API Holdings, the owner of PharmEasy, is exploring a merger with its listed diagnostic subsidiary Thyrocare Technologies. According to reports from ET Now, the merger plan would allow both firms to streamline group business operations and bring their key brands under a single operating company. API Holdings currently owns a controlling 51% equity stake in Thyrocare, which it acquired in 2021 to expand into diagnostic services. The company operates a technology-enabled healthcare platform through its PharmEasy marketplace and group businesses, including Retailio 1P for B2B distribution, Aknamed for hospital distribution, and PharmEasy Labs for diagnostics services.
An API Holdings spokesperson stated that there are no such plans under evaluation or consideration at this stage, and the company does not respond to market speculation. As reported by ET Now, any such merger would require a majority of the minority vote from Thyrocare shareholders. The company noted that when evaluating such decisions, it will be shared with all shareholders through appropriate channels for their affirmation.
API Holdings borrowed ₹2,200 crore from lenders including Kotak Mahindra Bank and JM Financial Products in 2021 to partially fund the Thyrocare acquisition. According to ET Now, the company became debt-free in August after repaying ₹1,050 crore of outstanding debt, funded from proceeds of selling around 9.9% equity stake in Thyrocare by erstwhile founder Docon. This repayment also released the pledge on remaining Thyrocare shares held by Docon, helping API acquire unencumbered shares following Docon's merger.
API Holdings reported consolidated FY26 revenue of approximately ₹6,869 crore, representing a 14% year-on-year increase from FY25's roughly ₹6,010 crore. As reported in the company's annual report, the firm achieved its first-ever positive EBITDA of ₹62.5 crore in FY26, reversing an EBITDA loss of about ₹231 crore in the previous year. The company's management had prioritized improving gross margins and cutting costs across the PharmEasy platform during FY25, resulting in broadly flat revenue growth while narrowing losses.
