I was recently reading about Sastasundar Ventures.
Company operates in fast growing Online Pharmacy (B2B and B2C) segment. In the past, the company had a joint venture with Flipkart; the same has ended now and the company has started its own app.
The management has set an ambitious target of Rs 6,000 crore sales by 2030 against current TTM sales of around Rs 1,150 crore.
Below, we have shared our notes from the Q2 FY 26 con-call of the company to understand the outlook for the business.
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Sastasundar Ventures – Q2 FY 26 concall notes
Consolidated Financial Performance
- Revenue from Operations: Rs 307.9 Cr
• +16.9% YoY and +10.6% QoQ, reflecting strong execution and platform growth. - Gross Profit: Rs 22.9 Cr
• +34.2% YoY and +9.8% QoQ
• Gross margin improved from 6.5% to 7.5% (+100 bps YoY). - Company continued its focus on capital-efficient growth, automation, and expansion in B2B & B2C healthcare distribution.
Segment Performance
- A. RetailerShakti (B2B)
- Revenue: Rs 267.8 Cr in Q2, ~13% YoY growth. Sastasundar concall
- EBITDA breakeven already achieved; expected to be EBITDA positive from Q4 FY26.
- FY27 outlook: 1% EBITDA margin for full year.
- Retailer base: 40,000+ retailers; targeted addition: ~15,000 retailers/year.
- Working capital highly efficient at ~20–25 days, expected to further reduce. Sastasundar concall
- Warehousing capacity being expanded in Lucknow & Udaipur; Noida warehouse being doubled with automation.
- B. SastaSundar (B2C)
- Revenue: Rs 39.4 Cr, up ~60% YoY.
- Strong growth due to returning customers and app migration.
- Company expects to reach Rs 500 Cr annual run-rate in 18 months (by Q4 FY27).
- Target in near term: Rs 100 Cr quarterly revenue by Q4 FY27.
- HealthBuddy network: 260 active, plan to reach ~360 by Mar 2026.
- EBITDA positive expected only by FY29-FY30, but contribution margin positive in FY27.
Strategic & Operational Highlights
- Corporate Structure
- Completed partial buyback of Mitsubishi’s stake; parent holding in SHBL increased from 72.14% to 78.89%.
- Merger/Demerger scheme to be placed before the board by Mar 2026.
- Launch of JITO Generic Brand
- Branded generics introduced offering up to 60% customer savings.
- Current traction: ₹20 lakh/month run-rate.
- JITO Clinics launched with AI-assisted nurse + doctor consultation + diagnostics.
- Company aims to make chronic care affordable at ~₹200/month (doctor + test + medicine).
- Automation Initiatives
- Warehouse automation (Baruipur, Noida) increasing capacity by 2–3x with minimal capex.
- AI adoption implemented in:
• order picking,
• labeling,
• call-center automation (50% manpower reduction),
• logistics route optimization,
• software development (AI-assisted coding). - Fulfilment capacity expected to double post-automation.
- Category Expansion
- Expanding into personal care, beauty, surgical, nutrition, pet care.
- New beauty channel “Mobat” being launched within the SastaSundar app.
- Provides Warehouse-as-a-service (WaaS) & Software-as-a-service (SaaS) options for external brands.
Financial Strength & Capital Allocation
- Group treasury across subsidiaries: Rs 565 Cr (Rs 445 Cr in SHBL + Rs 120 Cr elsewhere).
- No external capital required for at least 5 years, as per management.
- Annual treasury income (~₹40–50 Cr) expected to fully fund:
- tech investments
- automation
- marketing
- corporate overhead.
- Working capital at 6–7% of revenue, targeted to reduce to 3–4% in 3–5 years.
Long-term Vision (FY30 Target)
- Total revenue: Rs 6,000 Cr
- RetailerShakti: Rs 4,000 Cr
- SastaSundar B2C: Rs 2,000 Cr
- Target 4–5% EBITDA margin at scale.
- ROCE goal: 50–60% over next 4–5 years.
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Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
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