QMS Medical Allied Services Navigates Growth with Strategic Acquisitions and Digital Drive in H1 FY26

QMS Medical Allied Services Ltd (QMS MAS), a prominent player in India's integrated healthcare ecosystem, has reported a robust financial performance for the second quarter and first half of fiscal year 2026. The company, known for its innovative patient screening services and advanced diagnostic medical devices, demonstrated significant top-line expansion, driven by strategic initiatives and sustained demand across its diverse portfolio. For Q2 FY26, QMS MAS recorded a net revenue from operations of Rs 44.7 crore, marking a 20% year-on-year growth. The momentum continued into the first half, with H1 FY26 revenue soaring to Rs 91.2 crore, reflecting an impressive 35% year-on-year increase. While profitability metrics saw a slight dip, management attributed this to strategic investments and pricing adjustments aimed at long-term volume growth and market penetration.

The company's operational execution remained strong, particularly across its B2B pharma partnerships and point-of-care offerings. The product business maintained its positive trajectory, fueled by consistent demand for healthcare and wellness categories, including the flagship Q-Devices brand. Expanding distribution partnerships and a growing presence across QMSMEDS, the government's e-Grameen portal, and other digital marketplaces have further solidified its market footprint. The services vertical, a key growth driver, benefited from deeper engagement with pharmaceutical clients and increasing adoption of structured patient support programs across various therapy areas. The successful integration of Saarathi Healthcare, where QMS MAS holds a 76% stake, has significantly enhanced the company's capabilities and operational scale in this segment.

Strategic Expansion and Digital Integration

QMS MAS's strategic roadmap is clearly focused on leveraging technology and expanding its service offerings. The recent acquisition of a 76% majority stake in Saarathi Healthcare Pvt Ltd, announced on October 29, 2025, is a pivotal move. This acquisition, funded by a Rights Issue, is set to strengthen QMS MAS's leadership in patient and disease management services, covering the full patient journey from diagnosis to recovery. The financial impact of this increased stake is expected to be reflected from Q3 FY26. This integration is crucial for building a truly integrated healthcare ecosystem, as stated by Mahesh Makhija, CMD, QMS Medical Allied Services Ltd.

The company's product segment is bolstered by its own brand, Q-Devices, launched in 2023, which offers a range of medical and wellness devices. This initiative provides QMS MAS with greater control over quality and supply chain, thereby improving margins. The product business also benefits from long-standing relationships as channel partners for leading global brands like 3M, Omron, and Zeiss. On the services front, Patient Support Programs (PSPs) are a key growth driver, with QMS managing end-to-end patient management through proprietary tech platforms. These programs, including the flagship HumRahi program for Lupin, cover chronic conditions like diabetes, hypertension, cardiology, and respiratory, demonstrating the company's ability to manage large, complex, multi-specialty PSPs. In H1 FY26, the company conducted 16,200 B2B health camps, showcasing strong execution and improved field processes.

Future Outlook and Innovation

Looking ahead, QMS MAS remains confident in sustaining its growth momentum. Management anticipates the product business to grow by 10-12%, aligning with the broader pharmaceutical industry growth. The services segment, however, is projected for a more aggressive growth of approximately 25%. The company is actively investing in capability building, technology adoption, and field force expansion, which are expected to lead to improved margins from the next fiscal year. QMS MAS is also integrating Artificial Intelligence (AI) into its processes for analytics and CRM, aiming to become a leader in data-driven healthcare and patient management.

The company's long-term vision includes becoming a one-stop shop solution for pharmaceutical companies for pre-diagnosis, early diagnosis, point-of-care, and marketing activities. Furthermore, QMS MAS plans to explore international expansion, starting with the Asia-Pacific market, leveraging its expertise and integrated solutions. The company's proactive approach to market trends, technological shifts, and regulatory changes positions it as a forward-thinking entity in the Indian healthcare sector, committed to delivering long-term value to all stakeholders.

Conclusion

QMS Medical Allied Services Ltd's H1 FY26 performance underscores its resilience and strategic foresight. Despite short-term margin pressures from investments and pricing adjustments, the company's robust revenue growth, strategic acquisitions, and commitment to digital innovation paint a promising picture. With a diversified portfolio, strong market presence, and a clear roadmap for expansion and technological integration, QMS MAS is well-positioned to capitalize on India's evolving healthcare landscape and continue its trajectory as a trusted partner in medical services and patient journey programs.