Standalone Revenue: INR 225.6 crores, up 26.1% Year-on-Year (YoY).
Consolidated Revenue: INR 240 crores, up 24.3% YoY.
Gross Margin: 74.1%, an improvement of 290 basis points YoY.
EBITDA: Grew 34% YoY.
EBITDA Margin: 32.2%.
Profit After Tax (PAT): INR 51.3 crores, up 34% YoY.
PAT Margin: 21.4%.
Earnings Per Share (EPS): INR 3.23, compared to INR 2.41 in the prior year period.
ESOP Charge: Approximately INR 3.5 crores for the quarter.
Business Performance Highlights
Pathology Business: Grew 26% YoY, the primary driver of overall growth.
Franchisee Business: Grew 27% YoY. The active franchisee network reached an all-time high of 11,700, a fourfold increase from 2,700 in FY21.
Partnership Business (B2B): Grew 26% YoY, led by strong momentum in insurance and health tech segments.
Aarogyam Brand: The flagship preventive health check brand grew 21% YoY.
Jaanch Brand: The curative and chronic health brand grew 36% YoY, though it remains a small part (2%) of pathology revenue.
International Business (Tanzania): Reported a two-fold increase in revenue over the corresponding quarter last year.
Radiology Business: Reported an 8% sequential growth over Q4 FY26. On a YoY basis, core revenue declined by 4% due to consolidation of centers. The segment includes the performance of Nuclear Healthcare Limited and Pulse Hitech Limited.
Test Volumes: Grew 28% YoY. The company revised its definition of 'tests conducted' to exclude calculated parameters, providing a like-for-like comparison.
Lab Network: Expanded to 44 labs (43 in India, 1 in Tanzania). Three new labs were opened in Q1 in Muzaffarpur (Bihar), Kurnool (Andhra Pradesh), and Prayagraj (Uttar Pradesh).
Strategic and Operational Updates
Specialty Diagnostics Foray: The company commercially launched its specialty diagnostics business in Q1, starting with allergy (Phadia-based platform) and genomics. Over 20 specialized tests were added, including Histopathology, HPLC, specialized coagulation, Next-Generation Sequencing, PCR (BioFire), Exome Sequencing, and Gut Microbiome. The ambition is for specialty to form 15-20% of the portfolio in a 3-5 year timeline.
Capex: Over INR 250 crores has been invested in the business over the past years for expansion and initiatives. Significant specialty capex is already done and centralized in Mumbai and Delhi labs.
Divestment of Radiology Business: Management is exploring strategic options, including a potential divestment, for the nuclear medicine business (Nuclear Healthcare Limited) due to its low growth and return profile. The process is anticipated to take at least 6 months, with no definitive buyer identified yet. The business contributed approximately INR 1.72 crores PAT in Q1, with full-year expectations around INR 6 crores.
Operational Metrics:
Turnaround Time: 3.37 hours.
Complaint Rate: 3.1 complaints per million tests (Six Sigma level).
Phlebotomist Network: 2,000, with a 99% on-time arrival rate.
Test Menu: Expanded to over 1,375 tests.
Management Commentary & Outlook
Management reiterated its strategy of being the affordable, high-quality B2B partner of choice for front-end diagnostic service providers across India.
The focus remains on driving growth through franchisee expansion, deepening partner relationships, and now expanding into specialty diagnostics with a dedicated commercial team.
For FY27, management maintains its guidance of mid-to-high teens revenue growth for the pathology business, citing a high base in the upcoming quarters.
The company received external recognition as "India's most trusted customer-focused diagnostic brand 2026" and won "Diagnostic Chain of the Year" and "Pathology Lab Chain of the Year" at the Financial Express Healthcare Awards 2026.
