Max India Ltd
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Q2-2026 Earnings Call
AI Summary
Earnings Call on Aug 6, 2025
Revenue: Q1 FY '26 consolidated net revenue was INR 41.3 crores, down 9% sequentially due to temporary lower management fees.
Profitability: Consolidated EBITDA improved to INR 23.3 crores from INR 36.9 crores last quarter, aided by cost optimization and treasury income.
Balance Sheet: Company maintains a strong treasury of INR 320 crores and net worth of INR 460 crores as of June 2025, with no significant debt.
Business Scale-Up: Estate 360 inventory fully sold within 10-11 months; Estate 361 and Chandigarh projects to launch soon, keeping pipeline above 2 million sq. ft. for the year.
Assisted Care Growth: Q1 net revenue for Assisted Care reached INR 22.06 crores (2.2x YoY growth); Care Home revenue rose 90% YoY to INR 2.93 crores; Care at Home revenue up 24% YoY.
AGZ Expansion: AGZ net revenue grew 2.2x YoY to INR 14.2 crores with increased digital conversion, new channel partnerships, and product innovation.
Occupancy & Collections: Care Home occupancy rose from 14% to 23% in Q1; Estate 360 and Noida projects reported 99% and 98% collection efficiency respectively.
Guidance: Management expects continued scale-up with 500 assisted care beds operational by Q2, strong project launches, and AGZ breakeven by FY '27–'28.
Estate 360, the first intergenerational project, is fully sold out with all inventory sold within 10-11 months. Collections are on track, with a plan to collect INR 250–270 crores in FY '26. Estate 361 and a Chandigarh project, together exceeding 2 million sq. ft. of development for the year, are scheduled to launch in the coming quarters. High collection efficiency was reported for both Estate 360 (99%) and Noida (98%).
Antara Assisted Care added 45 beds in Q1, bringing total capacity to 340 beds, with another 150 beds under fit-out and set to launch soon. Occupancy averaged 14% in April, rising to 23% in June. The segment expects to reach 500 operational beds by Q2 FY '26. Revenue for the Assisted Care business grew 2.2x YoY to INR 22.06 crores, with Care Home revenue up 90% YoY and Care at Home revenue up 24% YoY.
The company remains debt-free except for minor vehicle loans, with consolidated treasury assets of INR 320 crores and net worth at INR 460 crores. A recent rights issue was oversubscribed by 1.45x, and the company is proposing an additional INR 80 crores raise via convertible warrants. Proceeds from the recently completed Max Towers asset sale are being used to fund growth.
Consolidated EBITDA for Q1 was INR 23.3 crores, supported by cost optimization and treasury income. The Assisted Care vertical expects a cash burn of around INR 90 crores for FY '26 as it scales up beds and services. The business investment segment at holdco may see minor ongoing cash burn due to lower rental and shared service income after the sale of Max Towers.
AGZ net revenue hit INR 14.2 crores, up 2.2x YoY. The segment faced a temporary disruption due to Meta's policy changes but resolved the issue and diversified digital sales channels. Google’s contribution to D2C sales rose from 10% to 35%. The company also expanded its online and offline partnerships, launched new SKUs and filed for three product patents. Gross margins for imported AGZ products from China are higher (55%) compared to India (40%).
Care Home occupancy rates improved from 14% in April to 23% in June. Management reiterated that each Care Home typically reaches 65–70% occupancy within eight quarters post-launch, with break-even at 40–45% occupancy and EBITDA positive at higher occupancy. One memory care home reached 45% occupancy in 10 months; others are ramping up at varying rates depending on launch timing.
Three product patents have been filed for AGZ in large target markets (INR 700–1,000 crores cumulative TAM). The company is launching new product lines, including a gut health solution in partnership with Wellbeing Nutrition, and plans further innovation in tech-enabled devices for seniors. The AGZ business aims to deepen offerings in its core categories rather than general wellness or telehealth.
Management described strong market conditions, growing sector interest, and ongoing regulatory engagement (with NITI Aayog on care standards). The company has received multiple certifications and aims to remain a leader in senior care by scaling both residences and assisted care while pursuing long-term plans for profitability and national footprint.
