• Store network expansion: MedPlus continues to target the addition of around 800 stores, with costs estimated between ₹25 to ₹30 lakh per store across company-owned and franchise locations.
• Concierge medicine pilot: The company is investing slightly over ₹100 crore to pilot a membership-based concierge healthcare and diagnostic center in Hyderabad, with further expansion dependent on board-approved performance metrics.
• Operating margin compression: Operating margins declined to 7.1% in Q1 from 8.5% YoY, impacted by supply disruptions affecting private-label packaging, a temporary sales pivot toward branded goods, and a nearly 50% wage increase in Karnataka.
• Margin recovery strategy: Management views the private-label margin hit as temporary and has reduced customer discounts by 1% on key schemes to counter wage inflation and recover performance over the next three quarters.