Suraksha Diagnostic Limited

Suraksha Diagnostic Limited acquired a 63% stake in Fetomat Wellness Private Limited on April 9, 2025, marking a formal entry into genomic medicine. This acquisition is expected to bring significant synergies, focusing on pregnancy care, women's ultrasound scanning, prenatal diagnostics, genetic counseling, and medical training for doctors. Fetomat contributed INR1.3-1.4 crores to revenue in Q1 FY26, with management expecting this contribution to accelerate.

The company launched Suraksha Genomics, a dedicated vertical offering advanced genetic and molecular testing services. This is highlighted as the first complete genomic laboratory facility in Eastern India, encompassing Cytogenetics and next-generation sequencing. An investment of approximately INR22 crores has been made to establish this state-of-the-art lab, which is expected to generate a cumulative revenue of INR40-45 crores over the next two years.

Suraksha continued its network expansion, adding 8 new centers in Q1 FY26, bringing the total network to 58 centers by June 2025. These additions included one large, one medium, four small, and two PPP centers. The company also closed three centers due to term expiry, new center proximity, or government compensation for a PPP project, resulting in a net addition. Management aims to add 15-18 centers in FY26 and target 100 centers within the next 2-3 years.

For Q1 FY26, Suraksha Diagnostic Limited reported a total income of ₹73.49 crores, an 18.83% year-on-year increase. EBITDA grew by 13.51% to ₹24.66 crores, with an EBITDA margin of 33.97%. Profit After Tax (PAT) rose 19.67% year-on-year to ₹9.18 crores, maintaining a PAT margin of 12.64%. The volume growth was strong at 25-26%, though revenue per test declined due to a strategic shift towards B2B business.

Management emphasized that independent diagnostic centers are 30-40% cheaper and more accessible than hospital diagnostics, making them the preferred choice for the majority of patients. The company believes that high-end tests like genomics will be a major growth driver in the coming decade, with hospitals often lacking the necessary infrastructure and personnel. Suraksha's B2B strategy focuses on corporate and esoteric sales, which maintain healthy margins, unlike typical collection center B2B models.

The company plans a capex of approximately INR70 crores for FY26, to be funded primarily through internal accruals, with potential equipment financing if needed, avoiding new debt. This capex will support continued network expansion and the ramp-up of genomic medicine services. Management expects EBITDA and PAT margins to improve as newer centers mature, with a target of maintaining an overall EBITDA margin of around 35% and achieving 15% revenue growth for FY26.