Health X Platform Limited ($HEALTHX)

Hi, everyone, and a very good afternoon. I welcome you all to Health X Platform Q4 and FY '26 Earnings Cum Business Update Call. Please note that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks pertaining to the business. We have on call today, Mr. Banwari Lal Mittal, the Managing Director and CEO; and Mr. Lokesh Agarwal, CFO. So I would like to hand over this call to Mittal sir to proceed with the opening remarks. Post that, we will open the floor for Q&A. Thank you, and over to you, sir.

Good afternoon, dear friends, and thank you for joining Health X Platform Limited erstwhile Sastasundar Ventures Limited Q4 and FY '26 Earnings Conference Call. We sincerely appreciate your continued trust and support as we continue building one of India's most capital-efficient health care platform, focusing on making health care affordable, accessible and technology-driven. Delighted to share that this year, we successfully transitioned to the Health identity reflecting our evaluation from a health care commerce business into a broader health care ecosystem, spanning pharmacy, distribution, digital health care, technology, diagnostic and preventive care. At Health X, we are guided by 4 enduring principle that everything we do, innovation powered by technology, value delivered with efficiency, impact driven by empathy and trust built on authenticity. Our core values being genuine and being child are just not worse on a wall. They are the cultural DNA of the organization. We ensure that every product and service we offer is 100% genuine. And like a child, we remain curious, nondiscretionary, emotionally connected and committed to growing every single day. Before diving into performance, we share a short blip on the company for the new participant at hair. Many of you must be knowing we serve India through 2 powerful and complementary vertical as part of single business ecosystem. Sastasundar App or B2C platform connects consumers directly to genuine medicine, diagnostic and wellness products. We offer real savings counseling by 10 health professionals and AI-driven personalized care. or B2B platform is designed to empower India's retail pharmacies. We give them better margins, complete stock availability, transparent pricing and dedicated support, enabling them to serve their customers with greater efficiency and trust. Together this platform form one integrated ecosystem unified by data, AI and unrelenting commitment to authenticity. Technology remains center to our strategy. We operate through centralized technology-enabled fulfillment infrastructure with over 2 lakh square feet of warehousing capacity, more than double our earlier footprint. AI lead automation across procurement, warehousing, inventory management and order fulfillment is helping us improve efficiency, accelerate delivery time line and create a scalable operating model capable of supporting significantly larger volumes. Coming specifically to FY '26, which was indeed an important year for the company, A major strategic milestone during the year was the launch of Jito, our own certified generic medicine category. Through Health and our extensive pharmacy network, Jito aims to make high-quality health care significantly more affordable by offering medicine at prices up to 60% lower than leading branded alternatives. We believe this initiative has the potential to become an important growth driver by further strengthening our mission of affordable health care. On the segment front, our B2B platform, retailer Satti continues to emerge as one of the fastest-growing pharmacy supply chain platform in India. Since financial year 2019, the business has compounded at nearly 78% CAGR and now serves over 62,000 retail pharmacies by partnering with more than 700 pharmaceutical companies. Our scale, technology infrastructure and deep retailer relationship provide a strong foundation for sustainable long-term growth. On the customer side, our B2B -- B2C platform, continued to demonstrate strong traction with improving customer engagement, repeat purchase and operating efficiencies. Our B2C business remains highly capital efficient, supported by an inventory-light operating model and a working capital cycle of only 18 days, among the best in the industry. Looking ahead, our focus remains on these strategic priorities, accelerating the growth of retailers scaling our consumer health care platform and expanding the digital ecosystem across product and health care services while continuing our investment in technology, automation and platform capabilities that we believe will drive operating leverage and profitability over the coming years. From wellness perspective, I would request you to pay your attention on the fact that we measure our capital efficiency by providing the cost of capital at the rate of 9% and this scale of the business is built upon by total capital deployed, including the cost of capital, only INR 259 crores. Our growth rate, total capital efficiency, consumer experience, technology stake and governance is what we are proud of. We remain confident on our long-term vision and continue to target INR 6,000 crores of revenue by financial year '30, comprising INR 4,000 from B2B retailer Sati and INR 2,000 crores from B2C operations by Sasu, while progressively improving EBITDA margin and maintaining industry-leading working capital efficiency. As you are aware that our Board of Directors have approved a scheme of simplification of corporate structure. The details have been given in a detailed presentation filed with the stock exchange under the scheme. The finance division shall be demerged listed separately in the name of Micro Resources Limited. The existing shareholders will be allocated equity share of the finance division against equity shares held in the Health X Platform. There will not be any change in the existing shareholding of Health X Platform Limited in the hands of existing shareholder. The public shareholder of subsidiary Sastasundar Healthbuddy Limited shall be allocated shares of Health X Platform Limited. The valuations are, therefore, is on the basis of Mirage. We would like to request you to visit our website platform for further information. With this, I would now request our CFO, Mr. Lokesh Agarwal to take you through the detailed financial performance for quarter 4 and financial year ending 31st March '26. Thank you.