Ladies and gentlemen, good day, and welcome to the Q1 FY '26 Conference Call hosted by Max India Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Rajit Mehta, MD and CEO from Max India Limited. Thank you, and over to you, Mr. Mehta.
Thank you. Namaste, and a very good morning to all of you on behalf of Max India Limited. A hearty welcome to the Q1 FY '26 earnings call. Once again, deep gratitude for all the support you have shown to our group. And since we will not talk as a group before November, Happy Janmashtami and Jai Shri Krishna.
I have with me my colleagues, Ajay Agrawal, who's the Deputy CEO and CFO for Antara Senior Living and also spearhead Investor Relations; Sandeep Pathak, who is the CFO for the holding company; Ishaan Khanna, our CEO for Antara Assisted Care; and Ankit Kalra, the CFO for Antara Assisted Care; and SGA, our Investor Relation Advisers.
We uploaded the results yesterday, in line with your feedback that we should give you some time. So we did it yesterday. So I hope everybody had an opportunity to go through the same.
Let me begin with the highlights of the quarter. As I had said last time, our focus is completely on scale-up and execution. So we have been busy strengthening all the building blocks for scale up, be it marketing, brand, technology, capabilities and operations. And I must say it's been a very satisfying quarter.
While I already talked about this in the May call, we concluded our rights issue, which was oversubscribed by 1.45x times. Also witnessed participation from promoters and a strong demand from marquee institutional retail investors. And this response is clearly a vindication of the confidence you have in us, the company's fundamentals and the growth prospects.
In view of this response, we also are proposing a further raise of INR 80 crores because many people were not able to get subscription in the first rights issue. We will look at a pref issue by way of convertible warrants for which we will come back to you for approvals. Further, the sale of units in Max Towers, which is a nonstrategic asset for us, has been concluded now, and the proceeds are being used for the growth of the business.
We've also, I think, before I begin the business update, a very strong endorsement from all stakeholders. We have healthy customer satisfaction scores, 90% for care homes, 94% for Care at Home, 86% for AGZ. Our NPS in AGZ is now 44%. It's quite a high score, I must say, for our D2C business.
If you look at our Dehradun community, the satisfaction scores for residents continue to be as high as 88%. And Glassdoor rating, which are reflective of how the employees think of us as an employer is also 4.3. So very strong endorsement from all stakeholders.
On the asset side, I'm very happy to inform you that 100% of the inventory for our Estate 360, the first intergenerational project developed by Max Estates is now complete. The collections are on track and receipt of Antara fee is also expected to be in line with plan. And we managed to sell the inventory within 10 to 11 months, which is quite good.
Given this overwhelming response that we received and the pricing, as you know, in Gurugram is quite attractive compared to other parts of India, we are partnering again with Max Estates for a second phase of the same development. It's a contiguous piece of land and expected to be launched by Q2 FY '26, which will add to the revenue projections of the company.
On Antara Assisted Care, we've added about 45 new beds and care homes during Q1 FY '26, with the launch of Chennai on ECR Road, which makes our bed capacity now 340 and about 150 in Bangalore and Chennai under fit-out, which will get launched in August and September.
In the AGZ vertical, we now have 40,000 repeat customers, about 12% to 13% of total customers now. We have touched about 3 lakh lives since inception, out of which 2.4 lakhs on marketplaces, the rest on our own website. I already talked about the NPS, which has grown from 13 to now 44 in a period of 1 year.
If you look at all the verticals on the residential side, I already spoke about the Gurugram project, which is about a 2.1 million square feet development, out of which 0.7 million square feet was senior living. Of the 292, while we sold only 280 till June '25, as we speak now all the inventory is gone.
Sales collection of INR 273 crores with 99% collection efficiency. And we continue to have a steady revenue income by way of management fees. We have received, I think, till about March INR 19.32 crores and during Q1 FY '26, about INR 2.95 crores so far.
On Noida, as you know, we already sold out the inventory. They're ready for possession. The community is ready. We have collected so far INR 398 crores, 98% collection efficiency. We had made an application for the occupancy certificate, which, as you know, the Noida authority has kept in advance till the time larger clarity around Sector 150 emerges. We had filed a petition with the Allahabad High Court seeking direction to ask the Noida authority to grant us the OC. The court has said that if we are able to clear all the dues to Noida authority and have constructed as per the brochure and the Sports City scheme, then we can approach again for the OC.
