Concall AI

3B Blackbio — Q1 FY26 earnings call

Call held 19 Aug 2025

Management summary

3B Blackbio reported strong Q1 FY26 results with significant revenue and EBITDA growth, driven by its core MDX business. A key strategic move was the acquisition of Coris Bioconcept, aimed at expanding geographical reach and product portfolio, particularly in AMR. While Coris is currently EBITDA negative, management has a clear roadmap for its turnaround and integration, leveraging its R&D and market presence.

Highlights

Q1 FY26 Sales reached INR 19.96 crores, marking an 18% year-on-year increase.
EBITDA for Q1 FY26 stood at INR 16.19 crores, growing 11% YoY, or 17% excluding a one-time M&A expense of INR 80 lakhs.
The company acquired Coris Holding SRL (parent of Coris Bioconcept) for an upfront cash consideration of GBP 2.15 million, with an earn-out of up to GBP 2.615 million.
Coris Bioconcept reported EUR 5.22 million in top line with a 58.7% gross margin, but was EBITDA negative at EUR 0.215 million.
Management targets 15-20% growth for the Indian MDX business in FY25-26 and 20-25% for exports over the next 2-3 years.
Coris is expected to become EBITDA positive by 2026-27, with revenue projected to reach EUR 7-8 million in 3-4 years at a 10-15% EBITDA margin.

Key financials

01 Sales ₹19.96 Cr +18%YoY
02 EBITDA ₹16.19 Cr +11%YoY
03 Coris Top Line 5.22 Mn
04 Coris Gross Margin 58.7%
05 Coris EBITDA -0.215 Mn

What they filed

Q1 FY27: revenue up 50.7%, net profit down 29.0% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	29	25	23	22	34 +16%	50 +98%	35 +57%	33 +51%
Expenses	13	10	15	10	19	29	27	25
EBITDA	16	15	8	12	15 −9%	22 +44%	8 +7%	9 −28%
Margin	55%	59%	35%	53%	43%	43%	24%	25%
Other income	3	3	5	4	6	6	10	6
Interest	0	0	0	0	0	0	0	0
Depreciation	0	0	0	0	1	0	4	1
Profit before tax	19	18	13	16	20 +2%	27 +51%	15 +17%	13 −17%
Tax rate	23%	24%	36%	20%	23%	16%	33%	32%
Net profit	15	13	8	13	15 +1%	22 +66%	10 +22%	9 −29%
EPS	17.07	15.61	9.79	14.67	17.14	25.32	11.14	11.10

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence

Capex Capex disclosed
- Facility upgrade ₹1 Cr
- Heavy cost equipment ₹1 Cr
So, as such, for next 2 years, we don't see adding too many capital investing. At the most, if we upgrade a facility, it would need maybe INR1 crore or INR2 crores. So, capital, we have sufficient for next 2, 3 years. Sometime, we might buy a very heavy cost equipment, which also is not more than INR1 crore, which we are restricting right now because the MGS technology, which has a heavy machine, we are doing it in a different way rather than to buy a machine for INR7 crores or this thing.
Debt Debt disclosed

Yes. So, there is no debt. The debt is somewhere around INR4 crores to INR5 crores, which is periodically to be repaid over next 2 years or so. And they have a cash balance which is enough to sustain them for 2 years. And because they will be starting to make profits, so it will not be needed.
M&A Coris Holding SRL (parent company of Coris Bioconcept) Acquisition · Signed · Consideration ₹[object Object] (cash)

Strategic fit into IVD space, good R&D team, strong AMR products, geographical expansion into Europe, leveraging existing distribution networks.
Currently EBITDA negative (EUR 0.215 million), expected to be EBITDA positive in 2026-27.

So, your company 3B, along with its UK subsidiary 3B, is pleased to announce that it has entered into a definitive agreement with Avacta Group PLC London to acquire all the shares of Coris Holding SRL, the parent company of Coris Bioconcept, which is a 30-year old manufacturer of rapid diagnostic solutions for an upfront cash concentration of GBP2.15 million, including net cash and customary working capital adjustment, with an on-out base for future business performance of up 2.615 million pay bill, totaling to 2.765 million. And the financial of Coris, according to the latest, EUR5.22 million was their top line, and they had a gross margin of 58.7%. However, they were slight EBITDA negative for 0.215 million. They have an asset of 4.14 million. So, with efforts to launch new products, enter new territories, and introduce better cost management, we expect to be EBITDA positive in 2026-27, as these efforts will take some time to materialize.
Liquidity Cash EUR 1.2 Mn Coris has a cash position of EUR 1.2-1.5 million, which is enough to sustain them for 2 years.

