Invicta Diagnostic Ltd

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.

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.

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.

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.

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.

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.

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.