Chandan Healthca

Chandan Healthcare Limited reported a strong close to FY26, with Q4 revenue reaching INR 77.41 crores, marking an 18.96% year-on-year growth. For the full financial year, total income stood at INR 280.67 crores, a robust 20.43% increase over FY25. EBITDA for FY26 grew by 31.02% to INR 56.84 crores, with the EBITDA margin expanding by 164 basis points to 20.25%. Profit After Tax (PAT) for FY26 increased by 22.04% to INR 27.06 crores, achieving a PAT margin of 9.64%, despite a one-time^📎 exceptional item^📎 of INR 2.92 crores related to new Labor Code implementation.

FY26 was a transformative year, marked by pan-India expansion into 13 states, with plans to add three more. The company secured five 10-year PPP projects totaling an estimated INR 800 crores, including advanced MRI and CT scan systems in Punjab, Haryana, and Assam, which are expected to be operational this financial year. A key partnership with Jeena Sikho, an Ayurveda hospital chain, is scaling across 17 states, with Chandan covering over 50% of their hospitals and clinics, contributing INR 4.5 lakhs in daily revenue. The company also entered premium metro markets like Mumbai, Kolkata, Raipur, and Chandigarh with new diagnostic hubs.

Chandan Healthcare's growth strategy is based on six core pillars, including a 'one district, one lab' approach, aiming to cover all districts of Uttar Pradesh and Uttarakhand within two years. The company plans to scale its franchise network aggressively, targeting 1,000 operational franchises over the next 24 months, supported by UP Government initiatives. For the current financial year, the company targets opening five comprehensive centers and 20 labs, with similar targets for the next financial year, focusing on a step-wise upgradation from standalone labs to comprehensive centers to maintain profitability.

The company is enhancing its service portfolio with advanced diagnostics. Two PET scan centers are slated to become operational in Gorakhpur and Kanpur in Q1 FY27. Chandan is also establishing the first genome lab in Uttar Pradesh at Jankipuram, Lucknow, expected to be operational within five to six months. Additionally, there is a strong focus on preventive health checkup programs, particularly targeting Tier 2 and Tier 3 markets where competition from large pathology players is less intense.

For the current financial year, Chandan Healthcare plans an investment of INR 45-50 crores for new comprehensive centers and labs. This capital expenditure will be funded through a mix of internal accruals and proceeds from warrants issued for INR 104 crores, of which 25% has been received and the remaining 75% is expected within the next year. Management confirmed that this funding is sufficient for current expansion plans, and no further equity dilution is anticipated.

Management clarified that the reported 20.25% consolidated EBITDA margin includes the lower-margin pharmacy business (approx. 5% EBITDA), while the core diagnostic business maintains an EBITDA margin of over 40%. The company aims to maintain consolidated EBITDA between 30-35% in the next two years, eventually targeting 40% plus-minus after two years as expansion stabilizes. Receivables have increased due to government business, where payments can take up to six months, but management assured that there is no risk of bad debt from this segment.