API Holdings, the holding company of Pharmeasy, has released its investor presentation with business performance for the 9 months of FY 2026 till Dec 25. While the 9-month revenue and profits show a huge turnaround, most of the operational change is concentrated in Q2 FY 26.
Let’s analyze the latest financial performance of API Holdings in this blog:
9M YoY Financial Breakdown (9M FY26 vs 9M FY25)
Particulars | 9M FY25 | 9M FY26 | Change (Rs Cr) | Change (%) |
Revenue | Rs 4,441.5 Cr | Rs 5,095.5 Cr | +Rs 654.0 Cr | +14.7% |
Gross Margin | Rs 821.1 Cr | Rs 990.3 Cr | +Rs 169.2 Cr | +20.6% |
GM % | 18.5% | 19.4% | +0.9% | — |
EBITDA | Rs -148.2 Cr | Rs 29.2 Cr | +Rs 177.4 Cr | +119.7% |
EBITDA % | -3.3% | 0.6% | +3.9% | — |
PBT | Rs -565.7 Cr | Rs -350.9 Cr | +Rs 214.8 Cr | +38.0% |
A) Around 15% Revenue Growth
On a 9M Yoy basis, revenue has increased by almost 15% from Rs 4,441.5 Cr to Rs 5,095.5 Cr, which signals a jump in yearly operations and steady growth
B) 20% Growth In Gross Margin
In the 9 months of FY26, gross margin increased from Rs 821.1 Cr to Rs 990.3 Cr, which is a 20% jump, similar to the growth in revenue.
C) EBITDA & EBITDA Margin Turnaround
EBITDA saw a massive turnaround, from a negative Rs 148.2 Cr to a positive Rs 177.4 Cr, a 119% boost. The EBITDA margin also improved from -3.3% to 0.6%. Thus, API holdings are getting a real turnaround in operations.
D) 38% Jump in Profit Before Tax (PBT)
PBT improved by Rs 214.8 Cr from a loss of Rs 565.7 Cr in 9M FY25 to a loss of Rs 350.9 Cr in 9M FY26.
So the losses are shrinking but still present overall in FY26. Let’s check where the major turnaround happened in the quarterly financial analysis of API holdings.
API Holdings FY26 Quarterly Comparison
Particulars | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q2 vs Q1 | Q3 vs Q2 |
Revenue | Rs 1,591.4 Cr | Rs 1,764.1 Cr | Rs 1,740.0 Cr | +10.9% | -1.4% |
GM | Rs 307.2 Cr | Rs 345.4 Cr | Rs 337.7 Cr | +12.4% | -2.2% |
GM % | 19.3% | 19.6% | 19.4% | +0.3% | -0.2% |
EBITDA | Rs -12.8 Cr | Rs 31.8 Cr | Rs 10.2 Cr | Turnaround | -67.9% |
EBITDA % | -0.8% | 1.8% | 0.6% | +2.6% | -1.2% |
PBT | Rs -145.4 Cr | Rs -130.2 Cr | Rs -75.3 Cr | +10.4% | +42.2% |
A) Stabilised Revenue Trend
From Q1 to Q2, revenue grew by almost 11% from Rs 1,591.4 Cr to Rs 1,764.1 Cr. But in Q3, this stabilised with no growth and a minor decline to Rs 1,740.0 Cr.
B) Gross Margin trend similar to revenue
From Q1 to Q2, gross margin increased by 12% from Rs 307.2 Cr to Rs 345.4 Cr. But in Q3, this stabilised with no growth and a minor decline to Rs 337.7 Cr.
C) Q2 EBITDA Turnaround, Decline in Q3.
Q2 FY26 saw a major turnaround with EBITDA moving from a negative Rs 12.8 cr to a positive Rs 31.8 cr. But Q3 saw a major drop as EBITDA went down to Rs 10.2 cr. This means that API holdings' profitability has begun, but it lacks consistency.
D) Losses Recover Despite EBITDA Drop
In Q2, the PBT improved by 10% from a loss of Rs 145 Cr to a loss of Rs 130 cr. In Q3, the loss further reduced to 75 crore. This 42% recovery in loss is not due to the operating income (EBITDA), likely due to lower finance cost or some non-operating adjustments
What Can We Conclude From API Holding Results?
The 2nd quarter of FY '26 looked like a breakout period where operations got turnaround and the company entered profitability. But these operating profits are not consistent yet, posing some doubts on API holdings operations. We can consider it a transition phase with instability.
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