Krsnaa Diagnostics Ltd Q1 FY27 Earnings Analysis

- Rajasthan project revenue expected between INR 100-150 crores in FY '27, with full installation by Q2 FY '27 and conservative ramp-up assumed. - Radiology revenue growth anticipated in FY '27, with 10 new MRI centers added in Q1 and 7 more in pipeline, totaling ~260 radiology centers by FY '27 end. - Retail diagnostics is a strong growth driver; retail contribution grew to about 8% in FY '26 and is targeted to scale to 25-30% of total revenue over 3-5 years. - Touchpoints in retail network are growing quarter-on-quarter, with 3,500+ collection points and 500+ franchises nationally. - Organic like-to-like growth on existing PPP projects is around 13% annually. - New PPP project pipelines are under consideration with announcements expected by end Q1 FY '27. - EBITDA margins expected to be maintained or marginally improve by year-end FY '27 despite some upfront costs in expansion areas.

- FY '27 expected to see decent scale improvements and at least maintain EBITDA margins, with potential upside from multiple growth levers. - Rajasthan project capitalization from Q1 FY '27 with INR 200+ crore capex expected to contribute positively; some initial depreciation and interest costs to impact margins modestly. - Radiology expansion underway with 10 new MRI centers in Q1 FY '27 and total of 17 centers planned, driving future revenue growth. - Retail segment targets contributing 25%-30% of group revenue over 3-5 years, indicating long-term growth focus. - RPL segment expected to move from marginally negative EBITDA in FY '26 to positive EBITDA in FY '27, aiming to reach consolidated EBITDA levels. - Conservative revenue guidance for Rajasthan (~INR 100-150 crore in FY '27) with aspirations to scale further. - Dividend of INR 2 per share declared, reflecting confidence in cash flows and profitability.

- Rajasthan capital expenditure: Capitalization to happen from Q1 FY '27, around INR 200 crores. - Total INR 500 crores capex planned for FY '27, combining Rajasthan (~INR 300 crores), MRI projects (~INR 150 crores), and smaller projects in Jharkhand and Ranchi. - This INR 500 crores represents capitalization expected in FY '27, involving a mix of debt and internal accruals. - MRI center expansion in Maharashtra includes adding around 10 new MRI centers in the coming quarter (part of a total of 17 centers). - Additional small projects and PPP opportunities under implementation and selective new projects being pursued cautiously. - Upfront manpower deployment for Rajasthan (~5,000 people) will impact near-term costs. - Capital investment focused on strategic growth in existing and new business verticals like pathology, radiology, and retail diagnostics.

- Krsnaa Diagnostics is entering a significant expansion phase which involves capital expenditure of around INR 500 crores in FY '27. - This capex will be funded through a combination of internal accruals and debt. - It is noted that the company has started taking on debt; earlier, Krsnaa had no debt. - Specific details on new fundraising through equity were not mentioned in the provided text. - Management highlighted prudent financial management and a strong leadership team to deliver growth and value. - Any further queries on financial specifics can be directed to the Company Secretary, Mr. Sujoy Bose.

- Current pipeline includes a couple of PPP projects under implementation, with no major new orders announced yet. - Radiology expansion is ongoing with around 10 MRI centers being added in the current quarter and 7 more planned in coming quarters (total 17). - Expected pathology lab network to reach approximately 297 centers by Q2 FY '27, including Rajasthan additions. - Rajasthan project is under implementation, with major installations expected to complete by Q2 FY '27. - No significant new PPP tender pipelines disclosed for FY '27; growth is expected to be calibrated given current capex and project pipeline. - Board and management are selective about new PPP projects, focusing on long-term value creation rather than aggressive bidding. - Maharashtra radiology centers in implementation with some delayed installations; revenues expected this year. - Overall, pipeline is actively managed with focus on quality and sustainable growth rather than volume of orders.