Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Vaidya Sane Ayurved Laboratories Limited (NSE: MADHAVBAUG) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Rohit Madhav Sani — Chairman and Managing Director
Presentation:
Operator
Ladies and gentlemen, good day and welcome to H2 and FY26 earnings conference call of Vaidya Sanai Ayurveda Laboratories Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. This conference call may contain forward looking statements about the company which are based on beliefs, opinion and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Dr. Rohit Madhavsani, chairman and Managing Director from Vaiasanya Ayurved Laboratories Ltd. Thank you. And over to you sir.
Rohit Madhav Sani — Chairman and Managing Director
Thank you. Thank you sir. Good afternoon everyone and thank you for joining the Vaisani Ayurveda Laboratories Limited earnings call to discuss our performance for the second half and year ended 2026. I would like to begin by expressing my gratitude to all of you for taking time to enjoy us today. On behalf of the management team, I would like to extend a warm welcome to all of our investors, analysts and stakeholders joining us today. We appreciate your continued trust and interest in our journey as we work towards building India’s leading evidence based Ayurvedic disease reversal platform.
I have with me on call today Dr. Vidut Vipin Ghaz, the whole time Director, Mr. Narendra Pawar, the Chief Financial Officer and AD Factors PR team and our Investor Relations team. We have shared our results update presentation. I hope you all must have received it. We appreciate your interest in our company and we are excited to share our business updates, financial performance and strategic outlook. Over the last two decades Madhavag has built a differentiated healthcare ecosystem focused on reversing non communicable lifestyle diseases through a unique integration of Ayurveda and modern diagnostics.
Today our network spans more than about 320 clinics across Delhi, NCR, Uttar Pradesh, Madhya Pradesh, Maharashtra, Gujarat, Goa, Karnatak. Out of these, 24 are company owned clinics and 46 are OPD centers and mini clinics and 250 are the franchise clinics. There are about four company hospitals and two franchise hospitals. The franchise hospitals one in Surat and the other in Kodapur over about 134 beds total and a strong ecosystem of 450 plus Ayurvedic physicians across 14 states and union territories.
We have successfully treated over 10 lakh patients till date. More than that while continuing to strengthen our scientific credibility through published clinical research and technology enabled patient monitoring. Over the last few quarters our strategic focus has been on transforming our revenue mix and improving the unit economics. Historically our business was largely driven by preventive healthcare programs with relatively lower ticket sizes. However, we have consciously shifted our focus towards specialized disease reversal programs targeting cardiac disorders, diabetes, hypertension, obesity and related lifestyle disorders.
So these therapies generate significantly higher annual revenue per patient typically in the range of 50 to 60 thousand rupees compared to preventive care programs which are largely in the range of 10 to 13,000 annually. In the FY26 we have generated about 1,18,223 new patients. Our medium term target is to reach about 2 lakh new patients annually. It is FY28 supported by stronger brand awareness, digital engagement and increased insurance coverage. A key strategic shift has been our move from preventive wellness to disease reversal programs higher value interventions where average patient billing ranges from 50 to 60,000 rupees annually.
This aligns better with our doctors expertise and the clinical outcomes we are known for, helping us achieve both better patient results and stronger financial returns. This transition is not only improving our average realization per patient but also allowing us to better utilize our doctors expertise, strengthen patient outcomes and improve profitability across the network. We believe this strategic pivot will remain one of the most important long term growth drivers for the company. On the operational front our Gopodi or else our hospital business continues to scale steadily.
We currently operate hospitals in Kopoli, Nagpur, Vadodara and Vishakhapatnam with a combined capacity of more than about 134 beds. Our near term objective is to increase this capacity to 250 to 300 beds over the next about 12 to 15 months through expansions in Kopoli and Nagpur as well as scaling up the operations at Vadodara Hospital. Also, the Kopoli expansion remains a key focus area for us supported by CGHS approval and active cashless insurance tie ups which continue to support occupancy and patient accessibility.
Simultaneously, our other hospitals are progressing well towards insurance empanelment with major insurers and TPAs which we expect to significantly improve utilization and patient inflow over the coming quarters. As we have consistently communicated, hospitals represent the next phase of growth for Madhavan. Hospital based disease reversal treatments offer stronger monetization opportunities, higher patient engagement and improved EBITDA contribution. Over the medium term, we expect our revenue mix to gradually evolve from the current clinic heavy structure towards a more balanced 50 50% mix between clinics and hospitals.
At the same time, we continue to expand our clinic footprint through our Asset Light Franchise LED model. We expect to add approximately about 30 to 40 franchise clinics in next year or so. This model enables us to scale efficiently with limited capital deployment while strengthening our reach in underserved and high demand markets across India. Our digital ecosystem also continues to play an important role in improving patient engagement and clinical outcomes. Our MIB Pulse app application and our proprietary Power map analytics platform are helping us monitor patient adherence, track outcomes and create a more data driven healthcare ecosystem.
The MIB Pulse platform has already crossed more than about 1 to 1.5 like downloads and continues to support long term patient retention and treatment monitoring. On the manufacturing side, our subsidiaries Dynamic Remedies and UV Ayurgen Pharma continue to strengthen our vertically integrated model in house. Manufacturing ensures quality consistency, supply assurance, cost optimization and faster development of standardized Ayurvedic formulations and diet kits. Products continue to remain an important contributor to enterprise revenues while also supporting margin expansion.