Thanks, Mittal ji. So myself, Lokesh Agarwal [indiscernible] INR 70,000 crores equity and around INR 86,000 crores corporate bonds. to. IPO pipeline of around INR 1.5 lakh crores Okay. So I'll take you through the financial performance of the company for the quarter and financial year ended March '26. So during this quarter, we delivered another strong operating quarter, reflecting a healthy top line growth and continuous improvement in our operational metrics. So our revenue from operations increased to INR 356 crores for this quarter, a growth of 22% year-on-year and 4% quarter-on-quarter, driven by sustained growth across both the business verticals, that is B2B and B2C. Gross profit for the quarter increased by 45% year-on-year to INR 26.5 crores, while gross margins improved to 7.3% as compared to 5.9% in the corresponding quarter of last year. This improvement reflects on account of better product mix as well as stronger procurement efficiency and operating excellence across our platform. EBITDA losses has reduced significantly to INR 20 crores as compared to INR 29 crores in quarter 4 of FY '25, representing an improvement of nearly 29% year-on-year, while EBITDA margin improved to negative 5.5% as compared to negative 10.3% in the corresponding quarter of last year. At PAT level, the quarter stood at INR 12 crores as compared to a profit of INR 17.6 crores of quarter 4 FY '25. The variation is primarily attributable to lower other income and exceptional items during this quarter. However, operational performance has been continued to improve with stronger gross profit generation and improving operating leverage across both the businesses. Further, you would notice that the full year FY '26 financial performance has improved substantially. The company reported revenue from operation of INR 1,283 crores, reflecting a growth of 18% year-on-year, driven by steady performance across both our core business segments. Gross profit increased by 36.5% year-on-year to INR 96.5 crores, while gross margin improved by nearly 100 basis points to 7.5% from 6.5% of last year. EBITDA losses reduced significantly from INR 79 crores in FY '25 to INR 65 crores in FY '26 with EBITDA margin improving from negative 7.3% to negative 5%. Improvement in operational efficiency and disciplined cost management supported a sharp turnaround in profitability with the company reporting a near PAT breakdown loss of negative INR 1.4 crores in FY '26 as compared to a loss of INR 133 crores of FY '25. From balance sheet point of view, we maintain a high capital efficiency, wherein our working capital is among the industry best. We maintain 18 days working capital efficiency, representing approximately 5% annual sales, while capital employed is roughly INR 74 crores. We also have a cash balance of approximately INR 30 crores. This does not include our treasury. This is purely cash and FD that is being held by us. So coming back to our working capital efficiency, which is 5% of our annual sales, wherein we still managed to cross INR 1,300 crores in annual revenue. Overall, the performance reflects the company's continued focus on scaling revenue while improving operational efficiency. We remain committed to investing in technology, talent and platform capabilities, which we believe will translate into stronger margin. Thank you. With this, I leave the floor open for queries.

[Operator Instructions] Vedant Shah, you can go ahead. I think Vedant Shah is not there. We will go with Praneeth. Praneeth, you can go ahead.

So I wanted to start with our Jito endeavor right now. So you mentioned that in our presentation that we have done with 15 and we have more in the pipeline. Could you explain how has the reaction been in the market? And what kind of sales are they doing? And have you identified any challenges that you didn't expect when you were going forward with this plan?

