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    Krsnaa Diagnostics Q1 FY27 earnings call

    KRSNAA
    Healthcare·14 Aug 2026
    Management Summary

    Krsnaa Diagnostics reported a strong 22% YoY revenue growth in Q1 FY27, driven by the ramp-up of the Rajasthan PPP project and robust 64% growth in its retail segment. However, profitability was impacted by upfront costs for new project implementations, leading to EBITDA margin compression to 25%. Management expects margins to improve and the retail segment to become EBITDA positive by Q2 FY27 as projects mature and utilization increases.

    Highlights

    5

    • Revenue from operations for Q1 FY27 stood at INR 2,355 million, representing a 22% year-on-year growth.

    • Retail revenue for Q1 FY27 grew at an impressive 64% year-on-year to INR 193 million, contributing approximately 9% of overall group revenue.

    • Krsnaa was awarded the Himachal Pradesh CT project for 34 CT scans, expanding its footprint in the state from 12 to 34 centers, with this project predominantly being cash-paying.

    • The Rajasthan project has moved decisively from the implementation phase into the go-live and operational phase, with 31 Mother labs, 62 hub labs, and 1,228 collection centers now operational.

    • The company added 12 new NABH Accreditations in Q1, bringing the total accreditation count (including NABL, CAP, and ACR) to 124.

    Concerns

    3

    • EBITDA margin for Q1 FY27 compressed to 25% from 27% in Q1 FY26, primarily due to upfront costs, including onboarding 4,000 manpower in Rajasthan ahead of full revenue realization.

    • PAT for Q1 FY27 stood at INR 166 million, translating to a margin of 7%.

    • Fees to hospitals increased significantly to INR 41 crores, largely on account of revenue share with partners in Rajasthan and Manipur projects for operational support.

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue from Operations2,355 Mn+22%YoY
    2. 02EBITDA588 Mn
    3. 03EBITDA Margin25%-2%YoY
    4. 04PAT166 Mn
    5. 05PAT Margin7%

    Segment breakdown

    Rajasthan PPP
    ₹26 Cr Revenue
    Radiology
    41% Revenue Share
    Pathology
    59% Revenue Share
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Promoter infused funds via warrants for certain capital expenditure for projects and certain acquisitions.

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Rajasthan PPP Revenue
    INR 100-150 crores
    		Medium
    Revenue
    Rajasthan PPP Revenue Growth
    double up
    		High
    Revenue
    Retail Contribution to Overall Revenue
    10% to 15%
    		Medium
    Revenue
    Himachal Pradesh Project Revenue Visibility
    10 years
    		High
    Profitability
    RPL EBITDA Status
    EBITDA positive
    		High
    Margin
    Overall Margins
    improve
    		High
    Margin
    Overall Margins
    double digits
    		Medium
    Volume
    Retail Volume Growth
    exponentially high
    		Medium

    What to watch in Q2 FY27

    5

    RPL EBITDA Status

    Q2 FY27
    CurrentNegative EBITDA in Q1 FY27
    TargetEBITDA positive

    Why it matters

    Indicates the profitability ramp-up of the retail segment, a key growth engine for the company.

    by Q2, we expect RPL to also be EBITDA positive.

    Risks & concerns

    2
    RiskSeverity

    Margin compression due to upfront costs for new projects

    Upfront costs for new projects, especially Rajasthan (4,000 manpower onboarded), led to EBITDA margin compression in Q1, but management expects normalization as utilization improves. — Management acknowledged

    medium

    Delay in receivables recovery from state governments

    While Himachal Pradesh funds have started flowing, recovery from Karnataka has seen some procedural delays, though management expects collection by Q2 FY27. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “So actually, the -- whilst the accounting nomenclature is fees to hospital, this is also - the actual increase is on account of Rajasthan project. So for a project like Rajasthan or even other PPP projects, we have certain partners that we work in these remote locations. And there's a certain revenue share amount that goes to these partners.”

    Explains a significant increase in 'fees to hospital' expense (INR 41 crores) as revenue sharing with partners for large-scale projects like Rajasthan, rather than a direct hospital fee.

    asked by Raman from Sequent Investments

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    Krsnaa Diagnostics reported a 22% year-on-year revenue growth in Q1 FY27, with revenue from operations reaching INR 2,355 million, up from INR 1,930 million in Q1 FY26. Despite this growth, the EBITDA margin compressed to 25% from 27% in the prior year, primarily due to upfront costs associated with new project implementations. The company's net profit for the quarter stood at INR 166 million, resulting in a 7% PAT margin.

    02

    Strategic Growth from PPP and Retail Segments

    The company's growth strategy is centered on its institutional PPP business and the rapidly expanding consumer-facing retail segment. The retail business demonstrated robust performance, growing approximately 64% year-on-year to INR 193 million in Q1 FY27, now contributing 9% to the overall group revenue. This expansion is supported by a network of over 4,000 touch points across 7 states, leveraging asset-light franchisee models and existing PPP infrastructure.

    03

    Rajasthan Project Operationalization and Margin Impact

    The significant Rajasthan PPP project has transitioned from implementation to full operationalization, with 31 Mother labs, 62 hub labs, and 1,228 collection centers now active. This project contributed INR 26 crores in Q1 FY27, and management expects its revenue to double in the coming quarters⏳, targeting INR 100-150 crores for the full year. The initial margin compression was attributed to upfront costs, including onboarding 4,000 manpower, but normalization and margin improvement are anticipated as utilization levels increase.

    04

    Himachal Pradesh Expansion and Quality Focus

    Krsnaa Diagnostics secured the Himachal Pradesh CT project, expanding its presence from 12 to 34 CT scan centers across the state. This project is expected to be predominantly cash-paying and offers revenue visibility for over 10 years. The company also emphasized its commitment to quality by adding 12 new NABH Accreditations in Q1, bringing its total accreditation count to 124, covering NABL, CAP, and ACR standards.

    05

    Innovation, Technology, and New Offerings

    The company is actively integrating artificial intelligence and technology across various operations, including consumer engagement, X-ray reporting, and business analytics. Krsnaa plans to launch a first-of-its-kind proposition in India, combining preventive diagnostics with financial protection. This initiative aims to enhance accessibility and relevance of diagnostics, alongside expanding specialized test portfolios for areas like oncology, cardiac care, and metabolic health.

    06

    Receivables Management and Capital Infusion

    Management provided an update on receivables from state governments, noting that funds have begun flowing from Himachal Pradesh. For Karnataka, discussions are ongoing, and the company expects to collect money by Q2 FY27. To support its growth initiatives, including capital expenditure for projects and potential acquisitions, the promoter infused funds via warrants during the quarter.

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