During the year. We also took a strategic step towards strengthening our healthcare platform with the proposed acquisition of Parasnath Healthcare OPC Private Limited. This acquisition aligns with our long term vision of expanding our healthcare capabilities, enhancing service offerings and strengthening our presence in the integrated healthcare ecosystem. We believe this proposed transaction will create operational synergies, broaden our reach and support sustainable growth going forward subject to completion of definitive agreements and applicable regulatory approvals.
Another important milestone during the year has been our International Expansion Initiative through our Malaysia partnership with Maxura Healthcare. This marks the beginning of our global journey and validates the scalability of our evidence based Ayurvedic disease reversal protocols in international market. We believe this Asset Light model can become a template for future international growth opportunities. In addition, we have also initiated investments in Urja Neuro Care which will focus on neurological disorders such as Parkinson’s, paralysis and rehabilitation and Alzheimer’s care through Ayurvedic approaches.
This creates a strategic diversification opportunity while leveraging our clinical expertise and research foundation. Looking ahead, we remain confident about our growth trajectory. For the year of FY27. We continue to target revenue of approximately 170 to 180 crore supported by stronger patient additions, increasing hospital utilization and contribution from new clinics. Over the medium term we see significant potential to scale revenues towards 250 to 300 crore by FY28 while aiming for EBITDA margins about 20.
Our long term Mission 2028 and Mission 2030 remain firmly on track. We aspire to bring 5 crore people under our care ecosystem through thousand clinics, 10 hospitals across India and beyond. With rising awareness around preventive healthcare, increasing evidence of lifestyle diseases, growing acceptance of Ayurveda and strong government support through the Ayush ecosystem, we believe Madhubag is uniquely positioned to capitalize on this large and growing opportunity. Before I conclude I would like to to sincerely thank our doctors, employees, franchise partners, patients, investors and all stakeholders for their continued confidence and support.
We remain committed to delivering sustainable growth, strong clinical outcomes, operational excellence and long term value creation. Now coming to the clinical performance before Before I end the half year performance of FY26 the H2FY26 revenue from operations for H2FY26 is rupees 56.96 crore as against 48.12 crore in H2FY25. Year on year increase was about 18.37%. This growth has mainly driven by higher patient engagement, improved therapy adoption and robust growth in wellness product sales. The EBITDA excluding other income was rupees 6.80 crore in H2FY26 against 8.56 crores in H2FY25 but the profit after tax was 4.15 crore in H2FY26 as against 3.38 crore in H2FY25.
Year on year increase of 22.77%. The PAT margin was at 7.29% in H2FY26 increase increase of 26bps year on year. The basic EPS stood at 3.95 in H2FY26. The full year revenue from operations for FY26 is 106.91 crores as against 89.92 crores in FY25. Year on year increase of 18.89% driven by sustained patient additions, growing acceptance of Ayurveda healthcare solutions and continued strengthening of our clinical network. The EBITDA excluding other income was rupees 15.42 crores in FY26 as against 14.32 crores in FY25 increase of 7.63% driven by better cost control especially in employee and raw material expenses along with an improved product mix, the profit after tax was 8.99 crore in FY26.
Again 7.15 in FY25. The basic EPS stood at rupees 8.51 in FY26. So now we are happy to take your further question.
Operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. Participants to ask a question. You may press star and one first question is from the line of Priyanshmiri from NGP family office.
Please go ahead.
Questions and Answers:
Rohit Madhav Sani
Hi sir. Hope I’m audible. Yes you are. Yeah.
Operator
Sir, congrats on a good set of numbers. You are diversifying and executing really well on different verticals within Ayurveda service line. So my question first is more on accounting part. So in the result we publish, we have three separate sister entities, right? Offer different ownership. So can you give some detail on the three sister entities that we have in company? And what are the long term vision with those? Are we going to merge it or spin it off? What is the business strategy with those?
Okay,
Rohit Madhav Sani
So as of now the sister concern companies majorly are related to the manufacturing processes. The one which is dynamic remedies which manufactures the medicines. While the other is the UV Iogen which manufactures the food. As we go ahead, we haven’t yet planned for the actual actions yet about whether we are going to merge it or whether we are going to take it ahead through a different route. The whole action plan is not yet completely decided. But in next few maybe months I’ll be able to decide that in a very right manner about what is to be done.
But that is what is the progress till now.
Operator
Okay, understood. So just a kind position being a investor in your company. Like if we simplify the corporate governance so that because like even for legit reason, right? Like to expand our back end medicine manufacturing and all.
Rohit Madhav Sani
Even
Operator
If we transfer some fund from our existing listed entity to other sister entity now
Rohit Madhav Sani
Those
Operator
Doesn’t sits well with lot of institution in this, right? So if you can, even at expense of diluting our blended EBIT because this are just a manufacturing like you’re saying,
Rohit Madhav Sani
If
Operator
It simplifies the overall cooperative structure, your company would be viewed much more with good life, right? Among investors, that is a one kind facial Set another one, sir. Yeah. Thank you. Thank you sir. Another one. Sir, question is on the financial sheet that we submitted. So in that the other expense is more than 50 sir of our expense and not enough breakdown was given, right? So can you if you have the detail handy, can you please explain what are the further components within those other expense?
Around 50. The details are not handy with me.
Rohit Madhav Sani
But I can tell you a few things about it. This other expense majorly includes the marketing expense
Operator
As
Rohit Madhav Sani
Well as the clinic expenses as well as the professional fees that usually the senior doctors usually that they get. And rest of that has the rent as well as GST and other rates and taxes. So that is majorly so majorly that gets grouped into other expenses.
