IKS Health announced strong Q2 FY26 results, with revenue reaching INR781 crores, a 22% year-on-year increase and 5.5% quarter-on-quarter growth. EBITDA grew by 43% year-on-year to INR272 crores, representing a 35% margin. The company reported EPS of INR10.8 and highlighted significant progress in AI integration and platform expansion, driving both top-line and bottom-line growth. They are ahead of schedule on AQuity margin transformation.
Financial Highlights
IKS Health reported a strong financial performance for Q2 FY26:
- Revenue: Increased to INR781 crores, up 22% year-on-year and 5.5% quarter-on-quarter.
- EBITDA: Reached INR272 crores, a 43% year-on-year increase, with a margin of almost 35%.
- PAT: Stood at INR181 crores, representing a 60% year-on-year growth and 19% quarter-on-quarter growth.
- EPS: Reported at INR10.8 for the quarter.
- Operating Cash Flow: INR291 crores.
- Free Cash Flow: INR225 crores, with a yield of 124%.
Net debt continued to decrease, reaching INR412 crores for the quarter.
Key Growth Drivers
The company’s performance was driven by:
- Continued transformation of the AQuity delivery model.
- Leveraging AI in its business model, accelerated by the addition of a new Chief AI Officer.
- Growth in top customers; top 10 customers now comprise 45% of revenue.
Strategic Developments
IKS Health highlighted several key strategic developments:
- Expanded partnership with AdventHealth, one of the largest health systems in the U.S.
- New partnerships with Revere Health (largest independent medical group in Utah) and the Jackson Clinic (Tennessee).
- Continued progress in transforming its human-led model to an AI-native platform.
- Recognition by Google Cloud.
Market Outlook
IKS Health operates within a large and growing market, with the physician segment representing a $5 trillion market overall. The company’s total addressable market (TAM) is now over $260 billion and is growing at approximately 8% annually. The outsourced TAM is growing even faster, at around 12%.
Focus on AI and Technology
The company is focused on further integrating AI to create an interconnected platform, aiming for nearly 80% autonomy in its processes. Investments in R&D have increased, with spending on the EBITDA line growing from 3.5% to nearly 5% year-on-year. They launched the industry’s first encounter-to-reimbursement platform, integrating autonomous clinical documentation with patient financial clearance, coding, and RCM workflows.
Guidance
IKS Health reiterated that it would not be providing specific revenue or earnings guidance due to the early stage and dynamic nature of the market. They will continue to focus on strategic growth initiatives and disciplined execution.
Source: BSE
