Aakaar Medical Technologies Ltd (AAKAAR) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Go India Advisors): Ladies and gentlemen, good day, and welcome to Aakaar Medical Technologies H1 FY '27 earnings conference call, hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone telephone. I now hand the conference over to Ms. Saumya Chhajed from Go India Advisors. Thank you, and over to you, ma'am.
Saumya Chhajed (Go India Advisors): Good evening, everyone, and welcome to H1 FY '27 earnings call of Aakaar Medical Technologies Limited. We have on call with us, Mr. Dilip Meswani, Founder and Managing Director, Dr. Rahul Savakhande, the Chief Executive Officer and Director, Mr. Rakesh Parekh, the Chief Financial Officer. We must remind you that discussion on today's call may include certain forward-looking statements
Saumya Chhajed (Go India Advisors): Thank you, and over to you, sir.
Dilip Meswani (Aakaar Medical Technologies Ltd): Good evening, everyone. I am Dilip Meswani, Founder and Managing Director of Aakaar Medical Technologies. Welcome to our H1 FY '27 earnings call. On behalf of the board and entire Aakaar team, thank you to our investors, partners, doctors, and customers for your continued trust and support. This year is a special one for us. In July, at our flagship FAHA conference, we celebrated 13 years of Aakaar's journey and 1 year of our listing on NSE Emerge. Looking back, what I am most proud of is not any single year, but our consistency of being profitable for 10 consecutive years. Over the last 4 years alone, revenue has grown 3.4 times, from about 19.5 Cr in FY '22 to 66 Cr in FY '26, and PAT has grown from 1.7 Cr in FY '17 to 6.6 Cr in FY '26. Coming to the first half of FY '27, revenue stood at 43.99 Cr from 25.3 Cr in H1 FY '26, and PAT was PAT is 3.54 Cr against the loss of 0.8 Cr in H1 FY '26. In simple terms, the business has turned around decisively on year-on-year basis. What helped us move up? Three things: first, the momentum and execution and discipline. We rebuilt in the second half of FY '26 carried into this half with procurement now tied to confirm orders and demand visibility. Second, a wider and deeper doctor base, which has grown from 6,000 300 grown to 6,300 doctors and practitioners. And third, stronger portfolio with our brands and contributing almost 14.9 Cr, which is 34% of our revenue, already 2/3 of last year's full year own brand revenue. I will be candid that margins are lower than very strong second half of FY '26. This reflects two deliberate choices: higher marketing spends to build customer awareness behind our B2B channel, and the move to distributor billing from August. Both are investments in the quality and scale of the business, and Dr. Rahul will explain them in detail. Over the last year, we have made changes on every front, which our CEO will discuss in detail, but on distribution, we are moving from direct billing to a stockist-led model. On products, we have added five international launches. And on the ecosystem, we have launched Zellix, a brand based on DODO model, which is doctor-owned and doctor-operated aesthetic platform. We have been very successful in Zellix platform, and Dr. Rahul is going to explain in detail about it. On education, our MAICA workshops and FAHA conference make Aakaar a partner in how doctors learn and practice aesthetics. And on discipline, we are tightening credit, procurement, and costs. Our vision is simple, to build India's leading integrated medical aesthetic platform, one that brings together the best global and own brand products, a widest doctor and clinic network, and a growing clinic ecosystem through Zellix. About 92% of our revenue is recurring, and with a field force that remains at around 120-plus people, we believe this model can deliver strong growth with operating leverage over the coming years. With that, I hand over to our CEO, Dr. Rahul Sawakhande, to take you through the business in detail. Thank you.