Operator
Understood. So one more question here also like it can communicate to your auditors, right? Like it’s a good practice. Even if you are not giving a breakdown now of other expense it should be maybe around 10 at max of your total expense, right? If it is more than 50 and no split is given then it becomes harder.
Rohit Madhav Sani
You are. Sorry to interrupt sir, your voice is breaking.
Operator
Yeah.
Rohit Madhav Sani
Can you repeat
Operator
It?
Rohit Madhav Sani
So absolutely that if at all we don’t consider marketing expression to will come down to 10% only.
Operator
Okay.
Rohit Madhav Sani
When the marketing gets included into goes more.
Operator
Okay.
Rohit Madhav Sani
Yeah.
Operator
This is one hygiene classification or details, right? That we might have. Okay. If we improve on this now this will
Rohit Madhav Sani
Surely
Operator
Should better, right? One last question sir. On your hospital mix you mentioned like by FY28 we are targeting around 240 to 260 crore, right? As a revenue. So what percentage will be for from hospitals,
Rohit Madhav Sani
Huh? By FY28 about 250is what about in that case I am looking for about. In that case we’ll be having about 150 beds in the Kopoli hospital itself. Where in about I’ll be looking for about 50 odd percent of revenue from the Kopoli hospital itself. So if at all we talk about the actual figure. Yes. It will be somewhere about 100 crore should be expected. Under 125 crore should be expected from the hospitals itself.
Operator
Okay. Then blended average would be around 50,000 to 60,000 that we’re expecting
Rohit Madhav Sani
In the hospital. You mean to say?
Operator
Yes.
Rohit Madhav Sani
In the hospital it would be the blended arpu is going to be about. Yes. $70,000.
Operator
Okay. Okay. Understood sir. Thank you. Thank you for taking the. Thank you. Next question is from the line of Dhananjay Bhagodia from Alchemy. Please go ahead.
Rohit Madhav Sani
Hi. So just want to understand. You spoke about franchisees what is the unit economics for them? Like
Operator
How does it work for a franchisee? Cost and revenue and what is their numbers like?
Rohit Madhav Sani
Okay, okay. In case of a franchise generates a turnover of 100 rupees, normally 35 to 40 rupees come down to the company. So that is the broader division between the our revenue as well as their revenue.
Operator
No, I get that part. But today
Rohit Madhav Sani
What
Operator
I today this is the highest royalty rate or revenue rate where you get forty and their hundred. What is their cost and what is what are you all helping them? So you can understand. Okay. Yes,
Rohit Madhav Sani
Yes, yes. I’ll tell you. So in this, this is not the only royalty that I’m talking about. We give them all the support related to the medicines that they need to support the patient’s health as well as the therapy kits that they need to perform the Panchakarma procedures. As well as the marketing efforts that we do for them to get the new patients to their clinics. And as well as the research papers that their names usually have into those research team is with us as well as other supports like the logistic as well as any kind of senior medical support, any kind of non improvement in the patients.
That improvement for which our senior medical doctors go to their clinic, all such kind of support has been included in it. And hence it comes down to 40 which majorly includes the medicines that they purchase.
Operator
So just to understand, let’s say for franchisee, what do the cost for him be?
Rohit Madhav Sani
I’ll tell you. For example, consider a franchise usually gives us about 35 to 40%. So consider 10 lakh. I got it, I got it. I’ll explain you. I’ll explain you. So on an average a franchise salary usually goes from about 1 to 1.5 lakh rupees per month.
Operator
The
Rohit Madhav Sani
Rent differs from geography to geography but we can consider it 50,000 to 1 lakh. 25,000. 1 lakh 50,000amonth max. And the remaining goes into some kind of ancillary expenses. So if a franchise earns about 10 lakh rupees a month out of which about 3 and a half to 4 lakh rupees is paid to the company. More about 3 lakh order goes into other expenses. So on an average about 2, 2 and half lakh rupees is what the franchise carries at home.
Operator
Okay. And so for your me, how many franchises you’ll have at the moment?
Rohit Madhav Sani
Somewhere about 180, 180 to 190.
Operator
What was the same number when you say three years ago?
Rohit Madhav Sani
Almost the same thing.
Operator
So numbers are Going to increase.
Rohit Madhav Sani
We haven’t increases as of now last three years.
Operator
Why is that so
Rohit Madhav Sani
In last two, three years back when the marketing was deranged to a certain extent.
Operator
We have now
Rohit Madhav Sani
Tried to get that marketing back into action. Now this year when the marketing increases and the new patient footfall increases to the existing clinic then we’ll be starting with increasing the number of franchises as well. We are concentrating majorly on the hospital growth. The hospital growth as of now. So we are not investing our money in having new company clinics. So we’ll be looking out for franchise clinics. So the growth is slow in case of franchise clinics. But the reason is that we have stopped because I want to nourish the existing franchise clinics with more number of new patients.
Once that happens, then we’ll be growing with the number of franchise clinics. Okay. In the new geography.
Operator
Sorry to interrupt. Mr. Brakodia may please request you to rejoin the Q. Sir, several participants are waiting for their turn. Okay,
Rohit Madhav Sani
Fine. Thank
Operator
You. Next question is from the line
Rohit Madhav Sani
Of Darshil Javeri from Crown Capital. Please go ahead.
Operator
Hello. Good afternoon sir. Thank you so much for taking my question. Hi sir. So just wanted to understand in terms of H2 why has our EBITDA fallen so much? If I Compare compared to H1 and even compared to last H2, sir. So like what do we look at the steady state EBITDA? Because we are saying about 20 but I think in H2 we were around without the other income. You are at around 12. So just wanted to understand sir.
