Invicta Diagnostic Ltd — Q4 FY26 earnings call

Call held 23 May 2026

Management summary

Invicta Diagnostic Limited reported a robust full-year FY26 performance with total income growing 9.48% YoY to INR33.04 crores and EBITDA increasing 12.48% YoY to INR10.45 crores, driven by strategic network expansion and acquisitions. However, H2 FY26 saw a moderated net profit of INR0.79 crores due to seasonality, increased depreciation, and year-end expenses. The company is in an active investment phase, deploying IPO proceeds for new centers in Pune and Shegaon, and expanding its presence in Nashik through acquisition, while acknowledging potential EBITDA margin contraction during the ramp-up of new facilities.

Highlights

  • Full year FY26 total income grew 9.48% YoY to INR33.04 crores.

  • Full year FY26 EBITDA grew 12.48% YoY to INR10.45 crores, with margins improving to 31.63%.

  • Net profit for the full year FY26 stood at INR4.87 crores, with a net profit margin of 14.74%.

  • Strategic entry into Nashik via acquisition of Vinchurkar Diagnostic Private Limited (51% stake acquired, 95% total for INR7.6 crores), leveraging an established brand.

  • New Pune center (3-Tesla MRI, cardiac 128-slide CT) and Shegaon CT scan center expected to be operational by June-July 2026, driving future growth.

Concerns

  • H2 FY26 net profit was INR0.79 crores, significantly lower than H1, attributed to seasonal sales dip, year-end bonuses (INR1.4 crores), and increased depreciation (INR0.65 crores).

  • Revenue growth moderated despite ongoing expansion, with management citing seasonality (H1 typically 55% of sales, H2 45%).

  • Depreciation expenses increased by approximately 31% to INR3.25 crores in FY26 from INR2.49 crores in FY25 due to higher asset base from investments.

  • EBITDA margins are expected to face pressure and contract as new centers ramp up, as they contribute revenue before becoming operationally break-even.

  • Pricing pressures in advanced imaging services (MRI, CT) due to rising machine costs and stagnant scan prices, mitigated by volume strategy.

Key financials

2 periods

H2 FY26

  • Total Income
    ₹15.96 Cr
  • EBITDA
    ₹3.55 Cr
  • Net Profit
    ₹0.79 Cr
  • EBITDA Margin
    22.4%

FY26

  • Total Income
    ₹33.04 Cr
    YoY +9.5%
  • EBITDA
    ₹10.45 Cr
    YoY +12.5%
  • EBITDA Margin
    31.6%
  • Net Profit
    ₹4.87 Cr
  • Net Profit Margin
    14.7%
  • Depreciation Expenses
    ₹3.25 Cr
    YoY +30.5%

What they filed

₹ Cr · quarterly
Line itemQ2 FY26Q4 FY26
Revenue17 15
EBITDA7 3
Net profit4 1
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 ₹21 Cr
    • Purchase of medical equipment and establishment of 5 new diagnostic centers ₹21 Cr
    • Network expansion, infrastructure strengthening, and long-term capacity creation ₹12.96 Cr
    With reference to our previous communication dated May 19th, 2026 intimating you about the investor and analyst earnings conference call held on Saturday, 23rd May 2026, please find attached transcript of the aforesaid Conference Call. ... As part of this growth phase, depreciation expenses increased by approximately 31% to INR3.25 crores in FY26 from INR2.49 crores in FY25, primarily reflecting the higher asset base created during this year, while newly operational centers are currently in the process of scaling up utilization and pushing patient volumes. ... During FY26 we continued to invest towards network expansion, infrastructure strengthening, and long-term capacity creation, resulting in cash outflow of approximately INR12.96 crores towards the purchase of fixed assets. ... Yes. The first question is regarding the IPO objects. Now, in the IPO, basically, you raised the INR21 crores for purchase of the medical equipments to the establishment of the five new diagnosis centers in Maharashtra. So, can you tell me how much money from that INR21 crores have you deployed already? ... Sir, in the last financial year, we have already disclosed. We have basically, for this amount, we have just utilized INR2.27 crores at this point of time, till 31st March. ... Okay. So, when will you utilize the remaining funds? Timeline, can you tell me? ... So, basically, at this point of time, like I said, Vinchurkar Diagnostics is one of the acquisitions that we are doing through an IPO fund. Over there, we are going to be deploying our Pune Center, which is coming in. Over there, the deployment would be happening. Our Shegaon Center, which is coming. Over there also, the deployment would be there. And for the payment of the PET-CT machines at the Dadar, those funds would be being deployed. ... Sir, at this point of time, if I have to give a timeline, ideally, we would like to deploy this entire fundraising, complete this entire deployment within this financial year itself.
  • Debt Debt disclosed
    And given the fact that we are a debt-free company, access to capital is largely available to us.
  • M&A Vinchurkar Diagnostic Private Limited Acquisition · Closed · Consideration ₹[object Object] (cash)

    Strategic entry into Nashik, leveraging an established healthcare market and one of the oldest brands in the city, in line with Maharashtra-focused expansion strategy.