Rahul Savakhande (Aakaar Medical Technologies Ltd): to get to come back to profitability in H1. equally, the period reinforced an essential priority for our next phase of our journey, ensuring that the growth converts into sustainable margin. We are focusing on strong cash generation and ensuring enduring shareholder value. Like Dilip sir said, our overall sales stood at Rs. 43.99 crores and profit after tax at Rs. 3.54 Rs. 54 crores. In the first half, majorly, we have invested to a tune of Rs. 3.4 crores in marketing vis-a-vis the last year full year spend of Rs. 2.76 crores. So, we have invested slightly more money in marketing this year and also we have tried to improve our direct-to-doctor business overall by increasing activities like FAHA, the the flagship conference that we are organizing on our own self. It would be a yearly activity that would be conducted henceforth. We continue to do conferences like Mica Master Class in Contouring Aesthetic engaging doctors. Aakaar overall if you have gone through our RHPN other details, we have a very big doctor base that we cover through dedicated 100 plus executives in the market and 40 plus managers. Last year, we billed around 6,300 plus customers. In this first year alone first year first half alone, we have billed around 4,700 plus customers and we are looking to close the year at least to 8 to 9,000 customers we bill or we will also try and on we will also try to increase per doctor productivity and per brand incremental sale. For us, the the area of focus of growth has been Aakaar brands. But in the first half, typically we saw that there was slightly more pull towards the imported brands and our ratios are slightly lower for Aakaar brands at 34% vis-a-vis the last full financial year which stood at around 38-39%. That slightly impacted our overall gross margins, but we look forward to increasing revenues from Aakaar brands, also. The brands like DRS 1512, AetheLux Nucleotide are getting well established in the Mesotherapy category. Our brand Aethelum especially the IV glutathione range and the skincare range is doing well. The brand Swaayada is picking up. Baalback has started doing well. We as a business have been focusing on recurring revenue. If you see our last year closer financials, 93% of our revenue came from recurring business. The ratios remain more or less same. However, with the addition of a brand like FotoFinder which is a dermatoscope or trichoscopy device, we are looking at slightly higher revenues from medical device business and this ratio could be slightly changed changed at the end of year depending on the the sales that happen. However FotoFinder skin specifically device has a recurring revenue from the subscription model. But we are looking at slightly higher sales of DermLite brand which currently doesn't have subscription, but in future it will have. So, again the ratios might change, but our overall impetus is on selling products and devices is that has some sort of recurring revenue. Our priority towards increasing doctor base keeps growing. For this current financial year, we have not taken any headcount growth and any further expansion in territory. However, we have relocated and rearranged the team at certain headquarters to improve productivity. We are also looking at rearranging the divisions and portfolio in the coming year to improve per brand productivity and per brand focus.
Rahul Savakhande (Aakaar Medical Technologies Ltd): towards distributor led model, and currently we have already appointed 40 plus distributors across India and we are looking to keep expanding this distributor network at least to 100 in the coming two years, so that our last mile delivery improves. Also, our major business was is B2B, and the doctor stock keeping increases our debtor days and that's one problem that we are seriously looking at and we want to improve on that. And we want the payment collection to be done within stipulated time. Internal intention is to reduce it to close to 130 days, but at doctor level we are pushing at 60 days so that the average comes down to 130 to 150 days in the coming financial, closure of financial year or H1 latest, next year. So, the distributor would be held responsible for making payments to us in lieu of the sales that happen. So, that's the reason we are looking at smaller billings to doctor and better return on, better coverage of business and better collections in the future. In terms of portfolio expansion, this year we launched Letibot, the US FDA approved Botulinum Toxin, that started doing well and it is we are looking forward towards great return on investment with Letibot in times to come and we are targeting the market of Botulinum Toxin that is Botox. And our local competition also comes from brand Gufic, where Gufic is slightly having advantage in terms of pricing because of local manufacturing. But we are targeting the 75% of market and taking market share from that from Botox. Then we have launched Fotofinder, of which I have already discussed regarding the Dermlite and dermoscopy device skin and the trichoscopy. We are seeing great feedback and sales in this this portfolio and we are looking forward for incremental sales in the Fotofinder range. The Fotofinder