Krsnaa Diagnostics Limited held its Q2 and H1 FY27 earnings conference call on November 03, 2026, at 12:30 Hrs (IST) to discuss unaudited standalone and consolidated financial results.

Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue from operations: ₹271 crores (vs. ₹206 crores in Q2 FY26), representing 32% YoY growth - highest ever quarterly revenue
  • EBITDA before CSR and ESOP: ₹72 crores (vs. ₹60 crores last year), 20% growth
  • EBITDA margin: 27% (vs. 29% in Q2 FY26)
  • EBITDA after CSR and ESOP: ₹71 crores with 26% margin
  • Profit after tax: ₹25 crores (vs. ₹24 crores), 3% growth
  • PAT margin: 9%

H1 FY27 Performance:

  • Revenue from operations: ₹507 crores (vs. ₹399 crores in H1 FY26), 27% YoY growth - first time crossing ₹500 crore in half-year
  • EBITDA before CSR and ESOP: ₹131 crores (vs. ₹113 crores), 16% growth
  • EBITDA margin: 26% (vs. 28% last year)
  • PAT: ₹41 crores (vs. ₹45 crores)
  • PAT margin: 8%

The moderation in profitability was primarily due to upfront operating costs, higher depreciation, and finance costs associated with the expanded network, particularly the Rajasthan project implementation.

Operational Highlights

Network Expansion:

  • 259 pathology laboratories across 19 states and union territories
  • 196 CT and MRI centers
  • Over 8,400 patient touch points spanning 334 districts
  • 75% of centers covering rural areas of India

Quality Accreditations:

  • 57 NABH-accredited pathology labs
  • 75 NABL-accredited radiology centers
  • Supported by over 350 radiologists with NABH-accredited teleradiology capabilities

Retail Business Performance:

  • Q2 FY27 revenue: ₹23.5 crores, 35% YoY growth
  • Patient volume increased by 45%
  • Test volumes grew by 48%
  • Retail now contributes approximately 9% of overall group revenue
  • Engaged 10,000+ through conferences, webinars, and meetings in Q2
  • Expanding preventive healthcare and specialized test offerings in cardiac care, oncology, metabolic health, and obesity

Strategic Developments

Receivables Management:

  • Receivables increased to approximately ₹470 crores as of September 30, 2026
  • Increase reflects business expansion and delays in fund allocation from certain government authorities
  • Management has visibility on potential collections of around ₹200 crores during Q3 FY27
  • Senior management teams engaging directly with relevant state government authorities

Cash-Based Revenue Strategy:

  • Strategic focus on increasing cash-based revenues delivering encouraging results
  • Expect cash-based revenues to contribute 40-45% of overall revenue mix by end of FY27
  • Targeting approximately ₹400 crores cash-based revenue for FY27
  • Actively pursuing additional cash PPP opportunities with tenders in pipeline

Promoter Investment:

  • Convertible warrants allotted to promoter group representing potential investment of approximately ₹92 crores
  • ₹23 crores already contributed with balance payable upon conversion

New Project Wins:

  • PET/CT diagnostics PPP project in Punjab (cash-based)
  • Himachal Pradesh 34 CT scans project (15+ year tender, cash-based)

Apulki Healthcare Association:

  • Commenced operations in Pune hospital
  • Progressing hospital PPP initiatives across Borivali, PCMC, KDMC, and Chembur-Govandi region of Mumbai
  • Represents hospital platform of approximately 2,000 beds

Management Outlook

  • Expect margin improvement as new projects mature and utilization increases
  • Focus on improving asset utilization, maintaining financial discipline, and managing working capital
  • Targeting double-digit retail contribution by end of FY27, with aspiration to reach 20%+ in next 2-3 years
  • Working towards ROCE improvement to higher teens through multiple levers including sale leaseback model and cash business focus
  • Rajasthan project implementation at 75-80% completion, with potential to deliver ₹250 crores annualized revenue
  • Retail business expected to reach operational breakeven by Q3/Q4 FY27

Q&A Session Key Points

  • Test volume growth driven by combination of Rajasthan project ramp-up and retail expansion
  • Revenue per test decline attributed to blended pricing from PPP and retail mix
  • Payables increase to ₹230 crores includes trade creditors and project enhancement capital payables
  • Rajasthan project costs majority already in P&L, with only incremental manpower and consumable costs expected
  • Margins expected to improve from current 27% as revenue ramps up without proportional cost increase