Company has announced 28 Nov as the record date for issuance of bonus. The shares are likely to be credited in demat account on 02 Dec . Maybe the company after 2-3 years will consider a split in FV. As of 30 Sep there are just 54150 odd share holders having 10.6 percent equity.
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Thyrocare Technologies -
Q3 FY 26 results and concall highlights -
Revenues - 196 vs 166 cr, up 18 pc
EBITDA - 57 vs 41 cr, up 38 pc ( margins @ 29 vs 25 pc - massive margin expansion )
PAT - 27 vs 19 cr, up 47 pc ( despite one time exceptional item hit of 6 cr )
Pathology revenues grew by 20 pc, contribution to EBITDA @ 60.5 cr
Radiology revenues de-grew by 7 pc, contribution to EBITDA @ 1.5 cr
Company’s total no of Labs @ 40 ( vs 38 in Q2 ). Zone wise distribution of labs is as follows -
West - 9
East - 6
North - 14
South - 10
International ( @ Tanzania ) - 1
All of company’s labs are NABL certified ( a feat no one else in the Industry has achieved, no body is even close )
Notes from previous concalls -
Company’s Tanzania business is expected to double in FY 26 vs 25. This business should break even in next 1.5-2 yrs time
Company’s franchisee can be a nursing home, standalone hospital, standalone collection center, standalone clinic etc. Out of the 10k franchisees that they have, only 1k use Thyrocare brand. Others collect samples under their own hospital / clinic’s name and send the sample to Thyrocare for testing and get a Thyrocare branded report. Franchisees also provide their own Phlebotomists
Company also has its own dedicated team of aprox 1900 phlebotomists. These ppl service company’s partnerships like bigger hospitals ( corporates ), insurance players, MedTech channels etc ( like PharmEasy )
Most of company’s growth is coming from their bigger franchise partners ( ie top 5k franchisees )
At present B2G is not a large focus area for the company ( At present, 1 pc of company’s sales come from B2G business )
Q2,Q4 are seasonally strong Qtrs. Q1,Q3 are generally softer. Overall H1 vs H2 margins should be similar
Company is investing heavily into their cold chain infrastructure - helps a lot in improving test accuracy, customer satisfaction, franchisee retention, reducing test to result timelines
Notes form Q3 concall -
No of tests performed @ 4.9 vs 4.1 cr, up 21 pc
No of patients tested @ 45 vs 40 lakh, up 14 pc
Active franchisees @ 10.27k vs 9.15k, up 12 pc
Revenue per patient @ 394 vs 371, up 6 pc
Tests per patient @ 11 vs 9.8, up 12 pc
Revenues per test @ 35.9 vs 36.6, down 2 pc
Segmental breakdown of revenues -
Franchise - 112 vs 100 cr, up 12 pc
Partnership - 60 vs 43 cr, up 39 pc
D2C - 10 vs 9 cr, up 12 pc
Have hired Madhuri Dixit as a brand ambassador
Added 200 franchisees in Q3
Have launched allergy tests in Q3. Have also included them in their highest selling Aarogyam packages at no extra cost
Company’s business with Pharmeasy grew by 30 pc YoY. Company’s pre policy medical insurance grew by a massive 70 pc YoY in Q3
Tanzania’s business grew by 140 pc in Q3. Expect the Tanzania business to start breaking even in next 12-18 months
PAT is adversely impacted to the tune of 3 cr due implementation of new labour codes
Company’s team of Phlebotomists now stands @ 2000 personnel
The rapid growth of health tech business + number of new policies issued by health insurance companies - is a huge tailwind for the company ( as they partner with both sets to drive their business )
Company continues to maintain that their long term revenue growth rates should continue to remain in Mid teens
Intend to invest heavily in speciality tests. This should put some pressure on accrual of further operating leverage ( with booming sales growth ) - capping the EBITDA margins. But these speciality tests should help them improve their growth rates
Should end FY 26 with revenues of 4-5 cr in the Tanzania mkt ( a small contribution in overall scheme of things )
Franchise business should continue to grow @ 12-15 pc rates. Partnership business should keep growing @ 18 - 20 pc or so
Should also be entering genomics in near future. There is room for multiple players to exist in the genomics space as it’s in infancy. If a large corporate enters this space and improves awareness, its should be a blessing for the Industry
9M FY 26 capex stood @ 28 cr
As the base of partnership business grows, the growth rates should moderate going forward
My observation - management has a habit of under promising and over delivering
Most of the franchisee additions that the company undertakes happens in Q2 and Q4 ( ie in peak seasons )
Company offers a credit of 60-120 days wrt their partnership business ( also includes their Govt business )
Guiding for similar EBITDA margins going forward ( due higher investments, despite improvements in topline )
Disc: hold a small position, not SEBI registered, biased, not a buy/sell recommendation, posted only for educational purposes
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