss of approximately ₹17 crore in Q1 FY26.
This indicates a significant improvement in the operating performance of the segment.
Pharmacy – B2C Segment
The Pharmacy B2C segment reported revenue of ₹347 crore in Q1 FY27, an increase of approximately 10.37% YoY. On a QoQ basis, revenue declined marginally by around 0.77%.
The segment reported an EBITDA loss of ₹17 crore, compared with an EBITDA loss of ₹21 crore in Q1 FY26.
Although the segment remained loss-making, it showed an improvement compared with the previous year. However, on a QoQ basis, EBITDA deteriorated from a loss of approximately ₹5.2 crore in the previous quarter to a loss of ₹17 crore in Q1 FY27.
Aknamed – B2B Segment
Aknamed, the B2B healthcare services business, reported revenue of ₹176 crore in Q1 FY27, representing growth of approximately 5.63% YoY and 4.31% QoQ.
The segment reported an EBITDA of ₹0.7 crore, turning positive during the quarter. This compares with an EBITDA loss of approximately ₹2.5 crore in Q1 FY26 and an EBITDA loss of ₹8.4 crore in the previous quarter.
The turnaround in Aknamed’s EBITDA is another positive development for API Holdings as the company continues to improve the profitability of its different businesses.
Thyrocare
Thyrocare, the diagnostic services subsidiary of API Holdings, reported revenue of approximately ₹240 crore in Q1 FY27, representing an increase of 24% YoY and 7.42% QoQ.
The company reported EBITDA of approximately ₹77 crore, representing growth of around 21% YoY. On a QoQ basis, EBITDA declined by approximately 1.57%.Thyrocare continued to maintain a strong operating margin, with an EBITDA margin of approximately 32.20%.Thyrocare remains an important contributor to API Holdings’ overall financial performance.
Thyrocare’s Contribution to API Holdings’ Growth
Thyrocare contributed approximately 29% of API Holdings’ YoY revenue growth and 27% of its EBITDA improvement in Q1 FY27.
However, the improvement in API Holdings’ financial performance was not solely driven by Thyrocare. The company’s other businesses, particularly the B2B segment and Aknamed, also showed meaningful improvement in operating profitability. The continued reduction in losses across the business, combined with lower finance costs following the debt repayment, could be an important turning point for API Holdings.