Accordingly, what we have done, the SPV, which is [ Content Builders ] has already made a payment of INR 40 crores to Noida Authority. Another INR 100 crores will go shortly. And therefore, we will then approach the appropriate forum once again for grant of the OC. All this was already part of our cash flows. We have taken into account. We're just waiting for the right moment to make the payment.
On Phase 2 of Sector 150, once this gets cleared, we are expecting that will let clear know as well. We continue to monitor the situation very carefully, and we're engaging with the best of lawyers and legal advisers to be able to resolve this issue.
One silver lining I keep on repeating is that the Phase 2 prices have gone much beyond what we had planned for. And if you remember, the last sale in Noida Phase 1 was about INR 11,000. We had assumed it become INR 12,000. Now it's touching INR 16,000 to INR 18,000. So once we get the clearance, hopefully, the realization will be far more than what we had expected.
In Dehradun, all inventories were already sold out. We keep on getting a small fee from resale that happens sometimes because circumstances in people's life change. The operational revenue was increased to about INR 6.2 crores in Q1 FY '26, a growth of 15% over the corresponding period last year. It continues to be profitable.
We have, I think, achieved in the first quarter about INR 0.85 crores of profit. We keep on maximizing opportunities to increase revenue and keep a close watch on costs. The community PBT positive, about INR 85 crores of cash surplus lying in Dehradun, which will be used for growth of our businesses.
On new communities, on the second phase of Estate 360, which is called now Estate 361. It's a 1.04 million square feet development, about 360 units now, expected to be launched by September, October this year.
The Chandigarh opportunity, definitive agreement has already been closed with the landowner. Registry will happen sometime in the next 10 days. We have begun the groundwork, appointed the architect already. This is a 1.01 million square feet development with 324 units. So with that, we are well above the commitment we made to you of doing 1.5 million square feet per year. We're already up to 2 million square feet for this year.
Shifting now to Antara Assisted Care. During Q1 FY '26, overall net revenue of about INR 22.06 crores, which represents a year-on-year growth of 2.2x.
On Care Home, significant expansion is ongoing, 45 beds added, 150 under fit-out. We'll take to approximately 500 beds, as we have been saying. Also, a lot of work has happened on the Care Home occupancy. The net income revenue for Care Home stood at INR 2.93 crores, which is a year-on-year growth of 90%.
We have served about 300 patients during Q1 FY '26 and over 2,500 patients so far. And as we ramp up, the occupancies and margins will improve further. All initiatives regarding doctor tie-ups, hospital tie-ups, contribution for digital is up to 14% now. We also now opened a patient assistance center opposite a hospital in Gurgaon, trying to attract people who come from outside the country or outside the city.
If you look at the occupancy trends, I can read them out to you. They vary by location. But on the average, in April, May and June, they went up from 14% to 18% to 23% in June, right? So that's the ramp-up we have had in occupancy on the Care Homes.
On Care at Home, as you know, this is a cautious expansion, as I've been saying for the last so many years. Bengaluru and Chennai registered a revenue growth of 110% in Q1 FY '26 Y-on-Y. We've also increased the penetration of high-margin services like critical care and physio. We have now achieved the highest ever revenue of INR 4.94 crores in Q1 FY '26, a strong year-on-year growth of 24%, led by high-margin service offerings.
Contribution margins have come down a little bit from 15% to 12%, while Delhi continues to be 20%. Chennai has moved from negative 26% to plus 1%, Bangalore at minus 5% is because the inflation kicks in, in April when we go through our salary actions. The price increase will happen now in the next 2 months. So this temporary impact will get taken care of. So far, we have served about 3,000 patients during Q1 FY '26 and over 37,000 patients through this vertical since inception.
Also do remember that as we acquire customers, whether through residences, care homes or care at home, we continue to cross-sell our products and services, which was the intent and aspiration behind creating an integrated care ecosystem. We have now stores of AGZ in Dehradun in the care homes as well, and that's a cross-sell opportunity we want to leverage and therefore, achieve higher LTV.
On AGZ, which includes the erstwhile Medcare business now part of AGZ now, we achieved a net revenue of INR 14.2 crores in Q1 FY '26, a strong year-on-year growth of 2.2x. All SBUs have shown strong momentum.
