Any current/future new fundraising through debt or equity?

The company is managing borrowings primarily for working capital and maintains tight control over debt. For further expansion, including Rajasthan and other PPP projects, they are evaluating the most efficient use of capital, which may involve a combination of debt and equity. No immediate plans or announcements have been made regarding new equity fundraising. Updates on potential debt raising will be communicated once more clarity on Rajasthan projects emerges. The company emphasizes minimizing borrowing to control financial impact and is open to both internal accruals and external funding op

Any current/future capex/capital investment/strategic investment?

For the current fiscal year, excluding Rajasthan, Krsnaa Diagnostics has planned CAPEX of Rs. 150 crores to Rs. 170 crores. Rs. 80 crores of CAPEX has already been incurred: Rs. 50 crores capitalized and Rs. 30 crores in work-in-progress, mainly for radiology equipment. Maharashtra MRI centers are in the final stages of implementation, with assets procured on deferred payments (only 20-25% paid initially). Rajasthan expansion involves establishing around 10 labs by December and 25 labs plus 500 centers by Q4. Deferred payment and lease models for equipment are being leveraged for capital effic

Future growth expectations in sales/revenue/volumes?

Retail segment aims to contribute 40-50% of total sales in the next five years, targeting Rs. 600-1,000 crores sales from retail alone. Revenue growth expected in higher teens percentage over next couple of years. Q4 FY '26 expected to reach Rs. 100 crore quarterly run rate in retail business due to fast expansion. Volume growth strategies include introducing wellness packages and advanced test menus, supporting sustainable growth in both PPP and retail channels. Rajasthan PPP contract expected to kick in FY '27 onwards, providing significant revenue uptick. Overall revenue expected

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

Krsnaa Diagnostics expects robust earnings growth, with EBITDA up 18% YoY to Rs. 60 crore and PAT increasing 22% YoY to Rs. 24 crore in Q2 FY '26. EPS for Q2 FY '26 improved by 24% YoY to Rs. 7.25. Retail segment, growing rapidly, is anticipated to contribute 8%-10% of revenue in FY '26, accelerating to 15%-20% in FY '27, enhancing margins and profitability. The company targets retail revenue to reach 40%-50% in five years, driving overall revenue scale-up. Operational efficiency and margin expansion are ongoing priorities, supported by technology and cost leadership. Break-even for

Current/ Expected Orderbook/ Pending Orders?

Maharashtra: 15 MRI centers are under implementation; 10 are near completion and awaiting inauguration. Rajasthan: Establishing 10 labs soon; target of 25 labs and 500 centers by December, with remaining centers completed in Q4. Pipeline: Several tenders are in various stages across different states; details kept confidential due to competitive nature. No recent awarded tenders reported in past 5-6 months; attributed to tender timing and government processes, not reduced tender pipeline. Ongoing discussions with different state authorities regarding upcoming tenders. The company expects to ann

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Krsnaa Diagnostics LtdQ3 FY25Healthcare Services

Krsnaa Diagnostics Ltd Q3 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

→Retail segment aims to contribute 40-50% of total sales in the next five years, targeting Rs. 600-1,000 crores sales from retail alone.
→Revenue growth expected in higher teens percentage over next couple of years.
→Q4 FY '26 expected to reach Rs. 100 crore quarterly run rate in retail business due to fast expansion.
→Volume growth strategies include introducing wellness packages and advanced test menus, supporting sustainable growth in both PPP and retail channels.
→Rajasthan PPP contract expected to kick in FY '27 onwards, providing significant revenue uptick.
→Overall revenue expected to grow robustly with retail contributing 8-10% in FY '26, accelerating to 15-20% in next financial year.
→Despite temporary receivable-related challenges, growth momentum in both B2G and B2B segments continues.
→Anticipated operating leverage and margin improvement as retail volumes scale up.

Margin guidance

Category 3

→Krsnaa Diagnostics expects robust earnings growth, with EBITDA up 18% YoY to Rs. 60 crore and PAT increasing 22% YoY to Rs. 24 crore in Q2 FY '26.
→EPS for Q2 FY '26 improved by 24% YoY to Rs. 7.25.
→Retail segment, growing rapidly, is anticipated to contribute 8%-10% of revenue in FY '26, accelerating to 15%-20% in FY '27, enhancing margins and profitability.
→The company targets retail revenue to reach 40%-50% in five years, driving overall revenue scale-up.
→Operational efficiency and margin expansion are ongoing priorities, supported by technology and cost leadership.
→Break-even for retail segment is expected around Rs. 100 crore revenue run rate by Q4 FY '26, further boosting profitability.
→Overall revenue growth outlook is in the "higher teens" percentage range in the near term.

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Fundraise plans

Yes

→The company is managing borrowings primarily for working capital and maintains tight control over debt.
→For further expansion, including Rajasthan and other PPP projects, they are evaluating the most efficient use of capital, which may involve a combination of debt and equity.
→No immediate plans or announcements have been made regarding new equity fundraising.
→Updates on potential debt raising will be communicated once more clarity on Rajasthan projects emerges.
→The company emphasizes minimizing borrowing to control financial impact and is open to both internal accruals and external funding options as appropriate.

Order book

→Maharashtra: 15 MRI centers are under implementation; 10 are near completion and awaiting inauguration.
→Rajasthan: Establishing 10 labs soon; target of 25 labs and 500 centers by December, with remaining centers completed in Q4.
→Pipeline: Several tenders are in various stages across different states; details kept confidential due to competitive nature.
→No recent awarded tenders reported in past 5-6 months; attributed to tender timing and government processes, not reduced tender pipeline.
→Ongoing discussions with different state authorities regarding upcoming tenders.
→The company expects to announce results of some contracts in the near future.

Capex plans

Yes

→For the current fiscal year, excluding Rajasthan, Krsnaa Diagnostics has planned CAPEX of Rs. 150 crores to Rs. 170 crores.
→Rs. 80 crores of CAPEX has already been incurred: Rs. 50 crores capitalized and Rs. 30 crores in work-in-progress, mainly for radiology equipment.
→Maharashtra MRI centers are in the final stages of implementation, with assets procured on deferred payments (only 20-25% paid initially).
→Rajasthan expansion involves establishing around 10 labs by December and 25 labs plus 500 centers by Q4.
→Deferred payment and lease models for equipment are being leveraged for capital efficiency.
→The company is evaluating a mix of internal accruals and potential debt for funding CAPEX.
→Additional CAPEX will support new PPP projects and retail network expansion, aiming for a substantial ramp-up in the coming years.

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

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