Financial Performance Q1 FY27 (Quarter Ended 30 June 2026)

  • Total Income: ₹887 million, up 21% YoY from ₹735 million in Q1 FY26
  • EBITDA: ₹315 million, up 28% YoY from ₹247 million in Q1 FY26
  • EBITDA Margin: 36% vs 34% in Q1 FY26
  • PAT: ₹128 million, up 40% YoY from ₹92 million in Q1 FY26
  • PAT Margin: 14.7%

Operational Metrics Q1 FY27

  • Patients Served: 0.38 million
  • Tests Performed: 2.10 million
  • Tests per Patient: 5.56
  • Revenue per Patient: ₹2,321
  • EBITDA per Patient: ₹835
  • Network Size: 72 centers at quarter-end

Center Expansion and Performance

  • Q1 Additions: 1 hub and 3 spoke centers commissioned
  • July-August Additions: 2 hubs and 3 spoke centers added
  • Geographic Expansion: First hub commissioned in Jharkhand; hub in Tripura to follow shortly
  • Center Profitability:
  • Mature centers (>2 years): 40.9% EBITDA margin
  • Centers under 2 years: Turned profitable at 6.5% EBITDA margin (from -5.5% previous quarter)

Genomics Business Performance

  • Q1 Revenue: ₹13.7 million, up 136% YoY
  • Growth Pattern: Five consecutive quarters of sequential growth
  • New Initiatives:
  • Blood test for Alzheimer's disease launched with positive doctor feedback
  • AI-driven early detection of Alzheimer's from plain brain MRI in collaboration with CSIR
  • Genexus equipment acquisition for fast genome sequencing (48-hour turnaround vs 14-17 days previously)
  • Margin Profile: 15-20% margins currently
  • Investment: ₹22 crores over 3 years in genomic capacity

Management Commentary and Strategy

  • Expansion Strategy: Concentric approach - hub centers surrounded by spokes, then collection centers
  • Capex Outlook: ₹70-80 crores for FY27
  • Center Targets: 100 centers by FY28; 3 hubs and 6 spokes planned for remainder of FY27
  • Center Economics:
  • Hub center setup cost: ₹10-10.5 crores
  • Spoke center setup cost: ₹1.5-2 crores
  • Spoke center break-even: 3-4 months at center level, 8-9 months including HO costs
  • Market Position: Largest organized diagnostic player in Eastern India with underpenetrated market

Growth Drivers and Margins

  • Margin Expansion Drivers: Volume growth, operating leverage, better procurement terms (shift from Siemens to Roche), genomics contribution
  • Growth Sustainability: Mature centers delivered 12.3% YoY growth; expect continued growth from genomic business contribution
  • CGHS Impact: Rate increase in October 2025 provided incremental benefit (~1.5% top-line impact)
  • Business Mix: Wellness segment contributes 4-5% of revenue; corporate segment ~15%

Geographic Expansion Plans

  • Kolkata: Currently 5 hubs and 6 spokes; potential for 3 additional hubs and 6 spokes
  • Greater Kolkata: Currently 9 hubs; potential to double hub count
  • Jharkhand: One hub operational; plans for additional hub and 5 spokes
  • Northeast: Hub in Assam with one spoke commissioned; additional spoke planned
  • West Bengal: Several districts still uncovered; expansion planned

Q&A Highlights

  • Margin Guidance: Expect minimum 34% EBITDA margin for FY27; mature center margins sustainable
  • Genomics Scalability: No major additional CapEx expected in next 2-3 years; sufficient capacity exists
  • Cannibalization: Some impact from spoke centers on existing collection centers but overall net positive
  • ROCE/ROE: Lower than industry peers due to high proportion of new centers (27 of 72 centers under 2 years old)
  • Test Volume Growth: 11% YoY with realization growth from mix change rather than price increases