Jito, we have launched in both B2B and B2C platform. So there is no negative surprises there is positive surprises and sales are going -- this is the first quarter only. So before the meaningful figures come in, we can discuss for the next quarter. So this quarter is the losing year. So in a few lakhs sales around, say, INR 30 lakhs per month we are doing. So it will take time to build up. But yes, the start is very good.

Sir, this INR 30 lakhs, how is it split between the B2B versus a franchise model?

This is too early to discuss anything. There is no meaningful conclusion can be drawn into this is the second month only. So I mean -- but yes, if you want to divide it, then you can divide it 2/3 is coming from retail, 1/3 from Sasu.

Understood, sir. And one question is regarding our expansion beyond pharmacies itself, like hospitals and other final customers. So how are we on that endeavor? And are we not focusing? What is the situation there?

The hospital business, we are approaching them with our USP of emergency filling in next day. Otherwise, the hospital business according to us is not very profitable. It's a credit-driven business, and we avoid credit. So that is very highly capital-intensive business. But yes, there is a very unique opportunity for us is to fill the stock when they need it because we have the capacity of logistics and fulfillment center next guarantee. So we are approaching all the hospitals to have our backup arrangement. They can take purchase from their regular suppliers. But when they are feeling that the stock is out, supply will take time. There is a very good space, and we think that 5%, 6% of their sales maybe purchases may be rotated to retail. But yes, that's a good area where we started in this quarter. Let us see how this pans out.

Sir, are we planning on offering any credit? Or would it be on the regular cash and carry based only as we are doing right now?

No, we don't have any credit in our system. So whenever they are purchasing, they have to purchase cash and carry basis.

Including for hospital channel also?

Anybody, I mean this will discourage any type of credit because our business we are into platform business. And essentially, we are not into credit business. We are not making an ecosystem, which is based on credit.

Understood, sir. And coming to our AI consulting that we've already indicated in the last commentary. So could you explain what is the market readiness of this product? And how much more time would it take to, let's say, scale up?

This will take time because the consumers are not yet ready because 90% of our customers are not habituated to apply the AI, but we have to be ready because all of a sudden, it will come as a matter of habit. So we have made the product for B2B called retail Air, which will be automated filling centers for our customers in B2B segment and counseling tool in our B2C app, but we are treading very cautiously because any launching and market rollout need a large amount of capital to be deployed. And according to our study, the market is not yet ready. But we are ready. So we will wait for another 6 months before rollout. And once we think that market will respond, we will roll out in a slow fashion. these are very good futuristic things. But before market is ready, you will not need huge capital. And as I have said in my opening space, if you compare all the startup in India and what we did, the total capital deployed, including 9% cost of capital is only INR 259 crores. So we are very, very capital conservative. And when we spend capital, we do it cautiously.

Understood, sir. But you mentioned the fact that we need to have some more like substantial capital that needs to be invested for market ready, right? So how much more capital will we be investing over the next 6 months or a year into this consulting app?

No, we have assigned total investment in our tech stake, including our B2C platform is INR 150 crores. So already around INR 75 crores we deployed, INR 75 more crores will be deployed. That's it. And by that way, our stake will be...

Understood, sir. And one question is regarding expanding beyond medicines itself for distribution, let's say, surgicals and other things that some of our competitors doing. So how do we think about that? And have you any -- are we in any pipeline to scale that business also just beyond medicines?

No, we have already started offering surgical and devices in retail and B2B. We have added nutraceutical category also. So as far as the pharmaceutical and wellness category is concerned, almost all are now available at both the platforms. Now we will expand to Personal Care and Beauty Care that we will do by next quarter. So by 31st December 2026, this will be roll out Beauty Care and Personal Care in our platform.

But sir, let's say, for now, what is the split between, let's say, medicines versus non-medicine revenue in the overall retail split?

So non-medicine right now is very low. It's around 2% only. And we plan to make it by -- within a year to the extent of 10% of our sales.

Got it, sir. And our other expenses have shrunk considerably despite considering the fact that we had like last time onetime experience of expense of not getting a payment. So why has that been this year?

Can you repeat the question?

I was asking what was the reason that our other expenses shrunk this year, from last year?

Decreased. Our other expenses have decreased.

