PharmEasy reports Rs 5,872 Cr revenue in FY25; burn remains flat

API Holdings, the parent of e-pharmacy and diagnostics brand PharmEasy, reported flat revenue in the fiscal year ending March 2025. However, the Mumbai-based company has cut losses by 38% due to sharp reduction in finance and depreciation costs during the last fiscal year.

PharmEasy’s operating revenue increased 3.7% to Rs 5,872 crore in FY25 from Rs 5,664 crore in FY24, according to the company’s financial statements reviewed by Entrackr.

PharmEasy offers pharmaceutical products, along with diagnostic services and teleconsultations, through its mobile and web apps.

PharmEasy derived about 87% of its operating revenue, or Rs 5,097.5 crore, from the sale of pharmaceutical and cosmetic products, while the remainder came from services such as diagnostics, teleconsultations, delivery, warehousing, and commissions from facilitating pathological tests. 

The firm also earned Rs 108 crore in non-operating income from interest and asset gains, taking its total revenue to Rs 5,898 crore in FY25.

On the expenses side, the cost of materials remains the largest cost centre constituting 67.2% of the total expenditure to Rs 4,844 crore in FY25. PharmEasy’s employee benefit expenses went up by 30%  to Rs 908.4 crore in the last fiscal year as compared to Rs 700 crore in FY24. 

Meanwhile, finance cost also went down 30% to Rs 506 crore while the depreciation and amortization expenses declined 21.7% to Rs 168.9 crore during the year. Contractual payment for delivery associates was another significant cost at Rs 90 crore. Other expenses include legal, professional, sales promotion, and marketing. The company’s overall expenses also remained flat at Rs  Rs 7,208.5 crore in FY25.

While the company’s revenue and expenses remained largely unchanged in FY25, a reduction in exceptional items such as early redemption charges on non-convertible debentures, goodwill impairment and others helped narrow its losses by 38% to Rs 1,572.3 crore compared to Rs 2,533.5 crore in FY24.

PharmEasy’s EBITDA (loss) stood at Rs 553.5 crore while its ROCE and EBITDA margin improved marginally to -13.9% and -15.71%, respectively. On a unit level, Pharmeasy spent Rs 1.23 to earn a rupee of revenue during the fiscal year ending March 2025.

Thyrocare, a diagnostic and preventive healthcare service provider, in which Pharmeasy acquired a majority stake in June 2021, posted Rs 687.5 crore in FY25, a 20% increase compared to Rs 571.88 crore in FY24. During the same period, its profit also grew by 30% to Rs 90.75 crore.

Earlier this year, PharmEasy cofounders Dharmil Sheth, Dhaval Shah, and Hardik Dedhia stepped back from the company, while the fourth cofounder Siddharth Shah exited last month. The parent entity API Holdings has now appointed Rahul Guha, who also serves as the MD and CEO of Thyrocare, as its new MD and CEO.

According to the startup data intelligence platform TheKredible, PharmEasy has raised around $1.1 billion to date from Ranjan Pai’s MEMG, Prosus, and Temasek, among others.

While troubles post acquisition at the firm have been well documented in the media there is no doubt about where it has hurt the most. The broader slump in diagnostic business, from which much was expected post the  covid boom, has hurt most firms that hoped to capitalise. Investors also hoped for a new normal of higher diagnostics penetration, something that hasn't quite come to pass. We believe the worst is not yet over, considering the steady build up of resentment about practices in the Healthcare sector. Be it ownership of major hospital  chains by PE firms, blamed for high costs, or the resentment against health insurance firms, and of course, the deep suspicion of ‘irrelevant’ diagnostic tests, patient antagonism has never been higher.  The chances of heavy handed government intervention by way of expanded price caps on products and services, state level Subsidies or even tougher rules on online distribution of meds remains very high in the near future. That's a lot for firms like PharmEasy to navigate through.