Rohit Madhav Sani
So it was about the introduction of the new call center that we had introduced. That call center was an extra expense on this whole plan. And that has been the major reason. No other reason other than that.
Operator
Okay, so. So currently what is the extra cost of it? Because call center would be a cost center, right? It would be 50 to 60 lakh
Rohit Madhav Sani
Rupees a month.
Operator
Okay. Okay. It would be around 50 to 60 lakh rupees a month. Right. Okay, fair enough. So sir, in FY27. Sir, revenue is very clear. Sir. But it the tw. What is the steady state EBIT margin that you know we can do, sir,
Rohit Madhav Sani
More than this and reaching towards 20.
Operator
Okay, we’ll be reaching towards 20. Answers. Any thoughts for us to you know do quarterly calls. Because sir, what happens now when we come out with the results now if you would be more aware about this cost center in December something the reactions wouldn’t be
Rohit Madhav Sani
Such
Operator
Wild. So if. Because now we are also a growing company. So if possible, you know we could do A quarterly call. That would be really beneficial. I’ll
Rohit Madhav Sani
Try for. Surely I’ll try for that.
Operator
Yeah, fair enough, sir. And so just last question from my answer.
Rohit Madhav Sani
So
Operator
Currently a lot of people are now coming into this segment. So do you see that there is going to be some competition or you know, because of a lot of more people coming in we’ll have to, you know even enhance some more marketing expenses. Any kind of, you know, rough marketing ad spend target in FY27, sir.
Rohit Madhav Sani
Yes. About FY28. I’ll give you the whole plan would be reaching about 2 lakh new patients is what we’ll be planning for. So on an average it would be somewhere about rupees. 2000 rupees per new patient acquisition is what we’ll be planning for. So somewhere about 40 to 45 crore of marketing expense is what is to be required to reach to that level.
Operator
That would be per year or total over the next few years. Okay.
Rohit Madhav Sani
Per year.
Operator
Okay. Okay. Okay. Fair enough, sir. Fair enough. So then that would drag our EBITDA more now because
Rohit Madhav Sani
We
Operator
Haven’t spent that much currently, right?
Rohit Madhav Sani
We haven’t spent that much. But if a level of about 180 crores is what we reach. So in that case about 40 to 45 crore of marketing plus 40 to 45 crore of COGS, that’s about 26%. Plus it would be about 25 crore odd of HR manpower expenses. And maybe 10% of the total turnover would be the other expenses. That would reach somewhere about 140, 150 crore odd of total expense. So about 30 crore still stays back in this whole calculation. So somewhere about 18, 19 EBITDA can be expected.
Operator
Oh, okay. Thanks. Okay. Fair enough. That is a really detailed breakup, sir. Thank you so much, sir. All the best. Thank you.
Rohit Madhav Sani
Thank you. Next question is from the line of akshat mehta from 7 reverse holding. Please go ahead.
Operator
Hello, sir. Thank you for your question.
Rohit Madhav Sani
First
Operator
Question is on the. On the 27 revenue target that you’ve given 170, 200. Can you just break that down a bit as to, you know, how would you achieve that between hospital, between hospitals also between, you know, number
Rohit Madhav Sani
Voice. Your voice was not clear to me. Can you come once again?
Operator
One second, sir.
Rohit Madhav Sani
Hello. Yeah. Yes. Yeah. Yes.
Operator
I was asking that the target that is given for FY27 for 170, 180 crores. Can you just break that up a little bit as to, you know, how you will achieve between hospitals and. Between franchisee clinics and hospitals, between, you know, number of beds and the R2 as well.
Rohit Madhav Sani
So if we have to reach about 170 crore, the hospital revenue has to be somewhere about 50 to 60 crore. And the total clinic revenue has to have save about 100 to 110 crore. So that is supposed to be the whole plan. So we are heading towards it. We are planning for that.
Operator
And hospital segment is going majorly because of the belt addictions that you are doing or will you see some, you know, single day R2 growth also?
Rohit Madhav Sani
Yes, we will be seeing a single digit R2 growth also as well as the number of beds also should increase to a marginal level. But that will help us as well as the marketing activities that we are trying to do for the existing hospitals. That also will help us to reach to that level.
Operator
Sir, my next question on the marketing cost. So you said that the call center costs around 50, 60 lakhs per month which is around 1 and a half to 2 crores. Apart from that there’s been a, you know, 78 crore jump from first half to the second half of the year in terms of the other expenses. So I’m assuming this is all marketing costs. So when will we kind of see the effect of the marketing calls? Because this year we’ve seen kind of a 19, 20%.
Rohit Madhav Sani
Right? Right. The same. Because what happens is 19 to 20% of growth that we see in our books that is more in the total organization’s enterprise growth. So whenever the enterprise growth is about, say about 50 crore odd out of that 40% comes into the company’s books. So the marketing, whatever we do is for the franchise clinics as well as the hospitals as well as all the company clinics also. So whenever the enterprise growth increases by about 100 rupees, 40 comes into the composition. So you will always see that kind of drift in between this.
But the growth is actually going on. Hence 18 to 20% of growth is seen in the company’s books.
Operator
If the the percentage is similar, right? 40% it was last year 40 and this year also 40%. So if it grows from 100 to 125, that 40% will also grow by 25%, right? Yes.
Rohit Madhav Sani
Yes, you are right. So that should happen now. So we have. Yes, 27, 28. We are looking ahead for it.
Operator
Okay, can you help us understand? You know where in the stage of expansion each of the hospitals are that we want to reach to 2,300 beds?
