Krsnaa Disgnostics -
Q4 FY 26 results and concall highlights -
Company’s infra -
No of CT centers @ 149
No of MRI centers @ 41
Pathology Refernce labs @ 33 ( up from 6 labs in Q4 FY 25 - a massive jump )
Pathology Mother labs @ 114
Patient collection centers @ 4700+
Once their existing order book is completed - MRI+CT scan centers should increase beyond 200
Shall be setting up ( some are already up ) a total of 7 RefLabs + 41 mother labs @ Rajasthan
Currently working with state govts of - Rajasthan, Delhi, Punjab, HP, JK, UP,MP, Maharashtra, Karnataka, AP, TN, Jharkhand, Orrisa, Assam, Manipur, Tripura, CHD, Meghalaya ( a total of 16 states + 3 UTs covering 331 districts of India )
Retail business has now expanded to 2800 touch points ( mainly in Maharashtra, Punjab, Assam, Odisha, HP )
By 2030, company aspires RPL revenues to be 40-50 pc of company’s sales
Expect the retail business to break even @ annual revenue of 100 cr
Have started venturing into preventive / wellness areas in their retail business. Should help them accelerate growth + improving margins
Q4 outcomes -
Revenues - 192 cr, up 4 pc
EBITDA - 56 cr, up 3 pc ( margins @ 28.5 vs 29 pc )
PAT - 42 vs 21 cr, up 100 pc ( due fair value gain on investments in Apulki Hospitals @ 22 cr )
Notes from Q4 concall -
Retail B2C business clocked 16 cr in revenues in Q4 vs 6 cr in Q4 LY. Rev/Patient in retail business now @ Rs 1503 vs Rs 711 in Q4 LY. B2C now contributes to 8 pc of company’s revenues
Leveraging the existing CT/MRI network (149 CT + 41 MRI centres, Q4 FY26) for their retail venture
Have set up home collection infra @ 20 cities for their B2C business
Region wise revenue breakup -
North - 44%
West - 32%
South - 12%
East - 12%
Going to commission another 17 MRI centers in H1 FY 27 @ Maharashtra
Once the Rajasthan Capex is complete, Rajasthan alone is expected to have 7 Reference + 41 mother labs
Rajasthan is a major pathology project for the company- 27 mother labs & 800+ collection centres rolled out across all 42 districts as of Q4 FY26. Revenue guided at ₹100-150 Cr in FY27. Also has 5 radiology centres. 2 more are expected to be added
Company’s state wise coverage -
Company operates 8 CT centers in UP, 1 CT + MRI center @ Delhi, 10 Path Labs in Assam, 6 Path Labs in Odisha, 5 MRI centers in MP, Provides tele radiology and pathology services in Assam, Manipur, Tripura, Meghalya, 56 MRI + CT centers under implementation @ Maharashtra, 27 mother labs in Rajasthan, Major presence ( could not find the detailed breakup ) in Punjab, Karnataka, HP
Their Rajasthan + Maharashtra + Jharkhand capex should cost them - 300 + 150 + 50 = 500 cr in aggregate - spread ver FY 26,27
Avg tenures of Radiology + Pathology contracts that the company gets into with state govts is 10 yrs and 5 yrs respectively with 2-5 pc annual price escalation clauses. Once the company sets up the required infra, its very difficult for the competitors to outbid them - after the contract expires and comes up for re-tendering
Recievable amount and no of days on 31 Mar 26 stood @ 295 cr and 139 days respectively vs 358 cr and 150 days as on 30 Sep 25
Collections in Q4 stood @ 158 cr - finally a very healthy trend has started to emerge ( let’s see how long does it sustain ). Have had zero bad debts in last 14 yrs
They intend to bring down the receivables below 120 days by end of FY 27
Company is currently in high capex mode. As their new assets / newly deployed capex ( across Maharashtra and Rajasthan ) matures - their return ratios should start to look far better
Have appointed 500 + franchisees for their retail business ( RPL )
Their ability to use their PPP infra for both their B2B and B2C business is a key competitive advantage that the company enjoys
B2C business ramped up from 10 cr to 60 cr in revenues from FY 25 to FY 26
Have declared a divided of Rs 2 / share for FY 26
Rajasthan business has started contributing to revenues in Q1 FY 26. Complete roll out of testing facilities @ Rajasthan is still in progress. Expected to be completed by Q2
Expecting Rajasthan to clock > 100 cr of revenues in FY 27. Can ramp up to > 250 cr / yr at its peak. 200 cr / yr should be the base case by FY 29
Around 10 MRI centers have gone live in Q1 FY 27 in Maharashtra. Another 7 should go live in subsequent Qtrs ( again in Maharashtra )
Continue to remain selective about bidding / going after new govt business. They do participate in new tenders. But only when they think that the economics are sound. Additionally their hands are currently full - as they r executing the large Rajasthan project
Pathology:Radiology revenues breakup for FY 26 ( wrt B2B business ) @ 50:50
The revenue guidance given by the management wrt their Rajasthan project is on the conservative side
In Q1, there are going to be some cost pressures as the Rajasthan ramp up starts and they ve made significant hirings against the same
Expecting Rajasthan contract to clock revenues in the range of 200 cr for FY 28
Company did add 6 CT and 4 MRI centers in FY 26 taking the combined number to 190 vs 180. These additional centers should also ramp up in FY 27 ( + they r going to add 17 more radiology in FY 27 in Maharashtra ).So the total number shall go upto 207 radiology centers
By the end of FY 27 - the number of Reference + satellite labs should go upto - 40 + 155 = 195 ( vs 33 + 114 = 147 at present ). In addition - shall be adding another 102 satellite labs labs in Rajasthan in current FY. So the grand total at the end of FY 27 shall be 195 + 102 = 297
Apulki’s first hospital went live in FY 26. Second hospital is under construction. Krsnaa is their exclusive diagnostics service provider
RPL clocked negative EBITDA margins in FY 26. Should achieve positive double digit EBITDA margins by exit of FY 27
Rajasthan’s capex shall start to be capitalised wef FY 27
Disc: hold a small position, not SEBI registered, not a buy / sell recommendation, posted only for educational purposes