On product portfolio, we expanded to 85 products and 180 SKUs. We also filed for 3 patents, which are some innovative products, which we'll share with you once we get the patents.
Our ROAS, which is an indication of profitability, also 2x achievement Y-on-Y. We achieved 1.6 as compared to 0.87 in Q1 FY '25. We also signed up Anupam Kher, as a celebrity, as a face for AGZ, and we have seen very early impact.
On marketplaces, the conversion has gone up from 6% to 7.5%. And on Google, the CTR has gone up from 2.5% to 6%. So hopefully, we should see a 10% to 12% increase in revenue as an impact of this. ROAS continues to improve. The July numbers are far better, but that we'll talk about in the next quarter.
So we already crossed an annual trajectory rate of INR 70 crores to INR 75 crores in this business, 62% coming from marketplaces. Of that, now Flipkart has emerged as another channel, which we signed up. It's already contributing 12% to 13% of our revenues and 25% of marketplaces.
We also resolved the Meta issue that we had. A new website has been launched. So that issue also stands resolved at this point of time. Our top 5 products continue to be BP monitors, walking sticks, nebulizers, bunion correctors, pillows, knee cap, SpinePro, LS Belt, [indiscernible], which we introduced in this quarter, which have a very high ROAS.
We have initiated imports from China, as you know, which have increased our COGS by 20%. And once we're able to stabilize the supply chain, given the geopolitical situation, we'll explore what more we can do.
Our plans of launching the gut health solution sometime in Q2 remains. We will launch that sometime in September, October. As you know, we have tied up with Wellbeing Nutrition, which will do all the formulations and research for us. It's a leading nutraceutical company, which will help us develop tailored products under this partnership for holistic wellness of seniors to nutraceuticals and supplements.
In order to increase our access to customers, we have stitched up a pipeline of products to launch new innovations and solutions. As you know, we had partnered with Boat for all electronics and gadgets required for seniors. We also partnered with Axis Bank. They have about 30 lakh customers on the silver linings program. So far, in the first few months, we have already registered a sale of 2 lakhs, a very small number, but these are initial days.
On a consol basis now, our performance for Q1 FY '26, in line with expectations, so no surprises there. The net revenue of INR 41.3 crores, 9% lower than Q4 FY '25, but that is totally attributable to a lower management fee. As we have had more sales in Gurgaon, this fee will now go up, and therefore, this will get covered up. As I keep on saying, these are all temporary timing issues, nothing to do with anything fundamental.
The consol EBITDA is a lot better than the previous quarter. We had INR 23.3 crores versus INR 36.9 crores in Q4, primarily due to cost optimization and a healthy treasury income. Overall, our treasury and other assets now stand at a healthy number of INR 320 crores, and the company has a consolidated net worth of INR 460 crores, as of June '25.
This is all about the results so far. Some of you joined the call for the first time. Just want to reiterate, there are 3 businesses that Antara is into residences for seniors, which is meant for people, who are more independent, but want to stay in a safe and secure environment with all the services.
We have transition care and assisted living and memory care for seniors, who require more immersive interventions because of medical situation and they want to come and stay for short stay or long stay with us. And the products and services business, which is for chronic condition management, right? This is how we are creating in India, a unique integrated care ecosystem for seniors.
The market continues to be strong. The sector keeps on seeing new players. NITI Aayog is in charge with developing the sector. We also submitted a paper to NITI Aayog for introducing standards across India.
We'll be pleased to know that the Healthcare Sector Sales Council took out the standards for Care at Home, and we became the first company to get a certification. We already have a certification of NABH for our memory care home. And we also have an ASLI certificate of excellence audited by Grant Thornton for our community in Dehradun.
So in summary, Antara Assisted Care touched about 3 lakh patients so far, and we are quite in line of meeting our promise of creating 8 to 10 communities in the next 5 years, 1,500, 2,000 beds and having AGZ available across India. As we had indicated last time in terms of AGZ breakeven FY '27, early '28 we will envisage a breakeven on the AGZ part and rest of the businesses by FY '28 is a discussion we have had in the past with you.
So with this, I conclude my speech and welcome any questions.
