QMS Medical Allied Services Limited

Q&A

Q: What was the Q-Devices revenue in Q1 FY27, and what contribution are you targeting for the full year?

A: Q1 revenue from Q-Devices was approximately ₹3 crore. For the entire previous financial year, we did ₹14 crore. For FY27, we are targeting a 10–15% total revenue contribution from Q-Devices, supported by new point-of-care products launching around Q3.

Q: B2B health camps conducted were 11,497 in Q1 FY27. What was the exact revenue from these camps, and what is driving growth in this segment?

A: The B2B health camps generated ₹6.4 crore in revenue for Q1. The primary driver is our expansion into deeper therapeutic areas with pharmaceutical partners, such as early screening and diagnosis programs for chronic conditions like diabetes and the recently launched GLP-1 segment.

Q: Why did employee expenses increase sequentially to ₹11.2 crore in Q1? Does this mean operating leverage is not materializing?

A: The employee cost increase was driven by additional upfront hiring required for executing our expanded Patient Support Programs (PSPs). Some long-term PSP contracts require on-payroll employees rather than contractual hires. This cost is directly offset by the higher service revenue generated from these active annual contracts.

Q: How do PSP contracts typically work, and can we calculate an order book for this business?

A: Our PSPs operate as annual cost-plus contracts. We charge the client for employee costs, administrative costs, and allied services based on actuals plus a markup. Because these are annual contracts renewed toward the end of each year, we don't track a conventional order book, but they provide strong revenue visibility.

Q: What is the revenue visibility for the services business in FY27?

A: Combined service revenues for Q1 stood at around ₹24–25 crore (₹17.6 crore from PSPs and ₹6.4 crore from camps). Based on current signed contracts, we have visibility for approximately ₹90–100 crore in overall service revenue for FY27, which could reach ₹100–105 crore if additional contracts in negotiation materialize.

Q: What are the EBITDA margins across the services portfolio?

A: Margins vary by service type: we achieve higher margins in B2B healthcare camps and slightly lower cost-plus markup margins in PSPs. On a combined basis, we estimate service EBITDA margins to remain in the 20–25% range.

Q: What drove the gross margin expansion during Q1 FY27?

A: Gross margin expansion was driven by a revenue mix shift toward our higher-margin services business. Services increased from 30% of total revenue in Q1 FY26 to 40% in Q1 FY27, naturally elevating our overall gross margins.

Q: What is your updated top-line guidance for FY27 given the ₹57 crore performance in Q1?

A: We are maintaining our previously guided top-line figure of approximately ₹220 crore. Because pharma contract cycles can sometimes experience delays in any given quarter, we prefer to stay conservative early in the fiscal year before re-evaluating guidance near Q2 or Q3.

Q: What is the historical renewal/stickiness rate for your PSP contracts?

A: We generally see a 60–70% contract renewal rate year-over-year. Additionally, multi-year contracts include built-in price escalations ranging from 5% to 12% annually, depending on project scale.

Q: Why are pharmaceutical companies increasingly shifting budgets toward Patient Support Programs?

A: PSPs offer pharma companies better physician engagement and drive patient access and treatment adherence. Specialized therapeutic areas such as GLP-1 weight loss medications, oncology, hepatology, and rheumatology require structured patient education and ongoing monitoring as an integral part of their market strategy.

Q: How are operations and revenues split between QMS and Saharti Healthcare?

A: Operations, teams, and synergies between Saharti and QMS are fully integrated. Contracts are signed under either entity based on customer relationships and regulatory registrations. Therefore, service performance should be evaluated on a consolidated basis rather than comparing standalone figures.

Q. Are employee expenses expected to rise further throughout FY27?

A: The current quarterly employee expense run-rate is stable and reasonably settled for FY27, with minor 5–10% variations for routine hiring or annual hikes. Any significant additional hiring later in the year will be strictly tied to new contract wins on a cost-plus-margin basis.

Q: What is the long-term vision and revenue target for Q-Devices over the next 3 years?

A: We currently have around 17 products under the Q-Devices banner and plan to expand this line with fresh, technology-based launches. Over the next 3 years, we target Q-Devices to contribute approximately 25% of our overall product revenue.

Q: Are the medications covered under your PSP programs mostly generic or patented?

A: It is a combination of both. We manage programs for patented high-specialty molecules in oncology, virology, and hepatology, as well as genericized categories such as semaglutide (GLP-1) where multiple generic pharma players are launching products that require structured patient support.

