Vaidya Sane Ayurved Laboratories Ltd Q2 FY2026 Concall Summary

Key Takeaways

• H1 revenue up 19.5% YoY, guidance raised: Revenue reached ₹50.0 crores in H1 FY26, driven by higher patient engagement and wellness product sales; full-year guidance raised to ₹115-120 crores.
• EBITDA jumped 49.6% YoY on operating leverage: H1 EBITDA of ₹8.62 crores at a 17.26% margin reflects better cost optimization and in-house manufacturing, with a target to exit FY26 at 17-18%.
• The model is pivoting to higher-value disease reversal: Average patient billing is now ₹50,000-₹60,000 annually, with 65-70% of patients reversing their disease; this shifts the business from preventive wellness to outcomes-based chronic care.
• Bed capacity set to more than double: Khopoli construction began on the day of the call, and with Nagpur and Vadodara expansions, total beds will reach 250-300 in 12-15 months, targeting 1,000 beds in 2-3 years.
• What to watch next quarter: The pace of new patient additions toward the 1.2-1.3 lakh target, progress on insurance empanelment across hospitals, and whether Madhavprash online sales turn EBITDA-positive.

Strategic Shift: From Wellness to Disease Reversal

• Higher-value patient engagement: The company has moved from preventive wellness programs to year-long disease reversal protocols, with average annual patient billing of ₹50,000 to ₹60,000, a step-up that is driving both revenue growth and margin expansion.
• Clinically validated outcomes: 65% to 70% of enrolled patients reverse their disease, defined as shutting down allopathic medications, normalizing reports, and living symptom-free, with 85% patient adherence to the protocol.
• Patient funnel is the growth engine: H1 FY26 added 60,000-65,000 new patients versus 82,000 in all of FY25; the company expects 1.2-1.3 lakh by year-end and a medium-term target of 2 lakh new patients annually by FY28.
• Clinic utilization is only 45-55%: The major growth driver is driving more new patient footfall into existing franchise clinics, which represent 85-90% of the network and have substantial idle capacity.

Rohit Sane: "about 65% to 70% of patients who actually join us with for the year-long disease reversal process, 65% to 70% of patients reverse from their actual disease. And reversal definition is like shutting down of their allopathic medications plus getting their reports back towards normal with living a symptom-free life."

Hospital & Bed Expansion

• Khopoli construction started on call day: The first break was laid for 100 additional beds on November 7, 2025, with an estimated 12-15 months to completion; the hospital already charges over ₹1 lakh per week.
• Nagpur and Vadodara expansions in pipeline: Nagpur will add 5 beds at an investment of ₹55 lakhs, with construction beginning in 3-4 months; Vadodara is planned to expand to about 100 beds in the coming year.
• Full bed availability by H2 FY28: Combined expansions at Khopoli, Nagpur, and Vadodara will take total capacity to 250-300 beds over the next 12-15 months, with all beds available for utilization by H2 FY28 and a 3.5-4 year ramp-up to over 70% occupancy.
• Six more hospitals planned: Currently at four hospitals, the company is in discussions for six additional facilities, majorly in Gujarat, Maharashtra, and Rajasthan.
• Vadodara Hospital already at 75-80% occupancy: The recently opened hospital has ramped up strongly with 25-30 admissions per month, and occupancy across all hospitals stands at 75-80%.

Rohit Sane: "Today was the day when it was the first break to be laid for the Khopoli Hospital 100 beds extra that we were supposed to start. So today was the day when the puja was conducted. And from today and tomorrow, we will be starting with the whole construction for the Khopoli hospital itself."

International & New Initiatives

• Malaysia MoU signed with no capital outlay: The company will provide clinical protocols and training to Maxura Healthcare under the brand Maxura Ayurveda Healthcare, receiving 30% of profits generated; a separate MoU with Lincoln University of Malaysia covers a Panchakarma center that could convert into a chain of clinics.
• Medical tourism beginning to contribute: The company has started receiving patients from African and GCC countries and is in discussions with tourist agencies to build this channel.
• Urja Neuro Care launched: A specialized neuro care facility focusing on integrative treatments for neurological disorders was approved at an estimated cost of ₹1.8 crores.
• Wellness resort discussions underway: The company is in talks with a hotel chain for a wellness-oriented Panchakarma center, and sees a luxury resort-type model as a possibility once Khopoli ramps up.
• Madhavprash scaling cautiously: The product has 45% repeat purchase, and the plan is to scale slowly for 4-5 months before accelerating, targeting 1 lakh units per month in about 24 months; online sales are expected to turn EBITDA-positive in 3-4 months.
• Ready-to-cook and ready-to-eat formats in development: New food products including breakfast items with protein, low carb, and antioxidant profiles are planned for launch in 4-6 months to enhance retail scalability.

Margin & Operating Leverage

• H1 EBITDA margin at 17.26%: EBITDA rose 49.59% YoY to ₹8.62 crores, with PAT up 28.26% to ₹4.84 crores at a 9.68% margin, reflecting operational discipline and cost optimization.
• In-house manufacturing supports margins: Subsidiaries Dynamic Remedies and UV Ayurgen Pharma now produce proprietary Ayurvedic and nutraceutical products in-house, ensuring quality, availability, and higher margins.
• Long-term margin trajectory: Management is confident of maintaining EBITDA margins above 15% continuously, trending toward 20% by FY28 with PAT margins of 10-12%; at a ₹280 crores turnover, EBITDA could exceed 30-35%.
• Marketing spend to scale prudently: The company intends to increase marketing investment only in FY27, keeping near-term spend disciplined.

Rohit Sane: "If at all, we reach about INR 280 crores of turnover. The overall EBITDA has a potential to go beyond 30% to 35% also."

Insurance & Regulatory Catalysts

• Insurance empanelment progressing: Khopoli Hospital is very close to CGHS approval and fully cashless status; Nagpur, Visakhapatnam, and Vadodara hospitals are expected to complete empanelment with leading insurers in the next 6-7 months.
• Franchise clinic upgraded to hospital: One franchise clinic in Kolhapur upgraded itself into a 5-bedded hospital and is close to securing all insurance approvals, a model that could be replicated.
• Main board listing targeted in 6-7 months: Plans to migrate from the SME platform are charted, with implementation steps already begun; management is "absolutely excited" about the timeline.
• Warrant approval still pending: NSE has raised queries on the preferential warrants, and the company is responding; no funds have been received yet since the 25% upfront payment requires NSE approval.

Rohit Sane: "Yes. So we do have plans about going towards the main board. In the next year, I think we should be absolutely ready to go on to the main board. So the plans have been charted out accordingly and the implementation steps have already begun. So I'm absolutely excited about it so that this target should be possible in the next about 6 to 7 months."

Guidance & Commitments

Key Metrics