And they have a cash position which is almost 1.2 million or 1.5 million. So, they won't need any cash infusion from us for the next 1 or 2 years. And hopefully, by 1 or 2 years, they would be generating cash.

Guidance & targets

Market Growth

Indian MDX Industry CAGR Market Growth · next few years · High confidence 8-10%

The MDX industry is projected to grow at 8% to 10% CAGR over the next few years in India, due to increasing adoption across diagnostic labs and hospitals and government projects.

— Dhirendra Dubey

Revenue

Company MDX Growth Revenue · FY25-26 · High confidence 15-20%

While this growth is attracting increasing competition, we are hoping to grow at 15% to 20% for FY25-26, backed by our extensive product portfolio and strong market presence over the years, and high quality products will be accepted by the customer.

— Dhirendra Dubey
Coris Revenue Revenue · next three to four years · High confidence EUR 7-8 million

I think it will take some time, but I think in next three to four years, once it starts doing EUR7 million to EUR8 million, then we can think about 10% to 15% of EBITDA margin.

— Dhirendra Dubey
Indian Business Growth Revenue · this year · High confidence 15-20%

We have already said that we will grow this year by 15% to 20%.

— Dhirendra Dubey
Exports Growth Revenue · next 2 to 3 years · High confidence 20-25%

And what I can foresee is that exports will keep on growing at 20% to 25% for next 2 to 3 years.

— Dhirendra Dubey
TRUPCR Exports Revenue Revenue · this year · High confidence INR 17-18 crores

Previously INR 13.91 crores → INR 17-18 crores

So, again, you can talk about touching somewhere around 17 to 18 because this is going to be our major contributor in exports where we are claiming to grow by 20% to 25%. So, it is not static. Last year, 13.91, probably four quarters. If you are saying every quarter, the number was somewhere around four. So, it's the year-on-year which is important. So, this year, instead of 13.91, we should be somewhere around 17 to 18.

— Dhirendra Dubey

Profitability

Coris EBITDA Status Profitability · 2026-27 · High confidence EBITDA positive

So, with efforts to launch new products, enter new territories, and introduce better cost management, we expect to be EBITDA positive in 2026-27, as these efforts will take some time to materialize.

— Dhirendra Dubey
Coris EBITDA Margin Profitability · when revenue reaches EUR 7-8 million · High confidence 10-15%

I think it will take some time, but I think in next three to four years, once it starts doing EUR7 million to EUR8 million, then we can think about 10% to 15% of EBITDA margin.

— Dhirendra Dubey
Indian Business EBITDA Margin Profitability · now onwards · High confidence 55%

Previously 60% → 55%

So, we would have EBITDA margin which would be now onwards towards a 55 site rather than the 60 site.

— Dhirendra Dubey

Revenue Mix

Export Share of Revenue Revenue Mix · after 5 years · Medium confidence 35-40%

From 17-18% today

No, I think currently we are around 17% or 18% is our export and rest is domestic. I think next 5, after 5 years, it should be somewhere around 35% to 40% should be export and 60% odd should be domestic.

— Dhirendra Dubey
Domestic Share of Revenue Revenue Mix · after 5 years · Medium confidence 60-65%

— Dhirendra Dubey

Sales Mix

Coris PCR Kit Sales Sales Mix · in next two or three years · Medium confidence 10-15% of EUR 7-8 million

So, actually, we have just started this process of interacting with the distributors. So, when we say 10% to 15%, we are talking about up to 1 million or so sales from PCR in next two years or three years. It's, of course, a very conservative number because we really don't know how well it will be taken.

— Dhirendra Dubey

What to watch in Q2 FY26

Indian MDX Business Growth

next quarter

Current 18% YoY (Q1 FY26)

Target 15-20% for FY25-26

Why it matters

To verify if the company maintains its targeted growth rate in the domestic market amidst increasing competition.