No, other expenses have decreased primarily because of the -- our fulfillment center employees. So the earlier where they were outsourced. So now we have taken in our payroll. That is the prime reason of -- if you've seen there is an increase in employee expenses and decrease in other expenses. So those outsourced employees, we have taken in our payroll to give them good experience of being employed properly so that they have the loyalty towards company, and that is the reason.

So apart from the resilience of them staying with us, is there any other factor that for the change in strategy from contracting to making them in payroll?

The primary reason is that we want loyalty of them because of the large pool is fulfillment center and logistic guy and there is a huge competition from other e-com companies. So the key differentiating point we can make them for them is to give them try to work with the ecosystem so that they can stay and that has paid off very well and our attrition rate is very, very significantly come down to very low. So now they work in our payroll, they feel pride of part of the larger ecosystem.

Got it, sir. And in terms of cost, would this strategy increase it or decrease it? Like how will it do in terms of cost, net-net basis?

Net-net basis, it remains same, but it does not make much difference because the outsourced agency, we give, say, 3% to 4% cost, but that we also incur in our internal administration. So net-net basis, it remains same. It does not impact cost much.

Got it, sir. And in terms of -- we had guidance by the end of the year, we'll turn retail Shakti profitable and Healthbuddy probably next year. So how are we in that journey? So in terms of breakeven, are we on track? Or -- so what is the situation there?

No, no, we are on fully track. Retailer Si is running at almost at the breakeven. And both our business, I must explain that both retail Sati and Sasta business are contribution margin positive. We recover the entire variable cost of fulfillment. So the losses are coming primarily for our tech investments and our advertisement in building brand of Sastasundar and Jo. So both the business are margin -- contributing margin and retailer Satti is covering their corporate cost also. So yes, that has been achieved in the last quarter...

Got it, sir. And last question is regarding our demerged business, Microsec. So what are the exact assets that are getting split between both? I understand that one business will remain for health care and the remaining financial arm and other things are going into Microsec. So could you just give a broad view on what assets are exactly being transferred? Because I think we wanted to merge Ingro also into it. So what exactly are the assets that are getting shifted to that company?

So the entire operating business, including treasury of Sastasundar Health Limited, that is our Metrix subsidiary company will be merged into Health X Platform Limited. So Healthcare business will have both the business treasury of around INR 400 crores as part of the core business P. Microsec Resources will have asset base of around -- subject to exit calculation it will be around INR 140 crores Out of this INR 140 crores, around INR 100 crores will be financial assets in terms of investments and INR 40 crores are at the book value of the real estate. So INR 140 crores will be the asset base of Micro Resources Limited.

And this real estate, it is not for the Healthbuddy, right? Is it what real estate exactly is it?

No, it is not for Healthbuddy, except that one real estate in Newtown Kolkata has been rented to Healthbuddy. So that Health will continue to pay the new company rent. Other than that, those are other surplus assets primarily for investment purpose that we plan to sell in due course.

Next question we have from Moksh.

I'm actually new to the company I wanted to understand that you said in the last question, you are keeping the majority of the treasury part in the company still with the operations. Am I right? Some part of INR 140 crores...

Of around INR 400 crores will remain in operating company and around INR 100 crores will go to Microsec resources.

Okay. So my question was what is the reasoning behind doing this? Why are you separating INR 140 crores into separate company instead of just selling the company and then maybe returning the cash in...

No, treasury we will deploy in the business. The treasury is not a permanent treasury to remain. As we grow, we need investments into our operating business. So we have clearly identified that this 40 crores, we will invest into next round of growth. So once we have an ambitious plan of INR 6,000 crore turnover by 2030, we will need to build additional fulfillment center that we have given in our presentation. There will be additional warehousing coming, there will be need of some working capital. And so yes, those will be -- we have calculated that. And if after 3, 4 years, if we found that there is an excess treasury, then we can return to the shareholders from both the companies in the same way. So keeping -- and then in the operating company in 2 years, there will be some losses. So treasury income get benefit of taxation in the operating company. So we don't need to pay tax on treasury income, while Micro Resources treasury income is taxable. So shareholders has a good amount of tax of around 25% on the income. That is an added benefit of keeping treasury in operating company.

