From Deep Losses to Profitable Horizon
A deep-dive into India's largest digital healthcare platform — how PharmEasy's parent company turned ₹231 Cr EBITDA losses into a ₹62.5 Cr profit in just one fiscal year.
By UnlistedZone Research Desk | All figures in ₹ Crore
API Holdings Limited is the unlisted parent company of India's most recognizable healthcare technology brands — PharmEasy, Thyrocare, Ascent Health & Wellness Solutions, and Aknamed.
Operating across three distinct verticals — B2B pharmaceutical distribution, B2C healthcare delivery, and diagnostics — it positions itself as India's largest customer-centric digital healthcare platform.
The company does not rely on a single revenue stream. Each business unit serves a fundamentally different customer and earns differently, creating a diversified yet interconnected healthcare ecosystem.
In FY26, the group posted consolidated revenue of ₹6,869 Cr — up 14.3% from ₹6,010 Cr in FY25.
| Segment | Business Model | Revenue Model | Customers | FY26 Revenue | Revenue Share |
|---|---|---|---|---|---|
| B2B — Ascent (Retail) | Technology-enabled pharma distribution | Trade margin on product sales | Retail pharmacies, chemists | ₹4,089 Cr | ~60% |
| B2B — Aknamed (Hospitals) | Hospital supply chain solutions | Distribution margin, hospital supply | Hospitals, clinics, medical centres | ₹674 Cr | ~10% |
| B2C — PharmEasy | Consumer digital healthcare platform | Marketplace commission + logistics | Direct consumers, patients | ₹1,334 Cr | ~19% |
| Diagnostics — Thyrocare | Diagnostics chain | Test fees — B2B & B2C | Hospitals, consumers, corporates | ₹829 Cr | ~12% |
At the group level, FY26 marks a historic inflection.
API Holdings crossed ₹6,869 Cr in consolidated revenue — a 14.3% jump over FY25 — while achieving its first-ever positive EBITDA of ₹62.5 Cr, a complete reversal from the ₹231 Cr loss in FY25 and ₹515 Cr loss in FY24.
API Holdings reported consolidated FY26 revenue of ₹6,869 Cr, growing 14.3% YoY from ₹6,010 Cr in FY25, showing strong expansion across its healthcare businesses.
Gross margin improved significantly to ₹1,363 Cr with margin expansion to 19.8% from 18.6% in FY25, indicating better product mix and improving operating efficiency.
The company achieved a major profitability milestone with EBITDA turning positive at ₹62.5 Cr compared to a loss of ₹231 Cr in FY25. EBITDA margin also improved to 0.9%.
Operating expenses reduced to ₹1,288 Cr despite higher revenue, with opex declining 4.5% YoY. This reflects strong cost optimization and operating leverage across the group.
Finance cost declined sharply to ₹394.7 Cr while working capital days improved to 39 days, strengthening the overall balance sheet and cash flow position of the company.
| Segment | Contribution |
|---|---|
| B2B Ascent | 60% |
| PharmEasy | 19% |
| Thyrocare | 12% |
| Aknamed | 10% |
| Metric (₹ Cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 5,748 | 6,010 | 6,869 |
| Gross Margin% | 17.10% | 18.60% | 19.80% |
| Opex | 1,500 | 1,349 | 1,288 |
| Opex % | 26.10% | 22.40% | 18.70% |
| EBITDA* | -515 | -231 | 62.5 |
| EBITDA % | -9.00% | -3.80% | 0.90% |
| Finance Cost | 1,055 | 490 | 394.7 |
| PBT | -2,300 | -1,035 | -388.4 |
| WC Days | 53 | 40 | 39 |
Note : EBITDA * means Adjusted EBITDA ( excluding ESOP cost and Impairment Losses )
Key Insight
The EBITDA turnaround is driven by a powerful combination:
Gross margins expanded 130bps (18.6% → 19.8%)
Opex as a % of revenue fell 370bps (22.4% → 18.7%)
Opex in absolute terms fell from ₹1,349 Cr to ₹1,288 Cr even as revenue grew by ₹859 Cr — classic operating leverage kicking in.