    Vinchurkar had a top line of ~INR5 crores and 30% EBITDA of INR1.5 crores in the last financial year.

    We also marked our strategic entry into Nashik through the acquisition of Vinchurkar Diagnostic Private Limited. This transaction, unlike our previous greenfield projects, is actually an acquisition where we have agreed to acquire a 95% stake for a total consideration of INR7.6 crores. We already completed the first phase of the transaction through the acquisition of a 51% controlling stake. This acquisition provides us entry into a well-established healthcare market. In addition to that, it allows us to leverage one of the oldest brands in the city of Nashik and is very much in line with our Maharashtra-focused expansion strategy. ... Sir, rather than getting specifically in the figures which are there, I would talk about the growth that we are achieving, right? So, with regards to the Vinchurkar Diagnostics that we have acquired, last financial year, they had a top line of around INR5-odd crores and a 30% EBITDA of INR1.5 crores, right? That is what they have closed. We have taken on that 51% and we are acquiring the balance portion within the next three months.
  • Liquidity Liquidity disclosed Company is debt-free and cash flow positive, ensuring access to capital for growth.
    And given the fact that we are a debt-free company, access to capital is largely available to us. So, that part should not be challenging. And we are again an extremely cash flow positive company. So, even servicing of that debt will be very convenient, very easy for us.

Guidance & targets

Expansion

  • Number of centers Expansion · next 3 years · High confidence 3x current number
    Goes without saying Aditya. Aditya, just to bring this in perspective, at this point of time from the day of my IPO where I had four hub centers, and overall other spoke centers which were there, I am at this point of time setting up four additional hubs right now. So, that's an almost doubling of my hub center expansion which is there. ... So, that goal of expansion, increasing the numbers by around three times is very much part of our target and we are looking to achieve the same.

    — Rohit Srivastava

Operational Efficiency

  • New center operational break-even Operational Efficiency · post setup · High confidence within 6-7 months
    our goal usually is to achieve operational break-even for any diagnostic center which is set up within six to seven months of its setup. That is usually our goal. That is what we have seen in our history. That usually centers achieve operational break-even during this period of time.

    — Rohit Srivastava

Capital Deployment

  • Utilization of IPO proceeds Capital Deployment · this financial year (FY27) · High confidence entire fundraising
    Sir, at this point of time, if I have to give a timeline, ideally, we would like to deploy this entire fundraising, complete this entire deployment within this financial year itself.

    — Rohit Srivastava

Acquisition

  • Acquisition of remaining stake in Vinchurkar Diagnostic Acquisition · within the next three months · High confidence balance portion
    We have taken on that 51% and we are acquiring the balance portion within the next three months.

    — Rohit Srivastava

New Center Launch

  • Pune center operationalization New Center Launch · by the month of June · High confidence operational
    And we expect this center of ours to be operational by the month of June.

    — Rohit Srivastava

  • Shegaon center operationalization New Center Launch · between June to July · High confidence operational
    We expect this center to be operational between June to July.

    — Rohit Srivastava

What to watch in Q1 FY27

Pune Center Operationalization

by June 2026
Current Under construction
Target Commercial operations

Why it matters

Successful operationalization of the Pune center is key to driving future revenue growth and expanding geographic footprint.

This includes a 3-Tesla MRI and a cardiac 128-slide CT and also the setup of a full-fledged clinical pathology setup. ... And we expect this center of ours to be operational by the month of June.

Risks & concerns

  • Wrong site selection for new centers

    medium

    If a new center's site selection is wrong, it might not achieve the targeted operational rate within 6-7 months, impacting profitability.

    So, the risks which are there with regards to expansion on the primary risk which is there with us is if the site selection goes wrong. I mean, despite all the research and everything that we do, if after putting up, we are not able to, achieve the operational rate even within 6 to 7 months, that becomes a major risk for us.

    Management acknowledged

  • Hyper-competition in specific geographic locations

    medium

    Entry of multiple MRI centers in a short span of time in a particular geographic area can lead to hyper-competitive conditions.

    The second risk is that entry of extreme competition following us. So, that is not of course controllable by us, but if a particular geographic location becomes hyper competitive. Now, I mean, for those people who are from Mumbai, if I were to give an example of a location such as that, I would talk about Ghatkopar. Ghatkopar West especially, has been a hyper competitive area because of the entry of multiple MRI centers within a very short span of time following each other.