While this growth is attracting increasing competition, we are hoping to grow at 15% to 20% for FY25-26, backed by our extensive product portfolio and strong market presence over the years, and high quality products will be accepted by the customer.

Risks & concerns

Increasing competition in MDX industry
medium

Increasing competition, especially from small domestic players, is creating pricing pressure and impacting margins.

Management acknowledged
High manpower costs in Europe for Coris
medium

Coris's current EBITDA negative status is primarily due to high manpower costs in Belgium, which will require top-line growth to offset.

Management acknowledged
Time required for Coris turnaround and integration
medium

It will take at least 12 months to restructure and integrate Coris, with EBITDA positivity expected by 2026-27.

Management acknowledged
Regulatory approvals (US FDA) for Coris products
medium

Expanding Coris products to the US market requires FDA approval, which is a time-consuming process.

Management acknowledged
IVDR compliance for Coris products
medium

Coris products need to be IVDR compliant by December 2028, with associated costs of EUR 50,000-70,000 per product.

Management acknowledged

Q&A highlights

6 direct

Key levers for success in molecular diagnostics and margin strategy Direct

So, you know what happens is, this is the cost of goods, which is low. It could be 20%, approximately, which is our case, and it can go up to 35%, 40% in other cases. But then in India, we have the cost of manpower, which is on the lower side. We have the other expenses, which is on the lower side. So, that gives us the benefit of a higher EBITDA.

Explains the company's competitive advantage in India (lower manpower costs) despite high gross margins in the industry, and why margins are not cut.

Asked by Ganesh

Coris acquisition rationale and path to profitability Direct

The AMR product which they have, only two to three companies have it globally. We cannot make it because the antibodies are quite controlled. And these three companies, even if we try to source them, we will get it at a price, which doesn't leave any margin for us. So this product of AMR, which they have got, they have got R&D pipeline products. We can do US FDA of their product.

Clarifies the strategic importance of Coris's AMR products, which are difficult to replicate and have high growth potential, and the plan to achieve EBITDA positivity by 2026-27.

Asked by Suruchi Parmar

Molecular diagnostic market size and company's R&D differentiation Direct

So you see, we are having a range of over 100 products. And in our presentations, we talk about panels, you know. So these are multi-tube assays, like respiratory panel is eight tubes, and we are able to detect 32 organisms, bacteria plus virus. So these are some unique products. We have the meningitis panel, we have the neuro panel. These are not single-tube assays. It takes almost two years to develop them. And because we have been doing this for the last 10, 11 years, it has become our core competency that we can develop multi-tube assays.

Highlights the company's R&D strength in developing complex multi-tube assays and its ability to rapidly develop new assays, which is a key differentiator in the market.

Asked by Kumar Saurabh

Coris manufacturing location and labor cost advantage Direct

No. So, Coris does all the manufacturing in Belgium. And that is the reason why their manpower cost is very high. And now, we're trying to onboard. So, we will try to take up the top line. For the last 2-3 years, there was one more reason why Coris was not growing well. Evacta had acquired it in 23. And Evacta is a therapeutic company because they have some cancer drug delivery molecule. So, their focus is on that. So, the management chief was sitting in US and UK. And this was not their prime focus, which they always say in their presentations also. So, that was one reason why Coris did not grow because the top management was not focused on the growth, could not give a direction to it.

Explains Coris's high manpower costs due to its Belgium manufacturing base and attributes its past slow growth to lack of focus from its previous parent company, Evacta, indicating a potential for turnaround under 3B Blackbio's management.

Asked by Matt Harris

Threat from microfluidic POC and isothermal amplification technologies Direct

So, when you talk about microfluidic POC, so that is already there. And microfluidic POC is normally used for one sample or four samples. So, that is to be dedicated to a hospital because they can process only one or four samples. That is one thing we would want to develop. And it is there in our R&D program. But it is not a threat because our sales is mainly into high volume labs who do more samples at a time and even hospitals who do more samples. ... Isothermal, actually, it was very much hyped during COVID times. It has an easier workflow that you can put it into a machine which is working at the same temperature and you get a result. But it does not -- it cannot do a high number of tests at one time, like high target, like respiratory panel, you're talking about 32 samples.

Management clarifies that while these technologies exist and are part of their R&D, they are not an immediate threat to their current business model focused on high-volume labs and complex multi-target panels.