The B2B segment (Ascent) is the backbone of API Holdings, contributing approximately 60% of group revenue.
It distributes pharmaceutical products to retail pharmacies and chemists across India, with procurement directly from pharma companies. Retailers are also onboarded on the company's proprietary OMS (Order Management System) platform.
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | ₹3,365 Cr | ₹3,554 Cr | ₹4,089 Cr |
| Gross Margin % | 8.90% | 8.50% | 9.00% |
| Opex | ₹414.1 Cr | ₹410.2 Cr | ₹365.4 Cr |
| EBITDA | -₹115.1 Cr | -₹108.9 Cr | ₹1.3 Cr |
| EBITDA Margin | -3.40% | -3.10% | 0.00% |
| Working Capital Days | 53 | 49 | 44 |
Revenue grew ₹535 Cr YoY while opex fell ₹45 Cr — this double-engine efficiency is rare.
Q4'26 EBITDA of ₹16.9 Cr (1.6% margin) is the strongest quarter on record.
Working capital improved from 53 days to 44 days, releasing meaningful cash into the business.
PharmEasy is India's leading consumer healthcare super app, facilitating on-demand, home delivery of prescription medicines, OTC products, and diagnostic services.
The platform is operated by Axelia Solutions Private Limited (an associate company), while API Holdings owns the brand and proprietary technology.
The B2C segment's story in FY26 is one of dramatic margin expansion — gross margins surged from 22.8% to 25.7%, while EBITDA losses more than halved from ₹86.1 Cr to ₹39.4 Cr.
Q4'26 EBITDA reached just -1.5%, approaching breakeven.
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | ₹1,085.6 Cr | ₹1,131.5 Cr | ₹1,334 Cr |
| Gross Margin % | 18.5% | 22.8% | 25.7% |
| Opex | ₹377.3 Cr | ₹344.4 Cr | ₹381.9 Cr |
| EBITDA | -₹177 Cr | -₹86.1 Cr | -₹39.4 Cr |
| EBITDA Margin | -16.3% | -7.6% | -3.0% |
| Working Capital Days | 29 | 29 | 30 |
Watch Out
Despite the turnaround, PharmEasy's opex grew 10.9% YoY (₹344 Cr → ₹382 Cr), indicating increased marketing or delivery spend.
Q3 saw a slight relapse to -2.5% EBITDA before recovering to -1.5% in Q4.
Full-year EBITDA breakeven in FY27 is the critical milestone. The PharmEasy re-IPO narrative depends on this milestone being met.
Aknamed is API's hospital-focused B2B supply chain arm, supplying pharmaceuticals, consumables, and surgical products to hospitals.
It is the only segment to report a revenue decline in FY26 (-2% YoY).
The headline story here is not growth but cost transformation — opex collapsed by 64.1% from ₹141.7 Cr to ₹50.9 Cr, largely due to reversal of Expected Credit Loss (ECL) provisions.
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | ₹763.9 Cr | ₹687.5 Cr | ₹674 Cr |
| Gross Margin % | 8.20% | 6.90% | 5.50% |
| Opex (incl. ECL) | ₹273.4 Cr | ₹141.7 Cr | ₹50.9 Cr |
| EBITDA | -₹211 Cr | -₹94.4 Cr | -₹13.9 Cr |
| EBITDA Margin | -27.60% | -13.70% | -2.10% |
| Working Capital Days | 87 | 76 | 80 |
Aknamed's Q4'26 EBITDA deteriorated to -4.9% (vs -0.4% in Q3), partly due to a jump in opex to ₹17 Cr from ₹9.5 Cr in Q3.
Gross margins have compressed from 8.2% (FY24) to 5.5% (FY26).
Working capital days remain elevated at 80 days — highest across all segments — indicating potential collections risk.
The FY24 ECL provisions of ₹187.5 Cr were a major headwind; their reversal in FY26 is non-recurring.
