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MedPlus Health Services MD and CEO does not expect to restart its concierge and wellness service in the foreseeable future. He said the issue is management bandwidth rather than capital, and the market response also weighed on the decision.
By Alpha Desk September 21, 2026, 12:53:00 PM IST (Published)
The pharmacy chain of MedPlus Health Services is looking at pausing its plan for an integrated radiology and biochemistry lab network and will instead open standalone labs in Bengaluru and Chennai, MD and CEO Gangadi Madhukar Reddy said.
He also said store expansion and earnings are on track.
The pause follows a shortfall in subscribers for the Hyderabad diagnostics business. "Regretfully, I am having to pause this also for now," Reddy said.
Each new lab will cost about ₹5 crore to ₹6 crore. MedPlus already has one lab in Chennai and will likely add one in Bengaluru. Reddy said the company remains on track for 800 stores by the end of this year.
Meanwhile, he said this quarter's earnings will recover: "This quarter, I think we'll be back."
What the original plan looked like
MedPlus started the diagnostics business on a pilot basis in Hyderabad in 2022 and deferred its expansion to February 2024. The network cost about ₹110 crore to ₹120 crore and could serve Hyderabad's 10 million people.
MedPlus shares traded at ₹655.40 at 10:54 am on the NSE. The company has a market capitalisation of ₹7,869.58 crore. The shares have fallen more than 19% over the last year.
Reddy had planned for 5 lakh subscribers paying at least ₹1,000 a year each, which would bring in ₹50 crore annually. He said that money would be profitable because customers pay for the services they use. MedPlus has around 2.2 lakh customers, so far. The business is profitable and gaining market share, he said.
Concierge and food park plans
Reddy said MedPlus does not expect to restart its concierge and wellness service in the foreseeable future. He said the issue is management bandwidth rather than capital, and the market response also weighed on the decision.
The company has also parked a plan to buy a small piece of land in a food park. MedPlus wanted to set up a unit for in-house use to secure supply of cold-pressed oil. It believes it can sell more than 2 lakh bottles a month across its stores. Reddy said the company has found other ways to source the product.
Possible sale of diagnostics unit
Analysts asked whether MedPlus would sell the diagnostics business to listed or private equity-backed diagnostics companies looking to grow through acquisitions. Reddy did not rule it out. "We always look at everything which is on the table out there," he said.
Earnings
Reddy said private-label sales are going according to plan. Last quarter's earnings before interest, tax, depreciation and amortisation, a measure of operating profit (EBITDA) came in well below the company's expectations. He said the market reacted to that miss.
For the full interview, watch the accompanying video
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