My question was on the line that you are separating INR 140 crores of separate company, I'm not wrong. What is the reason behind demerging that company from this?

So the Microsec Resources demerger will be listed separately. And the Microsec Resources Limited will issue shares to all the shares of Health Platform Limited share against 3 shares held by them.

I got that. I was asking about the reasoning behind the demerger. Why do we need to do that? If I'm not wrong, you said that you wanted to get dispose of those assets, right, in that...

Microsec parts is the corporate office of Micro Res itself and one is the corporate office which has been given on rent to Sasan. So these 2 properties are used in the business. Others are fewer rented, fewer lands, those are valuable properties. So we will sell that and we'll properly capitalize the Micro Resources. So we hope to have a good amount of capital in Micro Resources.

Understood. On the treasury and investments so currently before the demerger, what would be the approximate value of the investments and treasury right now, the entire...

So entire Health X Limited, there are around INR 500 crores treasury INR 400 crores are lying in Health X Limited and INR 100 crores in Micro Resources.

And what would be the average yield that we have generated for FY what is the yield that we have on...

Okay. So yield is around -- we have a very specific policy to generate between 10% to 12% per annum.

And how do we ensure that the amount that we invested, which we are holding it for the long-term growth of the company does not run into losses. So I was going through our investments and there are some unquoted shares investments as well as several of AI that we have invested in private credit institutions and some of -- what is the policy to ensure that those amounts does not result in loss or blocking of...

There is no capital loss. I am from investment banking background. So you must acknowledge the fact that we have built this company very, very low capital. And any capital efficiency business cannot be built upon by playing the state rules of within a framework of that we're going to invest in government, government banks and 7%. So we are -- I myself has been an investment banker. We fully understand this return ratio. And by properly managing the risk, we can improve the yield from 7%, 8% to 10% to 12%. So there is a 4% gap. So on INR 500 crores, then 4% is to INR 20 crores, and that significantly offset the losses. But that we are doing from last so many years, and we don't find anything improper. So within 12% category also, we have a sufficient amount of surety, sufficient amount of security. And the uncoated shares which you are talking are also part of the structured deals. Those shares are only NSE shares. So we made huge profit out of that also. And then there is an arrangement of structured out of that only. So we don't advice on, but you must appreciate the fact that by playing the template investing, we will make only 7% to 8%. And we are a start-up company, we have rather than raising further capital from the investors, we have bought back the shares of Mitsubishi Corporation. So that amount of capital efficiency will not come by playing the template of typical template of investments. We are a business organization. We take certain amount of risk by calculating risk in business operations. So to a certain extent, the major risk we take in treasury management also, not out of the way risk, but second risk, which we understand because we understand fully that treasury how it functions. And therefore, we are managing prudently, and we have cut losses significantly by that.

Understood. Got it. My next question was actually on the lines of NSE IPO. So I was going through the balance sheet and our approximate cost of acquisition is around INR 1,600 per share, while the listing is expected to be a considerable higher amount. What is the...

NSE, we will make around 15% per year annualized return...

I was calculating that we are going to net approximately around INR 95 crores to INR 100 crores once we -- if we cash out of those shares. What is the plan on those...

We are getting good amount of dividend also. So why not some part -- I mean, 5%, 10%, we can invest in such type of deals where we feel 100% there is almost 90% surety of our duty. And if we don't do the surety, then we have to settle for 6%, 7% return. That is not a good call. By that, we measure ourselves cost of capital of 9%, the capital we deploy in the business. It is not a fund to deploy the capital and then wait for ROC. It is the fund not to deploy much capital and make great company.

Totally agree. My next question was on the -- what is the current penetration in the [indiscernible].

Sorry, can you repeat the question, please?

What would be our approximate penetration in the West Bengal and Kolkata market as of date?

You are asking Kolkata share of our business, right?

No, no. I'm asking about the penetration of our company in the markets in the Kolkata and West Bengal.

West market share, we are around -- aiming around 5% to 7% on the different pockets, depending upon the pockets. So we command good market share.

Understood. So my question was on the lines that Kolkata and West Bengal being our home market, if we are able to command around 5% to 7% penetration, what is our strategy for the newer territories that we are getting into like the Ku so to increase our penetration much faster...