Rohit Madhav Sani
Yes, I will. Right now the Kopoli Hospital is 50 bedded and we have now reached to about the third slab out of those total seven slabs of the Kopoli hospital. So the construction is in full space. And so as we go on to the seventh slab before the rain begins in next two, two and a half months. What is we are planning for that will help us to start with the ground floor of the existing construction. So that would happen for the Kopoli hospital as well as for the Nagpur hospital. We are waiting for the permissions from the government.
Once that comes in, we’ll be planning to set up the Nagpur hospital also.
Operator
Okay. And Baroda hospital? Sir,
Rohit Madhav Sani
Baroda hospital is a rental model. We don’t have to spend anything into it. Once we reach to about 60% of the total accommodation in the Varada hospital we’ll be going for the top floor which has more about 75 or odd beds accommodation space existing with it. So that will have some more time to reach to that level. Can you share your.
Operator
Sorry to interrupt. Mr. Mehta. May we please request you to rejoin the queue, sir. Thank you. Next question is from the line of Dharmesh Patel from Gyanam Capital. Please go ahead. Dharmesh, your line is unmuted. Please go ahead with your question. As there is no response from the current questioner we will move to the next question from the line of Vinayak Korva from Virtuous Capital. Please go ahead. Vinayak, your line is unmuted. Please go ahead with your question.
Rohit Madhav Sani
Yeah, this Vinayak. Yes, now my voice is clear.
Operator
Yes, you are audible. Please go ahead.
Rohit Madhav Sani
Yeah. So doctor, can you brief more on that If I pronounce properly Parasnath, the hospital which we acquired. So my question would be.
Operator
You have mentioned in the result note. It is. It has got 14 crore revenue as of March 26. So. So one first question is is what is an EBITDA with this foreign crores? Hopefully we are expecting. Because it is too early to ask you on ebitda.
Rohit Madhav Sani
Second thing,
Operator
Do we have any balance sheet which you can say whether the asset has also come in or how many clinics they have or how many beds. So can you brief more on that?
Rohit Madhav Sani
Yes. So these Parasnath clinics are. Is a chain of about 70 odd franchise clinics. And the company turnover is about 14 crore odd. And the EBITDA that I had seen was about 1.1 crore odd was the EBITDA. And these Parasana clinics are majorly working in joint pain treatment through Ayurveda. So that has been since about 10, 12 years past. These clinics have been there and they have reached to a level of 14 crore of with 70 franchise or so in the future we are again planning to increase. Sorry, sorry
Operator
To interfere. No problem is in the books of Parasmart, right? It is not a gross turnover. It is net turnover in the books of Parasnath.
Rohit Madhav Sani
Net turnover.
Operator
Perfect. Please sir, go ahead. Yes.
Rohit Madhav Sani
So in the future we’ll be planning to grow with the franchise of these joint pain clinics also. As well as there is a room to increase the EBITDA margins also. As we go ahead we’ll explore it still further.
Operator
Same continuing second question. The 6 crores what we paid is an equity value to the shareholder from whom we bought 100%. Right?
Rohit Madhav Sani
Yes.
Operator
Okay. So would we expect any further investment in the company to grow this business?
Rohit Madhav Sani
Not required as of now. Because now we’ll be integrating these hospital, these clinics, treatments with our existing hospital. So that the cross referral in between these clinics to the hospital as well as Madhavag clinics for all those joint patients who have heart diseases would be referred to Madhubag as well as Madhavag patients who have joint pains will be referred to these clinics. So cross referral inside the clinics as well as clinic to hospital will begin.
Operator
So. So my understanding is this company doesn’t become a subsidiary as of 1st March 26th current financial year. It will become subsidiary, right?
Rohit Madhav Sani
Yes.
Operator
So this. This revenue consolidated revenue 106 crores. Odd. Which we have achieved. No. That doesn’t use this for.
Rohit Madhav Sani
No. Okay.
Operator
Okay. Great. Great. So sir, as a repeat question again we are very. See I remember 18 months back I asking in a con call on the accountability. And I’m. I should say I’m very very happy. You have enforced the accountability on respective people. Whether it is CEO, whether it is CFO or whether it is Chief Marketing Officer. I wish to say that you should continue with accountability with each department. Because we don’t want Dr. That is Rohit Sane to handle lot many things. Rohit Sane should be a CEO above everyone.
And each department head should have an accountability. And we would love to know kill six months down the line or 12 months down the line when we have a call again wherein we should. You should come and say. Okay, this particular department did very well. We rewarded them. This department had. Did not do well. But we removed them. So we would want to see such action rigorously, religiously. Sure.
Rohit Madhav Sani
Sure. We’ll be doing so. That’s
Operator
All, sir. So thank you and very happy to connect you.
Rohit Madhav Sani
Thank you.
Operator
Thank you. Next question is from the line of Keshav Harlalka from BH Securities Private limited. Please go ahead.
Rohit Madhav Sani
Hi. Hi. Thank you so much for giving me an opportunity. So I wanted to ask about Paras. The acquisition of Parasnath, the addition of 70 new clinics is like music to the ears. This and this cross referee will also work. So are we also looking at
Operator
Treating infertility in couples who want to conceive the Ayurveda way? Right now they are going only through ivf. So are we also looking at infertility treatment? That is question number one. Second question number two is we have got accreditations of NABH and cgs. Cgss. So NABH is the national accreditation board for hospitals and healthcare providers. It’s a globally benchmark
Rohit Madhav Sani
Quality certification for healthcare organizations in India. So it is focusing on rigorous patient safety infrastructure and clinical care standards. So that is very, very good news. So are we also looking at better aesthetics for our clinics? Because the aesthetics in clinics is I think somewhat not as it can become better. So are we looking at aesthetics in clinics and the central government health scheme which is for hospitals, we are getting it for Kapoli. That is also brilliant news because we are growing from 50 beds to 150 beds.