Strategic Outlook

1. Scaling Patient Support Programs remains a key priority, supported by increasing pharma demand for structured patient engagement and chronic disease management. Regulatory shifts limiting direct promotions are also creating opportunities for PSP adoption.
2. Completion of the Saarathi Healthcare acquisition is expected to strengthen QMS’ disease-management capabilities and broaden its ability to manage the complete patient journey, supporting deeper and longer-term pharma relationships.
3. QMS intends to expand Point-of-Care offerings and integrate diagnostics and home-care solutions with PSPs. Wider deployment of screening and diagnostic solutions can support faster PSP enrolments and increase device adoption.
4. The company plans to scale Q-Devices across diagnostics, home-care and wellness categories, using its own-brand portfolio to strengthen product economics while leveraging its established distribution and sourcing network.
5. Technology remains central to the growth strategy, with the proprietary platform supporting 100+ programs and 1 mn+ patients. AI, analytics and real-time monitoring are expected to enable more personalized interventions and scalable healthcare delivery.
6. Management remains focused on strengthening strategic partnerships, expanding healthcare access and leveraging its integrated product-and-services ecosystem. The company believes its customer relationships, growing capabilities and expanding healthcare presence position it for sustainable long-term growth.

Business Strategy

1. QMS follows an integrated healthcare model combining medical product distribution with patient engagement and healthcare services. Its offerings span B2B sales, e-commerce, Point-of-Care solutions, PSPs and B2B health camps.
2. The company is expanding its own-brand Q-Devices portfolio to gain greater control over quality and supply chain while improving margins. The portfolio leverages QMS’ industry insights and complements existing sourcing partnerships.
3. QMS is deepening relationships with pharma companies and hospitals, supported by a network covering 100+ cities and 5,000+ pin codes. It works with 50+ leading pharma companies, including the top 10, while expanding hospital distribution.
4. Patient Support Programs are being scaled as a key growth engine, with QMS providing end-to-end disease management, counselling, diagnostics, digital engagement and follow-up services through its phygital model.
5. The company is leveraging its proprietary CRM and digital health application to integrate PSPs, track patient journeys and generate actionable insights. The platform is cloud-enabled and designed for scalable, data-driven patient interventions.
6. QMS is also using its exclusive healthcare vendor access on the e-Grameen portal to expand Q-Devices and partner products into underserved rural and semi-urban markets, thereby widening its distribution footprint.

Key Highlights

1. QMS delivered a strong Q1FY27, with consolidated revenue rising 22.31% YoY to ₹56.87 crs, while EBITDA grew 27.13% to ₹8.31 crs. EBITDA margin improved to 14.61% from 14.06% in Q1FY26.
2. Consolidated PAT increased 25.27% YoY to ₹3.96 crs, with PAT margin improving to 6.96% from 6.79%. Sequentially, revenue and PAT grew 22.31% and 25.27%, respectively, highlighting a strong operating start to FY27.
3. The Products business remains a major revenue contributor, supported by 900+ SKUs, Q-Devices and a pan-India distribution network. Product revenue stood at ₹33 crs in Q1FY27, including Q-Devices.
4. Services continued to gain traction through deeper pharma partnerships, Patient Support Programs (PSPs) and B2B healthcare camps. QMS conducted 11,497 B2B health camps in Q1FY27, while Services contributed ₹17 crs of revenue including Saarathi Healthcare.
5. QMS currently owns 76% of Saarathi Healthcare and expects to acquire the balance stake by the end of Q2FY27. The acquisition is expected to strengthen disease management and PSP capabilities and enable a more comprehensive patient-journey offering.
6. The company’s technology-led healthcare ecosystem supports 100+ PSPs, 1 Mn+ patients and 350,000+ healthcare professionals, with real-time tracking, analytics and AI-driven interventions through its proprietary platform.

Performance

Q1 FY27:

1. Revenue from operations: ₹56.87 crs (↑22.31% YoY)
2. EBITDA: ₹8.31 crs | EBITDA Margin: 14.61% (↑55 Bps)
3. PAT: ₹3.96 crs | PAT Margin: 6.96% (↑16 Bps)

FY26:

1. Revenue from operations: ₹172.88 crs
2. EBITDA: ₹26.62 crs | EBITDA Margin: 15.40%
3. PAT: ₹11.88 crs | PAT Margin: 6.87%