Yes. So the Northeast, we are growing by more than 50% year-by-year. And Northern India also, we are growing by more than 25%, 30%, which growth is more than Best Bengal growth. So Northern operation are highly successful. In fact, we have to do the fulfillment center, double the capacity in Noida. And Northeast is also very highly successful. So both the geographies are increasing very rapidly. And we firmly believe that in next 2, 3 years, those geographies will also command 5%, 7% market share without doubt.

Right. I got that part. So my question is the lines are what are we going to do from here on to increase our penetration more aggressively? What are the practices or what are the things that we are doing for that, except for the bigger facility and more faster...

Penetration we can penetrate from the same infrastructure like from West Bengal, we started penetrating in Odisha, Bihar and Jharkhand from here. And from Northern Noida warehouse, we are getting to UP. Now Lucknow, we have started bidding differently. And then entire NCR and Rajasthan, Haryana, those geographies we already supply. From Northeast from Assam, we supply to entire Northeast. So there's no issue of told, but now we are planning further and further going. We are also planning to build 10,000 square feet smaller warehouse to have the repeat filling. -- in nearby towns also. So we are going one by one, not in hurry. We are making very cautious decision in everything what we do. And happy the way the company is going with a cautious approach. And so the growth is coming with the discipline that you can appreciate in our spending and investing.

Got it. My last question was on the line that new fulfillment centers of Lucknow, Udaipur and Patna, they are approximately 2.5 lakh square feet of space. What was the approximate CapEx that went into them? And what was the time that it took for us to go live?

So we are building Udaipur, Lucknow, Patna, Guwahati and additional warehouse in West Bengal. So the total CapEx we have planned of INR 234 crores Out of that INR 150 crores, we plan to take the bank loans and around INR 10 crores we plan to deploy from the...

Next question we have from Vilina Jain.

So firstly, I want to understand from the fulfillment centers, which we have, we recently expanded our capacity. So from the current warehousing and the fulfillment centers, which we have, what revenue scale can we achieve? Like the INR 6,000 crore top line, which we are targeting, can we achieve it from our current base?

The current base from current warehouses...

Yes.

INR 600 crores is difficult. So therefore, we are building another warehouse, Udaipur, Lucknow, Patna and additional warehouse in West Mangal. So we have already started building this warehouse capacity. And we need additional warehouse in Bare definitely or Noida warehouse, we are making capacity double. So around September, we will shift to the new warehouse, which is double than the existing capacity. And we have already planned for INR 6,000 crores revenue. So by including this new capacity, we will be sufficient to service INR 6,000 crores revenue.

Okay. And sir, what would be the CapEx that we will be doing for the expansion?

The total CapEx, as I said earlier, will be INR 424 crores.

Got it. Secondly, sir, you mentioned that we are already contribution margin positive for both the retailer Shakti and Healthbuddy business. Would it be possible to share what percentage margins we are doing there? And what is the gap between the contribution -- what is the cost between the contribution margin and operating margin that is leading to negative EBITDA for us right now?

So we are making the system of that MIS probably from the next quarter, we will disclose to the stock exchange, the rollout of the contribution margin vis-a-vis fixed cost. Right now, those informations, we are -- these are the proprietary tech capabilities. So we don't want to move to disclose to tech public to those information. So from the next quarter, we will be probably able to disclose contribution margin and separately.

Okay. So sir, with the scale, like as we reach INR 6,000 crores top line, as we move towards it, what is the peak operating margins that we can do like when the leverage starts kicking in?

So at INR 6,000 crores, we estimate that our EBITDA should be around 5% and our PAT and cash flow should be 4% of the revenue. So that is the estimate we are giving.

Okay. And you already mentioned with respect to Jo, sir, you did mention that it is relatively newer. But what are we -- what are our targets with the Jo expansion in terms of revenue and margins?

The margins are very heavy because of the fact that these are private brands margin will range from 30% to 40% gross margin. And because this is a private level, so it will take a certain amount of time before we build up. So we have started and the initial response is very, very good, more than what we expected. But little build up, I think from the third to fourth quarter, we'll be able to tell you how it will pan out. It is too early to comment upon that.

Next question we have from Harshit...

