API Holdings, the parent company of PharmEasy, Thyrocare, Ascent Health, and Aknamed, reported a significant operational turnaround in FY26. The company delivered double-digit revenue growth while improving profitability across its healthcare ecosystem through better cost controls, working capital management, and operating efficiencies.
One of the biggest highlights of FY26 was the company's return to positive EBITDA, marking an important milestone after reporting EBITDA losses over the previous two financial years.
According to the company's Q4 FY26 investor presentation, FY26 numbers are provisional and unaudited.
API Holdings Q4 FY26 Financial Highlights
API Holdings reported a steady improvement in its financial performance during Q4 FY26, driven by stronger operating efficiency and margin expansion.
The most notable improvement came at the operating level:
Revenue from Operations increased to ₹1,773.5 crore, up 1.92% QoQ from ₹1,740.0 crore in Q3 FY26.
EBITDA more than tripled to ₹33.3 crore, registering a 226.47% QoQ growth, reflecting improved cost optimisation and operating leverage.
Profit Before Tax (PBT) improved significantly to -₹37.4 crore from -₹75.3 crore in the previous quarter, reducing losses by 50.33%.
EBITDA Margin expanded to 1.87%, compared to 0.58% in Q3 FY26, an improvement of 129 basis points, indicating stronger profitability.
Gross Margin improved to 21.0% from 19.4% in Q3 FY26, supported by a better product mix and operational efficiencies. (This represents an improvement of 160 basis points; the percentage point increase is 1.6%, not 16 bps.)
Segment Performance
B2B Distribution Continues to Scale
API Holdings' B2B pharmaceutical distribution business remained the largest contributor to revenue.
FY26 highlights include:
Revenue increased 15.0% YoY to ₹4,089 crore
Gross margin improved to 9.0%
Operating expenses declined 10.9%
EBITDA turned marginally positive at ₹1.3 crore, compared to a loss in FY25
The business also maintained stable working capital while improving operating efficiency through tighter cost management.
PharmEasy (B2C) Shows Continued Improvement
The consumer healthcare business continued to move closer towards profitability.
Key FY26 highlights:
Revenue grew 17.9% to ₹1,334 crore
Gross margin increased to 25.7%
EBITDA loss reduced significantly to ₹39 crore
EBITDA margin improved from -7.6% to -3.0%
The presentation highlights that the B2C business has improved from -16.3% EBITDA margin in FY24 to -1.5% during Q4 FY26, reflecting sustained operating improvements.
Thyrocare Continues to Deliver Strong Growth
Thyrocare remained one of the strongest-performing businesses within the API Holdings ecosystem.
FY26 performance:
Revenue increased 20.6% to ₹829 crore
Gross margin improved to 73.5%
EBITDA rose 33.3% to ₹280 crore
EBITDA margin expanded to 33.8%
The diagnostics business continues to benefit from operating leverage and higher test volumes while maintaining industry-leading profitability.
Aknamed Focuses on Efficiency
Although Aknamed's revenue declined marginally by 2%, the company significantly improved operating efficiency.
Highlights include:
Operating expenses reduced by 64.1%
EBITDA loss narrowed substantially
Working capital improved compared to previous years
Management attributed the improvement to tighter cost controls and better working capital management.
What Drove API Holdings' Turnaround?
Several operational improvements contributed to FY26 performance:
Double-digit revenue growth across key businesses.
Better gross margins through improved product mix and procurement efficiencies.
Lower operating expenses despite business expansion.
Reduced finance costs by nearly 20%.
Improved working capital discipline.
Continued improvement in PharmEasy's unit economics.
Strong contribution from Thyrocare's high-margin diagnostics business.
Outlook
API Holdings enters FY27 with improving business fundamentals. While the company continues to report losses at the profit-before-tax level, the return to positive EBITDA represents an important milestone in its turnaround journey.
Growth across the B2B distribution network, improving performance in PharmEasy, and consistent profitability from Thyrocare provide a stronger operating base going forward. Continued focus on cost optimisation, margin expansion, and working capital efficiency could further strengthen financial performance in the coming quarters..
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FAQs
1. Is API Holdings profitable?
API Holdings reported positive EBITDA of ₹63 crore in FY26, although it continues to report a loss before tax.
2. Which business contributed the most to FY26 growth?
The B2B pharmaceutical distribution business remained the largest contributor to revenue, while Thyrocare delivered the strongest profitability.
3. How did PharmEasy perform in FY26?
PharmEasy's B2C business reported 17.9% revenue growth and significantly reduced EBITDA losses, indicating continued improvement in operating efficiency.
4. What was the biggest highlight of API Holdings' FY26 results?
The biggest milestone was the company's turnaround from an EBITDA loss of ₹231 crore in FY25 to a positive EBITDA of ₹63 crore in FY26, alongside sustained revenue growth.
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