    Management acknowledged

  • Pricing pressures in advanced imaging services

    medium

    Machine costs are rising due to dollar appreciation, but scan prices have remained stagnant for 15 years, impacting margins. Mitigated by increasing capacity and volume.

    So, there is pricing pressure for sure. See, we'll have to talk a little historically. What has happened is that the dollar has gone on appreciating against the rupee. The cost of machines are going up, but our scan prices for the last 15 years have almost remained the same. ... So, that's why at this point of time, we are focusing on increasing the capacity and finding ways to do scans on a faster pace so that we can offset the pricing pressure by doing a higher volume.

    Management acknowledged

  • Helium supply disruption and price impact

    medium

    Conflict in the Middle East has disrupted helium supply, impacting machine prices. Current expansions are not affected due to prior contracts, but it remains a future risk.

    So, that's a fantastic observation. The fact is that, yes, helium has drastically been impacted and we are seeing incremental prices for the machines being impacted due to that. But luckily for us, all our contracts and everything that we entered into were prior to these escalations coming into play. So, our current expansions which are underway have not been adversely impacted and we've managed to arrange the helium. But that remains a risk going forward.

    Analyst acknowledged

  • EBITDA margin contraction during new center ramp-up

    medium

    As new centers expand, they will add revenue but not immediate EBITDA, leading to margin pressure until they reach operational break-even.

    Ma'am, that's a very good question. The short answer is no because what is going to happen as our centers expand is that they will add revenue. My older centers which are there, they will continue to perform and deliver EBITDA to me. But as my centers expand, they will contribute revenue. ... So, that would drag my margins down. The second part is for me to arrive at this 30% EBITDA, it takes a period of time. So, yes, there would be margin pressure, but while the percentage might fall down, our goal is to have incremental EBITDA year-on-year despite the margin contraction which may happen.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Moderated revenue growth and H2 performance Direct
If your question was more related to why there was a dip in the overall sales in the second half compared to the first half, this was primarily, this is a very, very common to most diagnostic companies because the first half of a financial year has almost, accounts for almost 55% of the sales whereas the second half accounts for around 45.

Analyst challenged the moderated growth and low H2 profit; management explained it as seasonal and due to year-end expenses, providing context for future expectations.

Asked by Mahesh Sheth

Pathology contribution and scaling strategy Direct
What we are focusing on is growth through pathology where ancillary tests which come with our radiology are done. So, that is what we are primarily catering to. We are also looking to increase our outreach towards doctors or additional pathology coming from them within these particular centers itself.

Clarified the company's strategy for pathology growth, focusing on ancillary tests and doctor outreach rather than aggressive entry into the hyper-competitive home collection market.

Asked by Mahesh Sheth

Capacity utilization and new center stabilization Direct
In our existing centers which have been operational for a few years, we are at very mature stages of utilization between 75% to 85% of capacity utilization. This capacity prima facie is unique to MRI because with CT, we do not face the challenge. ... our goal usually is to achieve operational break-even for any diagnostic center which is set up within six to seven months of its setup.

Provided insight into current operational efficiency, capacity headroom for MRI, and the expected ramp-up timeline for new centers to achieve break-even.

Asked by Mahesh Sheth

Hiring and retention of skilled staff in new cities Direct
So, the acquisition, the hiring of skilled staff is always a challenge. But given our network and outreach that we have developed over a period of years, not just to MMR but our network that we have with a lot of radiologists across the state, the challenge is somewhat mitigated. This challenge is particularly common with regards to sonography because for sonography, the radiologist himself or herself has to do the scan by his hand.

Addressed a critical operational challenge in the healthcare sector, highlighting the role of tele-radiology and existing network in mitigating risks.

Asked by Priya Jain

Utilization of IPO proceeds and timeline Direct
Sir, in the last financial year, we have already disclosed. We have basically, for this amount, we have just utilized INR2.27 crores at this point of time, till 31st March. ... Sir, at this point of time, if I have to give a timeline, ideally, we would like to deploy this entire fundraising, complete this entire deployment within this financial year itself.

Provided clarity on the deployment status of IPO funds and a commitment to fully utilize the remaining INR18.73 crores within the current financial year (FY27).

Asked by Amit

Drop in test volume in FY26 Direct
So, we look to get the capacity utilization as close to maximum that we can. Once we start achieving that, it is not physically possible for us to add on more number of patients over there. So, at that point of time, what we start doing is that we increase the pricing, right? So, a few of the clientele which are on the lower side of it, they start dropping off and start again going to government centers rather than coming to us. But our overall pricing, which is there, goes up or the net realization per test goes up, per patient goes up.