Sir, just wanted to understand what ROE are we targeting for next 2 years for FY '27 and '28?

'27, '28 ROE will not much because '27, '28, there may be some negative profits. But for '29,'30, the ROE will be very significantly higher. And we are building a business of around 40% ROE going forward once we achieve the scale.

So any broad range for '29 then?

Yes, '29, we should be making around 3% of the revenue as a profit. So say, in that year, we remain at INR 4,500 around will be around how much? INR 120 crores, but the capital deployed will be hardly INR 300 crores, INR 400 crores. So again, ROE will be very, very high.

Next question we have from Dhairya Trivedi.

Yes, yes. So given that our new warehouses are going to be operational in the current financial year, what revenues are we targeting from retailer Shakti in FY '27?

'27, we don't give the year-by-year guidance because it's very difficult in our business. There will be some quarter-to-quarter difference. But June quarter, I think that because since we have the April, May figures, so June quarter, we must be ending around INR 400 crores. And June quarter, we expect that it will be the best quarter in the company's history and in the card arena, quarter in year '23, '24, when we had the part, in Q3, we had the highest turnover of INR 374 crores. So the current quarter, we estimate to close around INR 400 crores revenue, and that is the best quarter in the history of the company. And that you can stipulate it by giving some growth to the yearly revenue. But as I said that we are in the building space, we are a start-up company. So there will be some quarterly variance. It does not go linear. But definitely, we hope to have a good year by looking to the figure of April, May and June. This is already 12 June, and we are comfortable to close INR 400 crores revenue in this quarter.

Right. So if you just annualize that for 4 quarters and given the fact that we are going to be operationalizing the new warehouse, -- so if all goes well, we should be north of, say, INR 1,700-odd crores for retailers Shakti in FY '27, right?

That you can stipulate, but not a guidance from me because some quarters may vary. But I can say that it will be the best year in the history of the company and both from revenue side and from Jito's margin expansion and both from operating leverage. And I'm pretty sure that we will build a very good company, and we'll be able to showcase in this year, and we are very excited. We have taken a lot amount of innovative initiative last year, and those are resulting a good amount of result in this year. So by Jito, by retailer Shakti, by additional warehouse capabilities. The April, May June results are showing good potential both in terms of sales and profitability. And we hope to do a good year.

Right. And how much EBITDA margin we are sticking to our earlier guidance of 1% for the entire financial year for retail shopping.

Yes, Telecity, yes, yes. That is true.

Okay. Okay. And what's the additional square feet of warehousing space that will go live this year?

So live additional square feet in this year by end of 31st March, it will be around 1 lakh square feet only.

1 lakh additional, right?

Yes, yes.

Okay. Okay. And the current capacity would be how much?

2.5 lakh is the current capacity. By 31st March '27, we will have added by 1 lakh capacity, and we will start making another 4 lakhs. So that will take year-by-year additional capacity. So we will take action to build 5.52 lakh additional warehouse capacity into Udaipur, Lucknow, Patna, Guwahati and Baripur additional warehouse. So total capacity will be more than 8 lakhs, more than 8 lakh square feet.

Right. And earlier, we have given a very aggressive guidance for even Sastasundar. So I mean, how is -- how are things progressing on that front?

Sastasundar is doing very well, and we hope to meet the guidelines.

Okay. Because this year, the growth was rather muted. I mean we didn't see too much of growth in FY '26.

That thing I'm telling you, you need to see from my angle. So please don't see quarter-to-quarter. So if you see -- you measure the company by quarter because last quarter, we transformed our store into store. And that transition takes certain amount of disturbance in sales of branded medicine that happened with every model. But if you take by this year end because the growth has started again coming. So quarter-to-quarter because we all is not a linear company. Please see our company as a start-up company only. We are in a very infancy stage, we will experiment certain things, we will apply technology and then scale, we'll make is slow in one quarter, next quarter because there are only 2 ways of learning, either we deploy huge capital and take the risk of losses more losses or we become a capital efficient and choose to go slow in the experimental stage. So we opt for a second option. So the learning comes at a very negligible cost. And that is the beauty of -- if you see that this type of company in the current year, if I can say that if I estimate INR 1,600 crores, INR 1,700 crores revenue company with profitability, clear profitability, that is bit only by INR 250 crores. If you compare this with other start-up companies, then you can see the massive difference.