And I think, can you give us some timeline for completion of the Kapuli hospital? Will it be Jan. 2027? Will it be March 2027? When. When can you expect 150 beds to be up and running in Kapoli hospital? And the third question is international ventures in Malaysia
Operator
And do we also are looking at something in Dubai? Any international venture, any clinics in Dubai. So these are my three questions.
Rohit Madhav Sani
Okay. Okay. So first of all about the infertility clinics. Yes, we are planning about having more infertility clinics. We have been discussing about it with few of the already existing doctors who have been practicing infertility. So we have reached to a very good level where I think I should be able to speak about it in the coming maybe couple of months or so. So that is about infertility clinics. So the discussions are in phase one. Second, about the nabh. All the four hospitals are now NABH approved as well as we have also applied for the CGHS for all the remaining three hospitals as well as the fourth Kopoli hospital.
We have got the NABH approval from the board. But yet their portal, the NABH portal for sending the patients for the OPD and IPD is still a challenge from their side. So we are ready. We have been with the approval. So there has been some problem with the government portal. So they are waiting for it. I think that should Open up within a month or so. And with the Kopoli hospital construction as of now we are on the third slab. And I think in March 27th we should be ready with the 150 constructed hospital beds.
So that is about the Koppuli hospital and Dubai. Yes. We are now supposed to start with our first franchise clinic in Dubai. Maybe in more couple of months because all the government permissions are very much with us. And maybe in about a month or two we should be able to inaugurate the Dubai franchise as the first international franchise.
Operator
Okay. Now you also talked about opening of a new hospital. So where are you looking to open a new hospital and how many bedded would that be? Am I looking to expand that? Can you talk about that? Because we talked about it in the presentation but we don’t know where it is. Some. Can you give us some color on that? And also my last question is, are we looking at the main board migration from SME board? Because we’re already three years in the SME board.
Rohit Madhav Sani
Yes. So the new hospital. I don’t think so. We. New hospital is what the new construction that we are talking about Kopoli. So that is not
Operator
It. Got it? No,
Rohit Madhav Sani
No. And next about the migration to the main board. I think in next couple of months or so we should be taking that decision and we should be going ahead for it.
Operator
Okay,
Rohit Madhav Sani
That’s all from my end. Thank you so much. Thank you sir. Thank you.
Operator
Thank you. Next question is from the line of Ankur agarwal from Murtazak LLP. Please
Rohit Madhav Sani
Go ahead.
Operator
Hi sir. Sir, I remember in Q4FY25 scone call, we kind of think that, you know, we have everything in place now and we might grow 30% approximately. So like from 90 crore odds, we’ll do maybe 115, 120 odd crores in this year. Cause you said that now all the things are sorted, Cost structure sorted, marketing activities are sorted on the ground. Plus we also hired Sonu Suit right. As a brand ambassador. So that should give us even more leverage.
Rohit Madhav Sani
But
Operator
You know, looking at the numbers currently and looking at how the industry is growing, what is not working for us, I’m just skeptical because we are diluting also VA’s differential also. So as a minority shareholder, I don’t see EPS earning per share growing that much because of, you know, dilution and because of the growth rate of the company.
Rohit Madhav Sani
According to me, growth with about 18 to 20% per year seems to be a healthy growth compared to any other competitor or some other Companies? I don’t think so. Growth can be about 100% on whatever we’re doing as I planned for 30%. Yes, I’m still about sure about it that the growth will slowly get on to that level where you will see whatever you expected those things would be happening. But as of now about 18 to 20% of growth has what has happened till now. And as compared to the earlier years where we had been constant wherever we were, compared to that, 18 to 20% of growth is being good as compared to the earlier years.
That is what I see as of now.
Operator
Okay sir, answer like what’s monthly patient inflow right now?
Rohit Madhav Sani
Now it is about 11,000 per month in last about two months. So these first quarter, first three to four months are usually the slower months. So that has been a good number now because that will see on increasing as
Operator
We go ahead. So sir, like in Q4, FY25 like one year back, patient inflow was confirmed as like 9 to 10,000 per month. So we have had only 10 15% kind of a growth in patient inflow if I’m not wrong.
Rohit Madhav Sani
Yes
Operator
And yes sir, these clinics that we are having. So we had 335 odd clinics in that period and now we have 320 odd clinics. So sir, are we facing any operational challenges in keeping the clinics profitable or running? So
Rohit Madhav Sani
Island, I’ll explain you.
Operator
Yes,
Rohit Madhav Sani
We had done a small experiment in which we had started with non medical franchise owners to start with the Madhuba clinics wherein they would hire a doctor in over there. That total combination did not work as what we had expected. Hence we have not gone ahead with those number of clinics and hence we have come back to 320.
Operator
Understood? Like how many patients we have converted to care plan in FY26. So to a total about.
Rohit Madhav Sani
Yes, we have two different categories. One is the new patient who comes down. That is about 23,000 to 24,000 of new patients who have been converted for the therapy. Plus there are people who had been in our therapy and they have been converted into again more therapies for the next two, three years. So they are more 5,000. So on an average that comes to about 28 and half to 29,000 of patients who have been converted for the year long therapy.