[Operator Instructions] The first question is from Harsh from Aionios Alpha.
So a couple of questions on the resi business. The pace of collection in Estate 360, I understand, was slightly lower in this quarter versus previous. And I understand that's a timing difference. But how should one look at the collections over the next 3 quarters from this project?
Harsh, this is Ajay. So we are expecting approximately INR 250-odd crores of collection in Estate 360, INR 250 crores to INR 270 crores for the whole year, in which just as a number, we have collected approximately INR 33 crores for June and the balance would come. And everything is planned, and there is no red flags in that account at all.
Understood. And on 361, when we say that we are going to launch the project in Q2, does that mean that presales would also start in quarter 2 of this year?
There's no concept of presale actually. So we will be obviously taking expressions of interest, et cetera. But then, yes, the moment the sale will get initiated by RERA, we'll be fast tracking all the discussions.
Understood. And just lastly, on AGZ, what -- you've said that there were some challenges on the Meta platform this quarter. Just would like to get some more color on what exactly happened on that front?
Sure. Sure.
Hi, Ishaan here. I hope I'm audible. So end of February, Meta had changed its policies with respect to the health and medical devices category in Europe in accordance with the GDPR guidelines on certain personal health and personal information that they would not accept from brands under that category, and we were also inadvertently put into that category by them.
And overnight, the GDPR rules were applied to India as well. And hence, they got applied to us within 24 hours of them being applied in Europe. What we have done over the last couple of months addressing that is obviously get ourselves recategorized into the health and wellness category. We had to make certain changes to the way we were passing on the customer data back to Meta. And we had to also redo the entire website in alignment with the new guidelines. So that is all being done and completed as we speak. And that has led to now us seeing the green shoots coming back from Meta and the data interchange happening.
All right. Would it be possible to quantify how much was Meta in terms of overall non-D2C portion of the sales?
D2C. So the D2C online portion, Meta contribution was around 70% in Jan and Feb, which got massively impacted due to this. But we've also since then opened up multiple new channels on D2C. So Google, which was 10% of my overall contribution is now 35%.
I have also activated many online partnerships such as with GPay, PhonePay, et cetera, which are upwards of a monthly revenue run rate of INR 1 crore now as we speak and also expanded offline partnerships with corporates and physiotherapy center, which has given me a revenue close to around INR 15 lakh in the month of July.
So while the Meta issue has been resolved, Harsh, we also discovered new partnerships. And therefore, we want to focus on making sure that we don't have a disproportionate share of Meta as we go forward, while we have solved the issue, but we also developed alternate channels now.
[Operator Instructions] The next question is from the line of Ankit Dharamshi from RNM Capital Trust.
So I understand that our occupancy has jumped up from [ 14 to 23 ] in June. Just wanted to understand how much time it will take [ for every project ], existing [indiscernible] to reach an occupancy of [ 70 ], earlier you stated as 15, around 8 weeks for one facility [indiscernible] to mature. So is the same time line that it will take for us to mature or will take [indiscernible] hoping to ramp up faster.
Ankit, we've said 8 quarters, not weeks. I wish it was 8 weeks because we are laughing [indiscernible]. Yes, yes. So we're aligned to 8 quarters. So in most Care Home, we'll see a 65%, 70% in the 8 quarters also.
We are aligned to that. So this -- what was quoted is an average number. So each Care Home is at a different occupancy, which is leading to this average because we have a Care Home, which is 10 months old, which is at around 45% occupancy, which is our memory care home.
We have a very new centers such as the one in Noida, which is at around 20% occupancy. Bannerghatta in Bangalore is at 30% occupancy. So each of these Care Homes based on when they went live, are at different occupancy percentages, and that leads to this average, but each Care Home will follow the trajectory of reaching to 65%, 70% in 8 quarters.
We told that there are around, I mean, 3 innovative products for which we have filed patents. So would it be possible for us to put some color on what is the addressable market size for those 3 products?
These are going to be cumulatively for these products will be between INR 700 crores to -- INR 700 crores to INR 1,000 crores market is what we target for these products.
Got it. One just general question. The project cost that we have been reporting for Noida, I mean in Q3 or Q4, we reported INR 1,000 crores and now it is INR 11,00 crores. So just wanted to understand how are you kind of calculating this and ...
