Financial Performance Q1 FY27

  • Consolidated revenue stood at ₹231 crores, representing 22.8% year-on-year growth
  • Revenue growth driven by test volume growth of 16.5% year-on-year, with balance from test mix changes and realization increases
  • EBITDA reached ₹98 crores compared to ₹74 crores in Q1 FY26, showing 34% year-on-year growth
  • EBITDA margin improved to 42.7%, representing a 360 basis points expansion year-on-year
  • Profit After Tax (PAT) stood at ₹53 crores, growing 37.6% year-on-year
  • PAT margin remained healthy at 23%
  • Revenue per test stood at ₹503 and revenue per footfall at ₹1,860 for the quarter

Operational Highlights

  • B2C revenue contribution remained strong at 92% of total revenue
  • Radiology business contributed 37% to total revenue
  • Network expansion: Total centers reached 166 comprising 51 hubs and 115 spokes with approximately 26 processing units
  • Geography-wise revenue contribution: Hyderabad 67%, rest of AP-Telangana 20%, Pune 6%, West Bengal 4%, other geographies 3%
  • Hyderabad geography grew 17% year-on-year, Pune grew 18% year-on-year
  • Wellness segment contributed 14.8% to revenue, showing continued strength

Expansion and Capex Plans

  • Planned capex of ₹190-195 crores for FY27 expansion
  • Commissioned 2 hub centers in Q1: Bengaluru JP Nagar flagship hub (₹30 crores capex) and Hyderabad Gachibowli hub (₹9 crores capex)
  • Bengaluru hub features advanced imaging including digital PET-CT with inbuilt cardiac CT and 75-centimeter wide-bore 3T Omega MR
  • Plan to commission 9 hub centers and 10-12 spoke centers in next 12 months
  • Additional land acquisition planned in Andhra Pradesh medical hub with estimated investment of ₹8-10 crores
  • State-of-the-art Panjagutta reference laboratory included in capex plans
  • Company maintains strong cash position of approximately ₹330 crores

Management Commentary

  • Existing clusters showing strong operating leverage with mature centers growing at 16%
  • New centers contributed 6-6.5% to revenue with EBITDA burn less than ₹1 crore (0.5% of top line)
  • Expansion strategy focused on deepening presence in Pune, Bangalore, and Kolkata markets
  • Confidence in maintaining above 40% EBITDA margins despite expansion drag
  • Differentiated integrated model driving higher wallet share (₹1,860 per customer vs ₹900-950 for standalone pathology)

Market Position and Competition

  • Outperforming industry growth of 13-14% by 4-5 percentage points
  • Limited competitive intensity in Hyderabad and AP-Telangana as competitors expand outside core markets
  • Strong B2C focus and high-end imaging equipment driving market share gains
  • Average of 3.7 tests per patient compared to 2.5-3 tests for standalone pathology chains

Wellness Segment Development

  • Wellness packages showing strong growth in tier-2 cities
  • Premium packages range from ₹8,000-10,000 for cardiac packages with maximum 20% discount
  • Integration of advanced imaging (full-body MR, cardiac CT) into wellness offerings
  • Digital AI-powered smart reports generated for lifestyle packages

Regional Performance

  • Bangalore expansion progressing with two hubs already breakeven in first year
  • Tier-2 locations (Rajahmundry, Tirupati, Khammam) exceeding expectations with early breakevens
  • Pune strategy being refined with planned hub center to address capacity constraints

Technology and Innovation

  • Selective implementation of AI in radiology reporting after clinical validation
  • Digital initiatives driving wellness education and customer engagement
  • Focus on maintaining data privacy with no current monetization of healthcare data