PharmEasy FY25 Loss Declines 40% To INR 1,517 Cr

Online pharmacy unicorn PharmEasy managed to cut its net losses for the second consecutive fiscal year in FY25, reducing its burn for the fiscal by 40% to INR 1,516.8 Cr. The decline in the company’s net losses comes on the back of a substantial decline in exceptional item losses for it in the fiscal.

In FY25, PharmEasy parent API Holdings registered an exceptional item loss of INR 296.5 Cr, down 71% from INR 1,027 Cr in FY24.

While the company marked a significant improvement in its bottom line, its top line remained almost flat. Operating revenue for FY25 stood at INR 5,872.1 Cr, up 3.6% from INR 5,664.2 Cr recorded in the previous fiscal year. Including an other income of INR 107.9 Cr, its total income stood at INR 5,980 Cr, up 4% from INR 5,758.7 Cr in the previous year.

In its board report for FY25, the startup’s directors said that PharmEasy has realigned its focus to improve its EBITDA by “enhancing operational efficiencies and bringing better synergies between its business operations”.

Its strategy includes focussing on improvement in quality, high value profitable segments like diagnostics, selling higher-margin products from its own private label brands, and rationalising its workforce.

“The company concentrated on higher margin customers and foregoing low margin customers and business. As a result, while the revenue growth is 3.7%, EBITDA margins have improved substantially in this fiscal year. Further, the Company maximised utilisation of its existing warehouse facilities, sales infrastructure and marketing spends by driving efficiency and consolidation,” the report added.

PharmEasy’s flagship online medicines business drove its top line in the fiscal year, raking in INR 5,140 Cr. While the segment’s revenue rose a minor 2% from INR 5,047.3 Cr, its loss grew by 7% YoY to INR 837.4 Cr.

On the other hand, the company’s diagnostics, testing and imaging services business’ profitability surged 31% YoY to INR 176.1 Cr. Meanwhile, the segment’s net revenue also zoomed 19% YoY to INR 617.1 Cr

“The diagnostic business grew due to an improved performance of Thyrocare in Fiscal 2025 (grew by 20+%), which was primarily on account of expansion in test menu (1000+) which includes Histopathology, Coagualution, etc and increase in franchisee network (by 1500+ in FY25),” the board report said.

The PharmEasy-owned diagnostics laboratories chain’s consolidated net profit rose 30.6% to INR 90.8 Cr in FY25 from INR 69.5 Cr in the year-ago quarter. Meanwhile, the operating revenue grew 20.2% YoY to INR 687.4 Cr in the year under review.

Earlier last month, PharmEasy stepped down from his CEO role at PharmEasy, retaining his director position. Thyrocare’s managing director and chief executive Rahul Guha succeeded Shah as PharmEasy CEO.

Besides, PharmEasy cofounders Dharmil Sheth, Dhaval Shah and Hardik Dedhia also stepped down from their executive roles during the fiscal. In June, Sheth, Dhaval Shah and Hardik Dedhia forayed into architectural and interior design by launching All Home.

Where Did PharmEasy Spend?

API Holdings’s total expenses remained flat at INR 7,208.5 Cr in FY25 against INR 7,254.8 Cr last year.

Cost Of Material Consumed: Cost under this head increased 15% to INR 188.6 Cr in FY25 from INR 164.5 Cr in the previous year.

Employee Benefit Expenses: The employee cost of the startup rose 30% to INR 908.3 Cr in the period under review from INR 699.3 Cr in FY24. While the salary paid to employees was cut by 11% YoY to INR 384.8 Cr, employee share based payment expenses rose by 117% YoY to INR 482.2 Cr.

Marketing Expense: The startup’s marketing expenses also increased 24% in FY25 to INR 61.7 Cr in the period under review from INR 49.9 Cr in FY24.

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