Operator
Like don’t you see? Like don’t you think that this is a bit concerning? Because conversion to care plan is falling year on year from FY 2533,800 to FY 2533,300 to now 28 to 29,000. So sir, what could be the reason? I.
Rohit Madhav Sani
I’ll tell you. These care plans, what I have spoken about, this is about somewhere 45, 40 to 60 thousand rupees selling care plans is what I have spoken about. If at all. We talk about the diet care plans and all we have been about 37,000 as of now. Okay. I have not considered those smaller care plans in this because the ticket size is not that worth
Operator
Actually lasting. Like I saw our material cost this time came out to be 18% of the revenue. And it was like the same the last year although our revenue has increased from 90 crores to 107 crores. So do you feel like somewhere customers might be feeling like they are not getting their money’s worth or you know, are we doing like more cost cutting? Like I’m not able to make sense of the numbers
Rohit Madhav Sani
I didn’t get. Your question
Operator
Says for example last year when we generated 90cr of revenue, we did 18% was our material cost. And this time also our material cost is only 18% on 107 crore of revenue, not 18%. I’m sorry, I think 18 crores. Yeah. So our material cost is not increased although our revenue has increased.
Rohit Madhav Sani
Because that is an expense part.
Operator
Okay.
Rohit Madhav Sani
Material cost you mean to say, right?
Operator
Yes, the expense
Rohit Madhav Sani
Part.
Operator
Yes. Material cost in
Rohit Madhav Sani
Control.
Operator
That’s kept in control. Okay. So sir, like what can we expect going forward? Like even though you’re saying 160, 170 crore revenue seems possible but then you’re also saying that 20% growth is good enough. So how are we going to reach at 170, 50, 60 crores or 70 crores revenue? Like what’s the realistic figure you are seeing currently? So we are
Rohit Madhav Sani
Heading towards 160, 170 crore is what we are heading towards. And whatever I see right now, like for example in the last year or last last year like our social media digital engagement used to be hardly in thousands and now it is about 1.5 lakh rupee. 1.1.5 lakh of followers on the Instagram as well as YouTube. About 1 lakh followers. Now the digital engagement is also growing. So that itself shows that the awareness about the brand has been increasing on the digital media. So that itself shows that the growth would be much more positive as we go ahead.
Operator
Okay, so we are positive of doing 150, 170cr of revenue.
Rohit Madhav Sani
Yes. And
Operator
The cost structure would be similar to H2 or would it be similar to H1 going forward?
Rohit Madhav Sani
It would be somewhere in middle of it. Because the cost structure, we are very much in control with the cost structure. So I don’t think so there would be any grid. But first of all preserving the EBITDA is going to be most important thing as well as increasing the EBITDA is going to be the most important plan that we are trying to put up.
Operator
We can assume like 15% kind of EBITDA in next year. True. All right,
Rohit Madhav Sani
Thank you sir. Thank you. Thank you.
Operator
Thank you. Next question is from the line of SH and individual investor. Please go ahead.
Rohit Madhav Sani
Sir, I have two questions. The first question, can you just give us an explanation on the expansion of badge with the timeline? As in I don’t know like
Operator
Currently what are, what is the number of occupational
Rohit Madhav Sani
And
Operator
Then by which particular month or quarter at least if you can tell us, the bed capacity will increase as you said that by next year or I think 12 to 15 minutes, you’re saying that we will have a target to reach to 250 beds. Right. So from current we can see like where the capacity is going live. And if you can just give some commentary on that, that would be great.
Rohit Madhav Sani
Okay. What I’ll be looking at is till the March 2027 we’ll be having operational more 100 beds in the Kopuji hospital as well as in the Nagpur hospital. We should be having about more 40 to 50 operational beds in the Nagpur hospital. So on an average it would be more about 140150 more operational beds on the existing. So that will take us to somewhere about 100 and 250 to 300 beds altogether.
Operator
What is the current occupation? Is it 150
Rohit Madhav Sani
Total occupancy, you mean to say?
Operator
No, no operational beds as on Today, operational
Rohit Madhav Sani
Bed 110, 120.
Operator
Answer by H1 of next year. Do. Do we see this increasing or everything will increase probably by the second half of the year. Only second
Rohit Madhav Sani
Half of the year because then
Operator
What?
Rohit Madhav Sani
Yes, go ahead
Operator
Once.
Rohit Madhav Sani
Go ahead. Go ahead
Operator
Sir, by H1 then whatever the revenue will come, it will come from the same 120, 110 beds. Only some of the
Rohit Madhav Sani
Revenue, some of the revenue will come from the new beds. No doubt about it. Because even though the whole construction would be done after certain till after March 27. But we’ll be planning to have some beds operational as soon as the monsoon ends for this year. Because the first floor we should be able to receive, that is what has been discussed with the construction team. So post monsoon we should be having at least 15, 20 beds extra in the Koppoli hospital so that beginning would already happen so that the marketing also gets planned accordingly.
Operator
Understood sir. And so my second question is on the B2C tech. I think that in the last con call, if I remember you said that we are there are some products that we directly sell to the patient who comes for admissions. Right? So how many products do you sell and so what is the margins there we have and any plan for increasing the products or what are we doing on that section?
Rohit Madhav Sani
You mean to say the B2C product sales.
Operator
Yes, yes the B2C products. I think you said something. You’re checking on apps also instant delivery apps, right? Yes,
Rohit Madhav Sani
Yes, yes. So we have only one product which we sell it through these Quick commerce also that is called as Madhavrash which is Chevan Prash for the heart ailments itself. So that is what we have been selling now we sell about 15 to 20,000 units per month. So that is how we are going ahead with the Mathopra sale. And yes we are available on the Quick commerce and all other commercial sites as well as we are also looking out for partnering. The discussions are going at very good pace and we have started with a small trial with the generic outlets also.
