YES Securitiesannual report analysis
Medplus Health Services Ltd - Annual Report Observations
2 Sept 2026 · 7 pp · open PDF ↗
- Target
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- At report
- ₹673
- Vs our close
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This is a governance- and disclosure-focused annual report observation note on Medplus Health Services, not a rated research report. It compiles factual data points from the FY26 annual report covering cash flow quality, working capital, shareholding, board composition, related-party transactions, and auditor details.
Thesis
- Cash flow quality is strong: aggregate CFO of Rs. 11.8 bn over FY24-FY26 was ~81% of aggregate EBITDA of Rs. 14.5 bn
- Working capital cycle improved, with cash conversion cycle falling from 91 days in FY24 to 78 days in FY26 driven by lower inventory days
- Debtor days remained steady at one day from FY24 to FY26, consistent with the cash-and-carry retail model
- Other income of Rs. 713.2 mn in FY26 (~1.0% of revenue) did not materially drive earnings
- Contingent liabilities of Rs. 140.6 mn are small at ~0.7% of net worth, largely tax claims
- Board is relatively lean (six members vs NIFTY500 median of nine) but 66.7% independent, with all directors attending at least 80% of FY26 board meetings
Risks
- Promoter pledge stood at 60.7% of promoter holding as of June 2026
- Promoter stake declined marginally from 40.4% (Mar-24) to 40.2% (Jun-26), partly due to ESOP allotments
- Company has paid no dividend since listing, with nil payout from FY24 to FY26
- Two promoter executive directors comprise 33.3% of the six-member board, and the Chairperson is also the MD and CEO
Extraction note: This YES Securities note is an 'Annual Report Observations' checklist-style document, not a standard rated research report — it carries no explicit BUY/SELL rating or target price in the text (rating parameters are boilerplate definitions, not an assigned rating for this stock; t…