API Holdings (PharmEasy) FY26 Results: Financial & Operational Performance vs FY25

The parent company of PharmEasy, API Holdings Limited, reported a strong operating performance for FY26. The company’s audited consolidated financial statements for the year ended March 31, 2026, show higher revenues, positive EBITDA before exceptional items and ESOP expense, lower finance costs and a substantial reduction in net losses.

API Holdings, however, remained loss-making at the net level, making the FY26 improvement more accurately a turnaround in operating performance rather than a full return to profitability.

API Holdings FY26 Financial Performance

On a consolidated audited basis, revenue from operations increased from ₹5,872.2 crore in FY25 to ₹6,618.5 crore in FY26, representing growth of approximately 12.7%. Total revenue, including other income, increased from ₹5,980.0 crore to ₹6,689.3 crore. 

The company reported EBITDA before exceptional items and ESOP expense of ₹99.9 crore, compared with a loss of ₹179.1 crore in FY25. On the same basis, the EBITDA margin improved from -3.0% to 1.5% of revenue. 

The improvement was supported by a higher-margin business mix, employee-cost optimization, warehouse rationalization, lower expected credit loss provisions, and greater operating efficiency, according to the company's annual report. 

Losses Narrow Sharply in FY26

Despite the operating improvement, API Holdings still reported a net loss.

The consolidated loss in FY26 was Rs 520.3 crore compared with Rs 1,572.4 crore in FY25, down about 66.9%. Loss Before Exceptional Items and tax narrowed to ₹456.1 crore from ₹1,220.4 crore.

The improvement was driven partly by lower exceptional and non-operating charges. API Holdings had no exceptional items in FY26 against ₹296.5 crore in FY25. ESOP expense also witnessed a sharp dip to ₹62 crore from ₹482.2 crore.

The finance costs reduced from ₹506.1 crore in FY25 to ₹410 crore in FY26, which further helped in reducing the losses. 

Operating Performance Across Businesses

API Holdings generates revenue through product sales and services. In FY26, product revenue was approximately ₹5,670 crore, while revenue from services was approximately ₹941 crore. 

B2B distribution

The Retailio 1P business generated ₹3,857.9 crore in FY26. Revenue per retailer increased from approximately ₹54,000 in March 2025 to ₹63,000 in March 2026, according to the company. Management also highlighted better fulfillment, warehouse utilization, and greater customer wallet share as areas of improvement. 

Distribution to retailers generated ₹955.3 crore, while the Aknamed hospital-supply business generated ₹847 crore in FY26. 

PharmEasy consumer business

The PharmEasy platform remained an important part of the consumer-facing ecosystem. The company reported a 14.5% increase in its average active user base in Q4 FY26 versus Q4 FY25. The proportion of loyalty users among active users also increased from 32% to 43%. 

The annual report also notes that the company increased focus on profitable customer segments and higher-margin products. It also stated that platform migration caused some disruption during part of FY26. 

Diagnostics and Thyrocare

Thyrocare was one of the better operating businesses in the group.

The company made available 1,275 diagnostic tests via 41 labs during FY26. It carried out some 210 million tests, up 23% year-on-year, while its active franchisee base increased by around 15% to over 10,800.

The number of NABL-accredited laboratories increased from 29 in March 2025 to 35 in March 2026. Diagnostics revenue via the PharmEasy marketplace also hit ₹158.8 crore in FY26, the company said. 

Cash Flow and Balance Sheet Focus

One of the biggest improvements for FY26 was in the operating cash generation. Operating cash flow moved from outflow of ₹210.9 crore in FY25 to inflow of ₹77.2 crore in FY26.

But the improved overall cash flow should be taken with a grain of salt. Investing cash flow had a net withdrawal of ₹553.3 crore from fixed deposits. Financing cash flows were on account of debt restructuring and repayments.

The NCDs issued to 360 One will replace debt of ₹1,700 crore from previous lenders Goldman Sachs and Evox, the company said. The principal repayment of ₹620 crore is due in FY26. As at March 31, 2026, NCDs outstanding were approximately Rs 1,080 crore. 

What Changed in FY26?

The FY26 results indicate three major changes in API Holdings' financial profile:

Revenue growth returned: Revenue from operations grew 12.7% after the relatively modest growth seen in FY25. 

Operating profitability improved: EBITDA before exceptional items and ESOP expense turned positive at ₹99.9 crore, with the margin moving to 1.5%. 

Losses reduced substantially: The consolidated net loss declined by nearly 67%, although the company remained loss-making. 

Outlook for API Holdings

API Holdings' FY26 performance shows meaningful progress in operating efficiency, but the company has not yet reached sustainable net profitability. Continued revenue growth, higher-margin business mix, working-capital discipline and lower financing costs will remain important for further improvement.

Management reported that core working-capital days improved from 50 days in March 2025 to 42 days in March 2026. 

The key question for future performance is therefore whether the FY26 operating improvement can be sustained while the company continues reducing its finance burden and improving margins.

Conclusion

API Holdings FY26 results are clearly an improvement on FY25 on an audited consolidated basis. Revenue increased 12.7%, EBITDA before exceptional items and ESOP expense turned positive, operating cash flow improved and the net loss decreased by approximately 67%.

However, API Holdings is still not profitable at the consolidated net level and its debt and financing costs remain important factors to watch. So, FY26 can be viewed as a year of operational turnaround and financial stabilization and not the turnaround completion.