Krsnaa Diagnost.

Krsnaa Diagnostics delivered a strong Q2 FY26, with revenue reaching ₹206 crores, marking an 11% year-on-year growth. The company's EBITDA grew by 18% year-on-year to ₹60 crores, resulting in a healthy 29% margin. Profit after tax (PAT) also saw a significant increase of 22% year-on-year, amounting to ₹24 crores, with a 12% margin. Earnings per share (EPS) for the quarter stood at ₹7.25, up 24% year-on-year, reflecting the maturity and consistency of the business model.

Krsnaa Diagnostics emphasizes its mission to make high-quality diagnostics accessible and affordable across India, operating one of the largest integrated diagnostics networks spanning 18 states and union territories. The company highlights its leadership in radiology services, with over 200 CT and MRI centers deployed or under implementation, making it one of Asia's largest providers. This scale, combined with competitive pricing (40-60% lower than market rates), allows Krsnaa to deliver measurable impact on public health outcomes and create employment opportunities in remote areas.

The Rajasthan PPP project, India's largest diagnostic PPP, is progressing on schedule, with 10 labs expected to be operational soon, and 25 labs plus 500 collection centers by December. The company anticipates meaningful revenue accretion from Q4 FY25 onwards, with a full-year contribution in FY27. Several other marquee PPP projects are also under implementation, reinforcing Krsnaa's nationwide reach and growth momentum. The company's operations are backed by India's first 36 NABH accredited radiology centers and 57 NABL accredited labs, establishing its quality leadership.

Krsnaa's direct-to-consumer (retail) business surged by an impressive 60% quarter-on-quarter in Q2 FY26, contributing approximately 8% of total revenues in the first half of the year. The company expects retail to account for 8-10% of revenue in FY26 and accelerate to 15-20% in the coming financial year, with an aspiration for 40-50% contribution over five years. The retail strategy involves a blend of traditional and modern approaches, leveraging existing infrastructure, technology-led solutions, and a strong field force to enhance accessibility and patient experience, though it is not yet at breakeven.

The company's strong performance is attributed to robust execution, disciplined cost management, and a commitment to operational excellence. Initiatives include enhanced manpower planning for higher productivity, sharpened radiology utilization for advanced modalities, and strengthened supply chain for faster commissioning of new facilities. Continued investment in technology-led automation streamlines workflows, enhancing patient experience and driving scalable operational efficiency. Krsnaa maintains high quality standards, evidenced by its numerous accreditations, including India's first CAP accredited pathology lab in a government facility.

Krsnaa's ROCE is trending towards 15%, indicating improved returns on capital. The company's FY26 planned CAPEX is between ₹150-170 crores, with ₹80 crores already incurred, primarily for radiology equipment. While borrowings have seen an uptick, they are largely for working capital, and management aims to maintain tight control. Receivables currently stand at 150 days, a temporary timing issue due to new central government payment guidelines, but the company is actively working to reduce this to around 100 days by year-end, having already collected over ₹50 crores subsequently.