Yes. So when we had approached the High Court, Noida Authority has given a revised calculation for the land cost and also with the inventory getting extended as held and we are not able to deliver, there are certain costs, which are getting baked in on a monthly basis. Adding both the 2, I have taken that number. Obviously, we are challenging the demands what has been raised by Noida. But as a conservative presentation, I have added it into our project cost.
So any further revision upwards or I mean, we are confident that now it will stay within that range.
This includes the Phase 2 cost also. So while we have estimated depending the inflationary increase, but once we will come into the position of launch of Phase 2 at that time when we are going to finally do the costing for the whole project, the Phase 2 project, then this number will get refined. We are very hopeful that we will be able to contain this number, but then at that time, it will come exactly what the number would be.
But the silver lining, Ankit is that the price that we've taken in the business plan is about INR 12,000 crores. That has moved from INR 12,000 crores to about INR 16,000 crores to INR 18,000 crores that buffer is already there for us.
Correct. Yes. Got it. That I understand. One just bookkeeping question. In segments, we are also reporting business investment as a segment. So just wanted to know more what exactly this business investment refers to because [indiscernible]...
You're talking about the last page?
In the segment, we are reporting business investment as a segment.
[Technical Difficulty] So this segment is the Max Corporate, the investment which we hold in our subsidiaries as well as the treasury. We keep the treasury corporate holdco that is covered under the business investments.
[Operator Instructions] The next question is from the line of [ Aryan from Arihant Capital ].
Sorry, we can't hear you.
So I have 2 questions. Firstly, when can we expect all these Care Homes to reach their complete operational capacity? And doing so, how will it influence our revenue?
When you say operational capacity, Rajit did mentioned that as per the plan, 500 beds, all full capacity go live by the end of this quarter. So August, September is when we are expecting all 500 to go live.
There is some disturbance on the call. Please keep yourself mute.
And again, as we previously mentioned, each Care Home post going live takes around 4 quarters to break even at a contribution level on a 40%, 45% occupancy. takes another 4 quarters from there to achieve a 65%, 70% occupancy when we reach our EBITDA positive numbers. So that is the trend we are following for the Care Home that have gone live till now and should follow suit for the others as well.
Okay. And another question would be, have we any debt obligations for doing so? And if so, when can we see them also reduce?
We don't have any debt on our books at all.
Aryan, as we have said, we don't have any debt on our books, except very minor vehicle loans, which are just business as usual. We don't have any strategic debt as on 30th of June.
Okay. And for expansion, are you planning on taking any sort of debt? Or are we going to continue with this sort of business model?
So in the project specific, we can come for a debt arrangement, which is just to take care of the cash flow mismatch for a project. Barring that, for other businesses, we will not be depending on debt.
But as I said earlier, for our growth, we will be looking at a fundraise, which I've been saying about $20 million after we complete the second tranche of the pref issue in the next month.
[Operator Instructions] The next question is from the line of [indiscernible] from KS Broking.
I have a question. The fun is AGZ digital campaign featuring Anupam Kher emphasizes independent joyful agents. How has this campaign translated into brand engagement web traffic and conversion for AGZ?
Okay. So it has done 4 things for us. One is for Google, the click-through rates, which were at around 2%, 2.5% have gone up to around 6%. We have had almost 14.5 million users engaging with the content. So that is with respect to how much it has led to reach.
And in the first month, and it's just been a month it has gone live, we focused these campaigns mostly on performance marketing. So it has led to a 1.5% increase in conversion on my marketplaces, where we've used most of Anupam Kher's creatives. So it was 6%, which is translating into 7.5%. In revenue terms, this increase in conversion is approximately around what INR 1.5 lakhs to INR 2 lakhs per day of additional revenue or 10% to 12% overall impact for now.
Okay. And also, I have one more question. AGZ expanded from 65 SKUs in its inaugural year to 180 by March '25, targeting issues like joint care, fall prevention, lung health, wearable safety devices. What is the current pipeline for new innovations for FY '26? Any plans for health care tech like telecare, remote monitoring, AI-enabled elderly care?
The focus that we have now is on now expanding into a new condition. Again, as Rajit mentioned, we'll be launching the gut health, which is a very critical area for seniors in September, October of this year.
