MedPlus Health shares tumble 16% after Q1 profit falls 21% YoY. Should you buy, sell or hold?

MedPlus Health Services shares tumbled 16% after the company reported a 21.7% year-on-year drop in Q1FY27 consolidated net profit to Rs 33 crore, despite revenue rising 21.9% to Rs 1,880 crore. Profitability missed expectations with gross margin contracting 163 basis points and operating EBITDA declining 11% YoY, nearly 29% below Nomura's estimates, driven by weaker private label contribution and rising franchise mix. Despite the weak quarter, Nomura retained its Buy rating with a target price of Rs 1,190, citing long-term store expansion potential; the board also approved capex of about Rs 155 crore across a Hyderabad food park and a concierge health facility.