Next question we have from Preet Shah.

So, sir, many thanks for taking the first step or simplifying the company, which we have been trying since many years. So now this is a good starting point for us as an investor. So my question is, how do we expect Microsec to be valued post listing? Like what AUM and earning base should investors underwrite?

Microsec, you must take the value of the book value, tangible assets are INR 140 crores revenue basis. So that you can expect right now. And then post that, it depends upon the listing. But today, the valuation can only be measured by the book value. So the book value of Micro Resources is estimated to be around INR 140 crores.

Okay. Okay. Perfect, sir. And how about the AUM like that company handles? Is it something that you can share at this stage of time?

There is no much AUM that company AUM, you must be talking about the PMS license that is not active that we are carrying that maybe that has certain background, but that business was long sold in 2016 only. So that is the license only. there is no AUM as such. But yes, there is a treasury of INR 100 crores of financial assets and around INR 40 crores of the real estate at book value. So that is INR 140 crores is the asset valuation. And based upon that, you can take...

Okay, sir, last question. Sir, do you have any aggressive plan for Microsec because you and Ravikant sir, coming from like a hardcore equity investment kind of a background. So do you have any aggressive plan for Microsec post listing like to revive that as an active AUM or NBFC sort of a company? Or your focus will only be on health care?

Preet, I mean, the health care opportunity in the retail health taken together is so massive that we don't want to dilute my mind or Ravi's mind anywhere else. So from my perspective, I will fully focus on Health X Platform Limited. But yes, the financial service is also a great business. And yes, I have interest, I have certain my heart in financial service also. But we will look certain amount of partnership maybe with some team, some people's team, but that we will look only after this year because this year, we have an ambitious plan of our AI applications. We have the ambition plan of our growth uptick. We are building new warehouses. So there are so many initiatives Jo, we have launched and building Jito's network that we have to make it successful. So there are so many things on the agenda. Another agenda will dilute our management bandwidth. So your answer is no. Right now, we don't have any plans for financial services. We want to fully remain focused on tech business. But we will look into after 31st March 2027 once the demerger process is complete that how can we do so. And if we are not able to do so, then either we get it delisted or we merged this company into another financial service company, but we will not keep the shareholders' value or work into a deadlock position where those are held up in a slow-moving holding company. That is structure we don't like and we don't want to do that, and we don't intend to do this. Either we partner with some people as a team or we get a good exit for the shareholders. That is what our intention is.

Yes. Many thanks, sir, for sharing this insight -- all the best and yes, we are very much excited and see how we are building the company and bringing impact to the health care industry as overall.

No, Preet, you have been always supporting us and we value your contribution. And I firmly believe that we are building a great company in India and people will remember this building. And I mean, apart from solving a bigger issue in the society, a massive economic value add to the shareholders also. So we hope to do great.

Sir, we have full confidence and like the way company grew from INR 20 crores or INR 50-odd number of crores 10 years back all the way to today INR 1,400 crores is commendable achievement under your leadership. And now the way AI is shaping around and we proactively company is investing in this AI platform, that is also like we are very excited to see. So yes, we are very confident, sir. And thanks for all your hard work.

I would like to mention a very important factor that while the others are building their company by purchasing the revenue and deploying the capital, we sold our revenue, we recapitalized the company and then building it. And rather than fresh we bought back the sales. This is how this company has exemplified the capital efficiency apart from innovation.

Completely agree, sir. Like most of the people are -- like our -- the competitor, they are also like they are not considering the rate of debt into all the calculation, which we are from day working on the patient capital cycle. So that is something -- yes, very interesting to see and like at least we are very confident, sir. And the way like you are so proactive and sharing all the insights to young generation and all will always like you are the leader for us. And definitely, we are learning many things from you. So thanks, sir, for...

This was the last question for the call. And thank you for the participation. And now I request the management to give their closing remarks.

So thank you, guys. Hope to together for building one of the great companies in India. We are a start-up company with a great vision. So please go through our website, altexplatform.com and send me your suggestion that how can we improve the shareholders' information in a better manner. My idea is be. Thank you so much.

Thanks.