And in the categories that we are present, our intention is to go deeper. So we will launch upgraded versions of the products that we already have for rehabilitation, joint care and fall. Some of these will be tech-enabled and some will be innovative rehabilitated products.
Please let me clarify. AGZ is an online, offline store of products and solutions to manage chronic conditions for seniors. We are not a general wellness platform, where we will do teleconsults, et cetera, for seniors. We will launch products in 4 conditions that we have picked up around those only, but we leverage tech.
For example, we will launch 2 cell diagnostic engines for lung health and knee health, which the customers through technology can answer, and they will get a recommendation of a care plan. So all the interventions within the 4, 5 conditions we are specializing in, we will launch, but not general teleconsults, et cetera.
[Operator Instructions] The next question is from the line of Nikhil Gupta from [indiscernible] Capital.
I think in the presentation, you briefly touched about patents. Can you -- whatever more can you describe on that, please, that would be quite helpful.
As I said, there are 3 patents that we have filed both on design and utility. At this point of time, not able to comment because till the time we receive the approvals, not able to disclose. But the good thing is once you file a patent, then nobody else is allowed to copy what we have filed. And these are 2 products in a very large market size TAM, as Ishaan mentioned earlier, about INR 700,000 crores.
At this point of time, we can only say that. And what we have done is we've hired a person from Stanford BioDesign. We have a laboratory in our head office, where we keep on looking at new products and innovations depending on the conditions we are addressing and the market size. So 3 patents filed so far and some more under research right now is all I can share.
[Operator Instructions] The next question is from the line of Ankit Dharamshi from RNM Capital Trust.
Just a follow-up question on the business investment. As you stated that it is a holding company and the treasury that we hold. Just wanted to understand in that particular segment, we have been burning consistently. So any particular reason for why we are reporting loss over there?
So largely, this business investment is the Max India Holdco, where we had this investment of Max Towers earlier. We used to own the treasury, which has been -- which was utilized earlier and then we recounted by the rights issue in the current year and by monetizing the Max Towers sale also. So this -- and then we had revenue of the shared services also.
But gradually, as we are focusing on the subsidiaries, now the rental income goes away as the Max Towers asset has been sold. The shared service also has been rationalized. And the focus is majorly on funding the subsidiaries and holding the treasury at the holdco. And that's why there is a dip in revenue.
Having said that, as we sold this Max Towers sale and concluded it in the first quarter, for this particular quarter, there is a profit, which is almost INR 9.5 crores of profit getting reflected in the exceptional item, which is adjusted by the rights issue expenses, which were incurred for completion of the issue.
Okay. So going forward, we see that this particular segment will not be having significant burn cash, right?
So the revenues here would are contingent on the amount of treasury corpus we have and the expenses are more or less static. So there could be minor cash burn, but this is not a significant segment as compared to assisted care and residences as this is purely at the holdco.
[Operator Instructions] The next question is from the line of Aditya Jain from Avener Capital.
How much would be the cash burn do we estimate in the Assisted Care segment for FY '26...
We're expecting around INR 90 crores between Care Home, Care at Home and AGZ.
For FY '26.
For FY '26.
Okay. And my second question is, what would be the gross margin in the AGZ products for India versus China?
So there is a 20% COGS improvement that we've seen when we import from China compared to what we source from India. So currently, there will be around gross margin of 40% of the India products and around -- currently seen around 55% from China.
[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you very much. Thank you for all those questions. Really helps us paint a picture of what we are doing and get clarity on how we are progressing. Once again, a big thank you and all the support that you give us.
We'll continue our focus on execution. As I said, this is a scale-up year for us in all the businesses. We'll see launch of 2 new communities on the Residences side. And hopefully, Noida gets resolved, maybe a third one as well.
On Care Home, significant expansion already taken place. So we should see the throughput in revenue. On Assisted Care, the nature of our D2C business jumping 3x. So it's a 3x increase in business everywhere in all the verticals. That's where our focus is on.
And I'm really glad that quarter-on-quarter, we are able to report the results as per the plan and not give any unpleasant surprises to you. So very glad for that. So thank you very much once again, and wish you all the best.
Thank you very much. On behalf of Max India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.