Before diving into numbers, it’s important to understand how API Holdings actually operates.
API Holdings runs a 3-part business model, where each segment has a distinct role:
Supplies medicines to chemists (Ascent) and hospitals (Aknamed)
Procures directly from pharma companies
Focus: scale, supply chain efficiency, and working capital optimization
Consumer-facing platform for medicine delivery and diagnostics
Drives demand and customer acquisition
Historically loss-making due to high delivery and marketing costs
Provides diagnostic services across India
Works with hospitals, labs, and direct consumers
High-margin and the core profit engine of the group
In simple terms:
B2B = Volume engine
B2C = Customer engine
Diagnostics = Profit engine
Particulars | 9M FY25 (₹ Cr) | 9M FY26 (₹ Cr) | Change |
|---|
| Revenue | 4,442 | 5,095 | +14.7% |
|---|
| Gross Margin | 821 | 990 | +20.6% |
|---|
| Opex | 969 | 955 | -1.4% |
|---|
| EBITDA | -148 | 29 | Turnaround |
|---|
| Finance Cost | 394 | 340 | -13.8% |
|---|
| PBT | -566 | -351 | Improving |
|---|
| Metric | 9M FY25 | 9M FY26 |
|---|
| Revenue | ₹2,617 Cr | ₹3,043 Cr |
|---|
| EBITDA | -₹61.5 Cr | -₹15.6 Cr |
|---|
Strong growth with sharp reduction in losses driven by better opex control and improved working capital (54 → 43 days)
| Metric | 9M FY25 | 9M FY26 |
|---|
| Revenue | ₹833 Cr | ₹983 Cr |
|---|
| EBITDA | -₹47 Cr | -₹34 Cr |
|---|
Growth remains healthy while losses narrow; EBITDA margin improves from -5.6% to -3.5%
| Metric | 9M FY25 | 9M FY26 |
|---|
| Revenue | ₹525 Cr | ₹505 Cr |
|---|
| EBITDA | -₹82 Cr | -₹5.5 Cr |
|---|
Revenue declined slightly, but EBITDA recovery is massive due to aggressive cost cuts
| Metric | 9M FY25 | 9M FY26 |
|---|
| Revenue | ₹500 Cr | ₹605 Cr |
|---|
| EBITDA | ₹144 Cr | ₹201 Cr |
|---|
Strongest segment: high growth (+21.1%) and profitability (+38.9% EBITDA growth)
Working capital improved from 50 days to 40 days at group level
B2B working capital reduced from 54 to 43 days
B2C remained efficient at 27 days
Clear signal of tighter control and better cash conversion
Despite strong operational recovery, profitability remains negative.
High finance cost (₹340.2 Cr)
₹1,080 Cr NCD debt still outstanding (after ₹120 Cr repayment)
One-time exceptional cost of ₹5.7 Cr (Wage Code implementation)
Group-level EBITDA turned positive — major milestone
Diagnostics (Thyrocare) continues to drive profits
B2B and B2C margins are steadily improving
Cost discipline is clearly visible across segments
But:
Profitability below PBT is still under pressure due to interest costs
API Holdings is no longer chasing growth at any cost.
It is now transitioning to:
Efficiency-led growth
Stronger unit economics
Better cash flow management
The structure is becoming clearer:
Diagnostics funds the ecosystem
B2B is stabilizing
B2C is improving but still not profitable
Debt reduction.
Until finance costs reduce meaningfully, full profitability will remain out of reach — despite a clear operational turnaround.