medicam and Fotofinder ATBM, the higher value devices could add to our revenue, though there is less recurring revenue there, but it could add to our top line and there are few deals in pipeline which we can close and which will help us achieve our numbers for the year. Forward looking ZELIX, we started onboarding doctors since last quarter last financial year and I'm happy to tell you that as on date, we have 70 plus onboarding already happened and we have started the ZELIX clinic web page, Instagram handle and the Facebook handle, and we have already started doing a softer launch of digital marketing and paid marketing, and we want to improve and increase the footprint by using doctors' educational videos to influence customers and improve direct-to-consumer brand image of Aakaar products, and also of doctors. And one of the biggest area of focus has been to increase the aesthetic market by increasing consumer awareness and Aakaar has taken forefront like being the first medical aesthetic company. We thought, why not we take front runner position in terms of doing direct-to-consumer marketing of aesthetic services, and then onboard doctors who will fulfill the services. We look forward to having sizable revenue from these customers soon. We are eyeing 100 customers onboarding and once 100 customers are onboarded, we would go slightly aggressive on performance marketing spend and then generating leads and and recognizing revenue from the onboarded clinics. So, that's the idea going forward. On terms of scientific education, we have already done 75 plus workshops and we have attended almost 20 plus conferences to increase doctor-centric approach to improve our image and
Rahul Savakhande (Aakaar Medical Technologies Ltd): our our overall customer base stands at around 12,000 where we have already built the customer at least once. So, it's a huge customer base. We just need to improve per doctor productivity and per brand productivity to improve our sales. So, looking forward I am very confident that we would again be on path of recognizing our CAGR of 35 plus percent. 30 plus percent rather. But as of now the CAGR is around 36% and we we will remain to be profitable year-on-year. But we want to increase our profitability this year and we are eyeing a sizable growth of profit from here for closing of the next financial year. Thanks and I handover to Rakesh for his keynotes.
Rakesh Parekh (Aakaar Medical Technologies Ltd): Yeah. Hello everyone. This is Rakesh Parekh CFO, Aakaar Medical Technologies Limited. I will go through the numbers and then we can start with the question-answer sessions. For H1 '27, H1 financial year '27 revenue from operations is Rs. 43.72 crores, which is up by 72.64 on year-on-year basis. And that is from 25.3 crores that is of September '25 and it is 5% over that is H2 '26, that is March '26. EBITDA presently is 5.5 5.59 crores for September '26 and giving a margin of 12.71 compared to ₹2 lakh of September '20 September '25. PAT for September '26 is 3.54 crores giving the margin of 8.05% and against which there was a loss of 80 lakhs in last year that is September '25. Compared with the H2 '26 that is March '26 margins are lower because the higher marketing spend and the distribution transition. Gross margin stood at 51.39 in H1 '27 that is September '26, compared with 57.88 for March '26, supported by the rising share of own brands. Debtor days presently are 219 days for September '26 compared with 206 days for March. And we are concentrating on bringing down this this number of days, debtor number of days. We are working on this drastically. And that is our first priority. Cash and cash equivalent stood at 1.05 crores, compared with 16.2 crores of March '26. That is all from my side. We can start with the question-answer sessions. Thank you.
Moderator (Go India Advisors): Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may please enter * followed by 1 on their touchstone telephones. If you wish to remove yourself from the question queue, you may enter * followed by 2. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Hitesh from Shree Hinglaj Enterprises. Please go ahead.
Hitesh (Shree Hinglaj Enterprises): Thank you for opportunity, ma'am. Where do you see Aakar in the next 2-3 years in terms of revenue scale? Are you planning to be a plan pan-India brand or also looking at exports and your own manufacturing?
Rahul Savakhande (Aakaar Medical Technologies Ltd): So, Hitesh, this is Dr. Rahul. Obviously, own manufacturing currently requires capacity utilization, and currently, third-party or loan license is more cost-effective for us. We we have been a marketing company with skills in marketing and sales. So, for now, we are we are focused on sales and marketing. But obviously, we are looking at if there is an unique proposition especially of manufacturing something which is unique and which we don't want to part our ideas with the manufacturers, then surely we will look at manufacturing. Also in terms of global expansion, we are already working on that and I think we will keep you posted on that. In terms of forward-going revenue, internally, our first aim is to be on main board in next 3 years and
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