So the first trial should end in next three months or so. Based on that we’ll be planning to set up for more retail shops also.
Operator
But this product we manufactured in house. This is a product that, this is completely built in house, this product.
Rohit Madhav Sani
Yes, yes.
Operator
What is the margin in this product? Like what margin in this product?
Rohit Madhav Sani
EBITDA margins. Right now it is the whole. Considering the marketing cost on the social media and all the EBITDA is near about zero as of now. But as we go ahead that will become cash positive
Operator
From the
Rohit Madhav Sani
Online media itself.
Operator
So we have a plan to launch more products or like and by when if you have any more products. As of now,
Rohit Madhav Sani
As of we do have several products in pipeline which we usually keep on using in the clinics for our patients who come down to the doctor consultation also. But as of now for marketing on these media we’ll be using this product itself. We’ll be trying out with other products but that is not going to be at such a scale that we are doing with Madhavaj. Once the retail pipeline gets built then we’ll be pushing more products through that retail pipeline because that is a bit cost sensitive kind of thing.
So we’ll be going slow in pushing more products to the same pipeline.
Operator
Got it. So just last question, what will be the driver for as you said that Our steady state margins will be around 20%. Right. And maybe next year we might be improvement from whatever our existing margins are. So what will be the two, three drivers that we should look out for which will lead to this increase in margin? And sir, just a follow up question. The capex that we are doing right, we done a preferential round also. Can you just give out the update on that Also how much has been utilized, how much is yet to be utilized?
All those things.
Rohit Madhav Sani
So zero has been utilized because that is still in the fda. So we haven’t utilized the money which has come. Because that is only 25 which has come in. So that will take more about 12 months for the money to come in. So those are warrants. That is one second you asked about. I forgot. Yes. So the growth drivers, one would be the new patient entry that we’ll be expecting in the clinics. So the first is going to be once the new patient entries increase. Obviously that will increase the number of enrollments in the year long programs and that will help us to reach to the level of turnover what we are expecting, keeping the rest of the cost structure in control.
I am sure that the EBITDA margin growth can be expected through this.
Operator
It’s only patient inflow. There’s nothing else that we are driving like in terms of keeping like
Rohit Madhav Sani
For the patient inflow we’ll be have to concentrate on the marketing efforts like I just mentioned, if at all. We have 2 lakhs new patients coming in. So on an average the whole enterprise revenue for the clinics would be about 280 crores for the enterprise out of which 40% would come to us. So that would be somewhere about 120, 130 crore or plus 50 odd crores from the hospital. So that would be somewhere about 180 crores is what we’ll be looking out for. I am looking out for it. But that would be marginal 5 to 10%.
So I’m not taking that into consideration as of now. Got it. Got it. Thanks sir. Thank you. Thank you.
Operator
Thank you. Next question is from the line of Akshat Mehta from seven reverse holding. Please go ahead. Hello.
Rohit Madhav Sani
Yes.
Operator
Yeah. So my question, one thing that I wanted to confirm so that you said that 27 will be having near 15 margin, is that correct?
Rohit Madhav Sani
Yes,
Operator
More than that. Right. Because we, we are targeting 20 margin FY28. So I mean where, where should we see 27 because 15 would be too low and you would see a big jump in 28. So how should, how should we see the cycle to 20%.
Rohit Madhav Sani
As I said, we’ll be growing from 15% towards 20% in this year itself. And that is doable. Keeping the manpower expense in control as well as the cogs is already well in control. Only the change would be in the marketing cost to get the expected number of new patients inside the clinic. So that is going to be the decisive factor in maintaining the ebitda.
Operator
Okay. Okay. My second question is on the is on some of bookkeeping. Question 1 Is your working capital cycle that has gone up this year again. Your payables have come down, your inventories have increased. Payables increased slightly. So why has that gone up and how should we see that? And secondly, you’re in H2. You’ve seen a big decrease in your tax rate. So why is that happening?
Rohit Madhav Sani
So about the inventory, usually what happens is March month is full of the clinics also are activated about it. And hence more amount of products are being ordered in the depot that must have seen into the inventory increase. There is no other reason for it. Next question. I forgot about what we asked. Accurate
Operator
Tax rate. Why is it accurate so low in second office?
Rohit Madhav Sani
I have no answer on this as of now. I’ll just check and get back to you.
Operator
One last question, sir. If you can help us with what is the occupancy currently in each of the hospitals?
Rohit Madhav Sani
In Kopuli hospital it is almost 90 to 100%. In the Nakpur hospital it is somewhere about 70 to 75, 80%. The Vizag hospital we are about 50% or 50 to 60%. Or the what other hospital we about 30 to 35, 40%. Okay. Okay. Thank you sir.
Operator
Thank you. Ladies and gentlemen, we will take this as the last question for the day. I now hand the conference over to Dr. Rohit Madhav Sani Chairman and Managing Director for his closing remarks. Over to you, sir.
Rohit Madhav Sani
Okay. So I would like to thank you all for taking the time out and attending this call. I am also thankful to each member of Madhubag family as well as our clients, patients, bank, investors, financial institutions and all other stakeholders. For any other queries or information please get in touch with our investor relations team. Thank you.
Operator
Thank you sir. On behalf of Vaidyasani Ayurveda Laboratories limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.
Rohit Madhav Sani
Thank you.