Explained the strategic rationale behind a decline in test volume, indicating a shift from discounted volume to higher-priced, higher-realization tests as centers mature.

Asked by Amit

Guidance for H1 FY27/Full Year FY27 Evasive
Okay. Hi, this is Soniya Mahajan, Company Secretary. Sorry, sir, actually, we would not be in position to share any information that has not been publicly disclosed.

Management declined to provide specific forward guidance for FY27, citing compliance restrictions, which left the analyst's concern about H2 performance unaddressed with concrete future targets.

Asked by Amit

Major risks in current expansion plan Direct
So, the risks which are there with regards to expansion on the primary risk which is there with us is if the site selection goes wrong. I mean, despite all the research and everything that we do, if after putting up, we are not able to, achieve the operational rate even within 6 to 7 months, that becomes a major risk for us. The second risk is that entry of extreme competition following us.

Identified key strategic risks for the company's growth, including site selection and hyper-competition, which are crucial for investors to monitor.

Asked by Anjana Nambiar

3 min read 7 chapters

Detailed narrative

H2 FY26 Financial Performance and Seasonality

Invicta reported a total income of INR15.96 crores and an EBITDA of INR3.55 crores for H2 FY26, with a net profit of INR0.79 crores. The EBITDA margin for this period was 22.4%. Management attributed the lower H2 performance compared to H1 to seasonal factors, with H1 typically accounting for 55% of annual sales due to monsoon-related illnesses, while H2 (October-March) accounts for 45% due to holidays and travel. Additionally, H2 saw higher employee benefit expenses (INR1.4 crores) and increased depreciation (INR0.65 crores) impacting net profit.

Full Year FY26 Growth and Profitability

For the full financial year FY26, Invicta's total income increased to INR33.04 crores, marking a 9.48% growth from INR30.18 crores in FY25. EBITDA also saw a significant increase of 12.48% to INR10.45 crores from INR9.29 crores in FY25, with EBITDA margins improving to 31.63%. The net profit for FY26 stood at INR4.87 crores, achieving a net profit margin of 14.74%. This growth was achieved despite a 30.52% increase in depreciation expenses to INR3.25 crores in FY26, reflecting the company's active investment phase.

Strategic Expansion and New Center Launches

Invicta is in an active expansion phase, with new centers planned and operationalized. The Dadar center, strategically located near Tata Memorial Hospital, commenced commercial operations in January 2026 and has already shown strong demand, performing approximately 80 PET scans in its second month. The company is also setting up a marquee center in Pune, featuring a 3-Tesla MRI and cardiac 128-slide CT, expected to be operational by June 2026. Furthermore, a CT scan center in Shegaon is anticipated to be operational between June and July 2026.

Acquisition-led Growth in Nashik

The company made a strategic entry into Nashik through the acquisition of Vinchurkar Diagnostic Private Limited. Invicta has agreed to acquire a 95% stake for a total consideration of INR7.6 crores, with a 51% controlling stake already acquired. The remaining 49% is expected to be acquired within the next three months. Vinchurkar Diagnostic reported a top line of approximately INR5 crores and an EBITDA of INR1.5 crores (30% margin) in the last financial year, providing Invicta with immediate entry into a well-established healthcare market and leveraging an existing brand.

Pathology Strategy and Business Mix

While radiology remains the core strength, contributing over 90% of revenue, Invicta aims to increase pathology's contribution. The strategy focuses on ancillary tests accompanying radiology services and increasing doctor outreach, rather than aggressively entering the hyper-competitive home collection market. This approach allows the company to leverage its existing infrastructure and patient ecosystem, enhancing service offerings without engaging in price wars.

Capital Allocation and IPO Proceeds Utilization

Invicta raised INR21 crores through its IPO for the purchase of medical equipment and the establishment of five new diagnostic centers. As of March 31, 2026, INR2.27 crores of these proceeds have been utilized. The company plans to deploy the remaining funds within the current financial year (FY27) for projects including the Pune and Shegaon centers, and PET-CT machines at the Dadar facility. Management emphasized that the company is debt-free and cash flow positive, ensuring sufficient capital for its expansion plans.

Operational Efficiency and Pricing Strategy

Existing centers operate at 75-85% capacity utilization for MRI, with CT scans having higher capacity. New centers are targeted to achieve operational break-even within 6-7 months of setup. The company's pricing strategy involves initially offering discounted tests to build volume and then increasing prices as capacity utilization matures, leading to a higher net realization per test despite a potential drop in overall test volumes. This approach ensures profitability and efficient use of assets.

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