Thyrocare is the crown jewel of the API Holdings portfolio.
India's leading diagnostics chain, it offers a comprehensive test portfolio across owned and third-party laboratories, collection centres, and phlebotomists.
Unlike every other segment, Thyrocare is not just profitable — it is highly profitable, delivering over 33% EBITDA margins in FY26.
| Metric | FY24 | FY25 | FY26 | YOY change(%) |
|---|---|---|---|---|
| Revenue (₹ Cr) | 571.9 | 687.3 | 829.0 | +20.6% |
| Gross Margin (₹ Cr) | 405.2 | 496.2 | 609.5 | +22.8% |
| Gross Margin % | 70.9% | 72.2% | 73.5% | +1.3 pp |
| EBITDA (₹ Cr) | 153.1 | 209.9 | 279.9 | +33.3% |
| EBITDA Margin % | 26.8% | 30.5% | 33.8% | +3.2 pp |
Thyrocare Investment Case
Thyrocare's Q4'26 EBITDA hit 35.1% — a new quarterly high.
Revenue compounded at ~20% for two consecutive years.
At ₹279.9 Cr EBITDA, Thyrocare alone generates more profit than the entire group's combined losses from B2C and Aknamed (₹53.3 Cr combined).
It Is, effectively, the financial anchor of the API Holdings story.
| Segment | FY26 Revenue | YoY Growth | GM % | FY26 EBITDA | EBITDA % | WC Days |
|---|---|---|---|---|---|---|
| B2B (Ascent) | ₹4,089 Cr | +15.0% | 9.0% | ₹1.3 Cr | 0.0% | 44 |
| B2C (PharmEasy) | ₹1,334 Cr | +17.9% | 25.7% | -₹39.4 Cr | -3.0% | 30 |
| Aknamed | ₹674 Cr | -2.0% | 5.5% | -₹13.9 Cr | -2.1% | 80 |
| Thyrocare | ₹829 Cr | +20.6% | 73.5% | ₹279.9 Cr | 33.8% | — |
| API Group Total | ₹6,869 Cr | +14.3% | 19.8% | ₹62.5 Cr | 0.9% |
The group-level EBITDA of ₹62.5 Cr is a landmark milestone after three years of deep losses:
₹515 Cr loss in FY24
₹231 Cr loss in FY25
₹62.5 Cr EBITDA profit in FY26
PBT remains negative at -₹388 Cr due to legacy finance costs, though improving rapidly from -₹2,300 Cr in FY24.
First EBITDA breakeven achieved at ₹1.3 Cr.
Q4 EBITDA of ₹16.9 Cr (1.6%) shows clear momentum.
Opex fell ₹45 Cr despite revenue growing ₹535 Cr.
Risk: Thin 9% gross margins leave little cushion.
GM expanded to 27% in Q4.
Losses narrowed to -₹5.2 Cr in Q4 vs -₹21.1 Cr in Q1.
FY27 EBITDA breakeven is within reach and could be a major re-rating catalyst for API Holdings' valuation.
Q4 EBITDA at -₹8.4 Cr is a red flag after Q3's near-breakeven at -₹0.7 Cr.
ECL reversals are non-recurring.
GM compression (8.2% → 5.5%) and 80-day WC cycle need urgent strategic attention.
₹279.9 Cr EBITDA at 33.8% margin, growing 33.3% YoY.
Q4 margin at 35.1% — the highest ever.
Thyrocare alone justifies a significant portion of API Holdings' intrinsic value.
The star of the portfolio.
Disclaimer
This article is for informational and educational purposes only and does not constitute investment advice or a solicitation to buy or sell unlisted securities.
Unlisted shares carry higher risk than listed securities. Investors should conduct their own due diligence and consult a SEBI-registered investment advisor before making any investment decisions.
UnlistedZone is an informational platform and does not hold SEBI registration for investment advisory services.
All financial figures sourced from API Holdings Q4FY26 Investor Presentation (May 2026) and converted to ₹ Crore from ₹ Mn.