Financial Performance Highlights

Full Year FY26 (Audited)

  • Revenue from Operations: ₹7,728 million (compared to ₹7,171 million in previous year)
  • EBITDA: ₹2,149 million (growth of approximately 10% from ₹1,958 million last year)
  • EBITDA Margin: 27.81%
  • PAT: ₹1,014 million (compared to ₹776 million in previous year)
  • Dividend: Board recommended dividend of ₹2 per share (40% of face value)

Q4 FY26 Performance

  • Revenue: ₹1,926 million (4% YoY growth, 7% QoQ growth)
  • EBITDA: ₹559 million
  • EBITDA Margin: 29%
  • PAT: ₹417 million (101% YoY growth)

Operational Highlights

Infrastructure Scale

  • 190+ CT and MRI centers operational
  • 147 pathology laboratories
  • 4,700+ patient collection centers
  • Presence across 18 states and territories
  • 350+ radiologists, 100+ pathologists, 3,000+ healthcare professionals
  • Processed nearly 59 million tests in FY26
  • Served approximately 20 million patients in FY26

Rajasthan PPP Project Implementation

  • 27 mother labs and 800+ collection centers being rolled out
  • No revenue contribution in Q4 FY26
  • Expected revenue contribution from Q1 FY27
  • Full installation expected by Q2 FY27
  • Revenue potential: ₹100-150 crores for FY27 (conservative estimate)
  • Adding approximately 5,000 personnel for Rajasthan operations

Retail Business Performance

  • Revenue: ₹600 million in FY26 (sixfold growth from ₹100 million in FY25)
  • Contribution: 8% of total revenue
  • Retail network: 3,500+ touch points including 500+ franchises
  • Geographic presence: Maharashtra, Punjab, Assam, Odisha, Himachal Pradesh
  • Target: Double-digit contribution in FY27, 25-30% in 3-5 years

Capital Expenditure and Investments

  • Cumulative capex deployment: ₹5,000 million across Rajasthan, CT/MRI expansions, retail infrastructure
  • FY27 capital investment plan: ₹5,000 million (including carryforward from FY26)
  • Long-term revenue visibility: ₹6,000-7,000 crores over next 5-7 years
  • Funding through internal accruals, operational cash flows, and vendor finance capex model

Working Capital Management

  • Q4 Collections: ₹1,580 million (highest quarterly collection in company history)
  • H1 FY26 Collections: ₹2,910 million
  • DSO: 139 days at Q4 end (improved from 155 days in Q3)
  • Target: Sub-120 days for FY27
  • 14-year track record of virtually 0 bad debt
  • Receivable delays attributed to administrative issues (official transfers, system upgrades) not credit risk

Strategic Investments

  • Apulki Healthcare investment generated valuation gain of ₹222 million during the year
  • Partnership provides exclusive diagnostic rights for oncology and cardiology for 30+ years
  • First hospital recently launched in Maharashtra

Management Guidance and Outlook

FY27 Expectations

  • Rajasthan project to be fully operational
  • Retail business to achieve breakeven and accelerate growth
  • New MRI centers to contribute to radiology base
  • Maintain current EBITDA margin levels annually (some Q1 pressure expected due to Rajasthan manpower deployment)
  • Continue geographic expansion through strategic alliances and selective acquisitions

Growth Metrics

  • 5-year revenue CAGR: Approximately 12% (compared to 8% for diagnostics peer group)
  • Organic growth for like-to-like continuing projects: Approximately 13%

Q&A Session Key Points

Project Updates

  • MRI centers: 10 MRIs going live in coming months (total 17 under implementation)
  • Pipeline: Selective PPP opportunities being pursued, updates expected in coming quarters
  • Contract renewals: Tamil Nadu is major contract up for renewal

Margin Sustainability

  • Working to maintain current EBITDA margin levels
  • Q1 FY27 margin pressure expected due to upfront Rajasthan manpower costs
  • Rajasthan expected to achieve positive EBITDA in FY27

Receivables Management

  • Himachal Pradesh and Karnataka collections progressing (significant collections received)
  • Contractual provisions allow service suspension for payment delays
  • Delays are administrative, not structural

Leadership Team

  • Management team remains stable despite recent resignations
  • Operational leadership intact to deliver growth

Accreditation and Quality

  • 54 NABL accredited labs
  • 54 NABH accredited radiology centers
  • India's first ACR accredited teleradiology platform
  • India's first CAP accreditation pathology laboratory in government facility