Asked by Hardick Bora

IVDR compliance for Coris products and associated costs Direct

So, the first part is the IVDR. So, IVDR law says that Class C devices, which is Coris and also ours. If we have signed an agreement with a notified body, which is the ISO certifying body, by May 25, we can continue to sell Class C products till December 28. After December 28, if the product is IVDR compliant, then only it can be sold. So, Coris has got probably 8 to 10 products out of which AMR, which is their main product, contributing almost 60% to 70% revenue that they are going to take forward for IVDR. And there would be a cost which would be somewhere around EUR50,000, because they have got a lot data and all, EUR50,000, EUR70,000, which they have to incur to get the IVDR certification for this. So, which is already incorporated in their cost structure.

Provides clarity on the regulatory timeline for IVDR compliance for Coris's products, the cost involved, and confirms that the main AMR product will be prioritized for certification.

Asked by Prajesh Maroo

3 min read 7 chapters

Detailed narrative

Q1 FY26 Performance Overview

3B Blackbio reported a robust Q1 FY26 with sales reaching INR 19.96 crores, an 18% increase compared to INR 16.94 crores in Q1 last year. EBITDA for the quarter was INR 16.19 crores, showing an 11% year-on-year growth. Excluding a one-time M&A expense of INR 80 lakhs, the adjusted EBITDA growth was 17%, indicating strong underlying operational performance.

Strategic Acquisition of Coris Bioconcept

The company announced the acquisition of Coris Holding SRL, parent of Coris Bioconcept, for an upfront cash consideration of GBP 2.15 million, with an additional earn-out of up to GBP 2.615 million. Coris, a 30-year-old manufacturer of rapid diagnostic solutions, reported EUR 5.22 million in top line with a 58.7% gross margin but was EBITDA negative at EUR 0.215 million. This acquisition is strategic, aiming to expand 3B Blackbio's geographical reach into Europe and strengthen its product portfolio, particularly in Antimicrobial Resistance (AMR).

Growth Strategy for Indian MDX Business

The Indian molecular diagnostics (MDX) industry is projected to grow at an 8-10% CAGR. 3B Blackbio aims to outpace this, targeting 15-20% growth for its Indian MDX business in FY25-26, driven by its extensive product portfolio and strong market presence. However, management anticipates a slight compression in EBITDA margin for the Indian business, from 60% to 55%, due to increasing competition and inflationary pressures.

International Expansion and Export Strategy

The company expects its exports to grow by 20-25% over the next 2-3 years. Specifically, TRUPCR exports are projected to reach INR 17-18 crores this year, up from INR 13.91 crores last year, representing a 30% growth. The UK subsidiary plays a crucial role in catering to European customers, providing technical support and maintaining inventory, which enhances customer confidence and reliability. The long-term vision is to increase the export share of revenue to 35-40% within the next five years.

R&D and Product Pipeline

3B Blackbio emphasizes its strong R&D capabilities, which enable the development of unique multi-tube assays, such as respiratory, meningitis, and neuro panels. The company's ability to rapidly develop assays, as demonstrated during Monkeypox and COVID-19, is a key differentiator. Coris also brings a strong R&D pipeline, particularly in AMR, which will contribute to future top-line growth. Management plans to launch new products from Coris's pipeline within the next 6-12 months.

Capital Allocation and Debt Management

The MDX business is not highly capital intensive. The company has sufficient capacity, with current utilization at 65%, and foresees minimal capex of INR 1-2 crores for facility upgrades or equipment over the next two years. Coris has a debt of INR 4-5 crores, which is expected to be repaid over the next two years, and a cash balance of EUR 1.2-1.5 million, sufficient for its operations. 3B Blackbio continues to actively seek new M&A targets globally, leveraging its available funds.

Industry Dynamics and Competitive Landscape

The molecular diagnostics market in India is still nascent but growing, with increasing adoption in labs and hospitals. While the industry attracts competition, 3B Blackbio differentiates itself through product quality, service, and strong R&D. Management addressed potential threats from microfluidic POC and isothermal amplification technologies, stating they are not immediate risks to their high-volume lab focus but are part of their R&D considerations for future relevance. IVDR compliance for Coris products is a key regulatory focus, with associated costs already factored into their structure.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript