API Holdings, the parent entity of e-pharmacy and diagnostics brand PharmEasy, has achieved a significant reduction in losses, cutting them by 51% to ₹2,533.5 crore in FY24. However, this was accompanied by a 14.8% decline in revenue, which dropped to ₹5,664 crore from ₹6,644 crore in FY23.
PharmEasy generates the majority (88%) of its operational revenue from selling pharmaceutical and cosmetic products. The remaining revenue comes from services like diagnostics, teleconsultations, deliveries, warehousing, and commissions on pathology tests. Additionally, the company recorded ₹94.6 crore in non-operating income from interest and asset gains, bringing its total income to ₹5,758 crore for the fiscal year.
On the expenditure front, material costs formed the bulk, accounting for 67.3% of total expenses, amounting to ₹4,880.3 crore—a 14.8% reduction. Finance costs increased by 9.4% to ₹727.9 crore, while employee benefits, including ESOP costs of ₹221.8 crore, totaled ₹699.3 crore. Other notable expenses included ₹78.7 crore for delivery associates and additional legal, sales promotion, and marketing costs. Overall, total expenses fell by 19.2% to ₹7,254.8 crore from ₹8,974 crore in FY23.
Thanks to its cost-cutting measures, PharmEasy improved its cash outflows by 91.8%, reducing them to ₹61.13 crore. However, the company’s accumulated losses rose to ₹13,352 crore by the end of FY24.
PharmEasy’s EBITDA loss stood at ₹552 crore, with an EBITDA margin of -9.59% and a ROCE of -15.71%. The company spent ₹1.28 to earn a rupee in FY24. On the brighter side, its current assets grew by 37.1% to ₹3,476.2 crore, and its cash reserves surged by 69.4% to ₹328 crore.
The Mumbai-based company has raised $1.1 billion in funding to date from investors like MEMG, Prosus, and Temasek. Earlier this year, it secured $216 million at a post-money valuation of $710 million. However, global asset manager Janus Henderson significantly reduced its valuation to $458 million in September 2024.
Although PharmEasy filed for an IPO in November 2021, it withdrew its application due to adverse market conditions. Nearly three years later, its public listing plans remain uncertain.