Any current/future new fundraising through debt or equity?

For the Rajasthan project CAPEX of INR 200-250 crores, Krsnaa Diagnostics is evaluating multiple funding options. Funding sources being considered include a combination of internal accruals, debt at efficient cost of capital, and leasing or reagent rental models. There is no explicit mention of a new equity fundraising currently. On previous PPP projects, the company aims to use the best available capital resources to maintain margins. No detailed fundraising timelines or confirmed debt/equity issuance plans are disclosed; information is being assessed as projects progress.

Future growth expectations in sales/revenue/volumes?

Volume growth currently subdued (~4-5%) compared to industry (~10%) due to suspension of some projects like BMC, but expected to improve with initiatives and awareness campaigns. Management expects volume and revenue growth to be higher than industry averages going forward. Rajasthan PPP contract rollout underway; full implementation of labs and collection centers expected over 6-9 months, with meaningful revenue from next financial year. Retail diagnostics (RPL) rapidly scaling, contributing ~6% of revenues; expected to grow to 5%-8% by FY '26. Retail business targeted to breakeven by FY '26

Future growth expectations in earnings/operating earnings/profits/EPS?

EBITDA grew by 19% YoY to INR 524 million with a 120 bps margin expansion to 27%. Profit after tax increased 15% YoY to INR 205 million with an 11% margin. Earnings per share rose 14% YoY to INR 6.25 in Q1 FY '26. Retail revenue expected to contribute 5% to 8% of total revenue by FY '26, driving growth. The Rajasthan PPP contract will add INR 300-350 crores revenue starting FY '27, supporting top-line growth. EBITDA breakeven for retail venture expected by end of FY '26. The company targets revenue growth better than industry average (~15-16%) going forward. Working capital impro

Current/ Expected Orderbook/ Pending Orders?

The company is actively pursuing tenders but it is too early to provide specific details about the current tender pipeline. As tenders come up, the company will share details accordingly. The Rajasthan PPP contract is a major new order with CAPEX estimated around INR 200-250 crores, expected to start generating revenues from FY 2027. The Rajasthan project includes 42 mother labs, 135 satellite labs, and over 1,300 collection centers targeted for full operations by FY 2026. There is ongoing implementation and expansion of radiology and pathology centers in Maharashtra, Madhya Pradesh, a

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Krsnaa Diagnostics LtdQ2 FY25Healthcare Services

Krsnaa Diagnostics Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹535P/E: 23.6Market Cap: ₹1.9K CrSector: Healthcare Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Volume growth currently subdued (~4-5%) compared to industry (~10%) due to suspension of some projects like BMC, but expected to improve with initiatives and awareness campaigns.
→Management expects volume and revenue growth to be higher than industry averages going forward.
→Rajasthan PPP contract rollout underway; full implementation of labs and collection centers expected over 6-9 months, with meaningful revenue from next financial year.
→Retail diagnostics (RPL) rapidly scaling, contributing ~6% of revenues; expected to grow to 5%-8% by FY '26.
→Retail business targeted to breakeven by FY '26 with 18%-20% revenue contribution anticipated within 1-1.5 years.
→Expansion in Maharashtra, Punjab, Assam, and Odisha, leveraging PPP backbone to accelerate retail growth.
→Long-term strategic partnerships (e.g., with Apulki) provide 30 years revenue visibility.
→Overall outlook indicates sustained growth fueled by PPP contracts, retail expansion, and operational improvements.

Margin guidance

Category 3

→EBITDA grew by 19% YoY to INR 524 million with a 120 bps margin expansion to 27%.
→Profit after tax increased 15% YoY to INR 205 million with an 11% margin.
→Earnings per share rose 14% YoY to INR 6.25 in Q1 FY '26.
→Retail revenue expected to contribute 5% to 8% of total revenue by FY '26, driving growth.
→The Rajasthan PPP contract will add INR 300-350 crores revenue starting FY '27, supporting top-line growth.
→EBITDA breakeven for retail venture expected by end of FY '26.
→The company targets revenue growth better than industry average (~15-16%) going forward.
→Working capital improving, with overdue payments being collected helping cash flow and profitability.
→Broad strategic focus on expanding retail and PPP businesses to drive sustainable revenue and margin growth.

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Fundraise plans

Yes

→For the Rajasthan project CAPEX of INR 200-250 crores, Krsnaa Diagnostics is evaluating multiple funding options.
→Funding sources being considered include a combination of internal accruals, debt at efficient cost of capital, and leasing or reagent rental models.
→There is no explicit mention of a new equity fundraising currently.
→On previous PPP projects, the company aims to use the best available capital resources to maintain margins.
→No detailed fundraising timelines or confirmed debt/equity issuance plans are disclosed; information is being assessed as projects progress.

Order book

→The company is actively pursuing tenders but it is too early to provide specific details about the current tender pipeline.
→As tenders come up, the company will share details accordingly.
→The Rajasthan PPP contract is a major new order with CAPEX estimated around INR 200-250 crores, expected to start generating revenues from FY 2027.
→The Rajasthan project includes 42 mother labs, 135 satellite labs, and over 1,300 collection centers targeted for full operations by FY 2026.
→There is ongoing implementation and expansion of radiology and pathology centers in Maharashtra, Madhya Pradesh, and Uttar Pradesh within the current order book.
→The company has a large radiology footprint with plans to operate over 200 CT and MRI centers post current order book completion.
→Overall, Telangana, Himachal Pradesh, and Karnataka show some recovery and normalization in payments and operations.

Capex plans

Yes

- Rajasthan PPP project: CAPEX increased to around INR 200-250 crores, involving 42 mother labs, 135 satellite labs, and 1,335 collection centers; rollout phased over next 6-9 months, with revenues starting FY '27. - Apulki partnership: Investments in MRI, CT, and pathology equipment (likely INR 10 crores+), with strategic intent for long-term (30 years) revenue visibility; no change in stake currently discussed. - Maharashtra radiology expansion: Completion of major portion (75%) of 73 centers including CT and MRI by end of Q3. - Equipment acquisition strategy: Preference for purchase over lease to align with tender requirements and strategic needs. - Funding strategy: Combination of internal accruals, debt at efficient cost, leasing/reagent rental models being explored for Rajasthan CAPEX. Overall, investments focus on scaling PPP contracts and retail diagnostic infrastructure, targeting profitable growth.

How does Krsnaa Diagnostics Ltd rank vs peers in Healthcare Services?

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