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    Suraksha Diagnostic Limited

    SURAKSHA
    Healthcare·30 May 2025
    Management Summary

    Suraksha Diagnostic Limited delivered a strong FY25 with 15% revenue growth and 16% EBITDA growth, maintaining healthy 34% margins. The company expanded its network to 55 centers and strategically acquired Fetomat Wellness to enhance its fetal medicine offerings. Despite Q4 EBITDA being impacted by one-time costs and operational headwinds, management is optimistic about FY26, guiding for 18-20% revenue growth and 36% EBITDA margins, driven by continued network expansion and stabilization of newer centers.

    Highlights

    5

    • FY25 Total Income grew 15% year-on-year to ₹255.94 crores.

    • FY25 EBITDA registered a healthy growth of 16% to ₹85.09 crores, with margins maintained at approximately 34%.

    • FY25 PAT increased by 34% to ₹30.98 crores, improving PAT margin to 12.3% from 10.6% in FY24.

    • Successfully expanded network by adding 7 new centers in FY25, bringing the total to 55 centers as of March 2025.

    • Strategic acquisition of a majority stake in Fetomat Wellness Private Limited completed in April 2025, enhancing fetal and maternal medicine services.

    Concerns

    3

    • Q4 FY25 EBITDA declined to ₹20 crores from ₹20.4 crores in the prior year, primarily due to one-time costs totaling ₹2.6 crores (₹1.5 Cr for genomic lab validation, ₹60 lakhs for ECL, ₹50 lakhs for GST under RCM).

    • Operational headwinds in FY25 included management's focus on the IPO process, a doctors' strike, and geopolitical developments in Bangladesh, which temporarily impacted operations and delayed center additions.

    • The transfer of the brand name (IP) to the listed entity is still in process with a government organization, with no definitive timeline.

    What Changed1

    vs Q1 FY26

    Guidance items8 → 7 (-1)
    Key financials

    Metrics

    10

    Periods

    2

    Q4 FY25

    3
    • Total Income
      ₹65.91 Cr
      YoY+17.3%
    • EBITDA
      ₹20 Cr
      YoY-2.0%
    • PAT
      ₹7.17 Cr
      YoY+13%

    FY25

    7
    • Total Income
      ₹255.94 Cr
      YoY+15%
    • EBITDA
      ₹85.09 Cr
      YoY+16%
    • EBITDA Margin
      34%
    • PAT
      ₹30.98 Cr
      YoY+34%
    • PAT Margin
      12.3%

    Segment breakdown

    Radiology
    45% Contribution
    Pathology
    51% Contribution
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹70 crores

    M&A

    Fetomat Wellness Private Limited

    acquisition · closed

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Revenue Growth
    18%-20%
    		High
    Profitability
    EBITDA Margin
    ~36%
    		High
    Capex
    Total CAPEX
    ~₹70 Cr
    		High
    Capacity
    New Centers Added
    15-18 centers
    		High
    Volume
    Test Volume Growth
    ~10%
    		Medium
    Pricing
    Price Increase
    ~2-3%
    		Medium
    Fetomat Growth
    Fetomat Revenue Growth
    20%-25%
    		Medium

    FY26 Revenue Growth

    Next quarter (Q1 FY26 results)
    Current15% (FY25)
    Target18%-20% (FY26 guidance)

    Why it matters

    Key indicator of the company's ability to execute on its expansion plans and leverage new centers.

    We are expecting around 18%-20% growth.

    How to verify

    key_financials.metrics[label='Total Income (FY26)'].yoy_growth

    Risks & concerns

    4
    RiskSeverity

    One-time costs impacting Q4 EBITDA

    Q4 FY25 EBITDA was impacted by ₹1.5 Cr for genomic lab validation, ₹60 lakhs for ECL, and ₹50 lakhs for GST under RCM, which are non-recurring. — Management acknowledged

    low

    Operational headwinds (IPO process, doctors' strike, geopolitical issues)

    IPO process, doctors' strike, and geopolitical developments in Bangladesh delayed center openings and impacted cross-border patient business (approx. 5% of patients). — Management acknowledged

    medium

    Competition from listed peers in East India

    Management believes its 93-94% B2C focus and differentiated B2B strategy (specialized tests, better turnaround times) mitigate pricing pressure from competitors. — Analyst downplayed

    low

    Delay in IP (brand name) transfer

    The application for brand name transfer to the listed entity is pending with a government organization, leading to an indefinite timeline. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “So, Deepak, this first, like I mentioned, we are in the process of setting up our genomic lab, so there was a one-off consumption of around Rs. 1.5 Cr because we are validating the tests for our genomic lab. That was one major contribution by which our EBITDA was not as strong. The second thing was the ECL* (* to be read as RCM) that was introduced in November 2024. Expected credit loss. This is because there is an increase in receivables and therefore we had to provision 60 lakhs for the year and the third reason was that there has been an update in November 24 regarding GST payment where even if the property owner does not have GST, Suraksha still has to pay under RCM. Therefore, we made a provision of 50 lakhs over there. This is why the thing has taken a little bit of a hit. But this is a onetime thing.”

    Clarified the specific, non-recurring reasons for Q4 EBITDA decline, providing transparency on margin fluctuations.

    asked by Deepak Malik

    2 min read7 chapters

    Detailed Narrative

    01

    Strong FY25 Performance and Margin Resilience

    Suraksha Diagnostic Limited reported a robust FY25, with total income growing 15% year-on-year to ₹255.94 crores and EBITDA increasing 16% to ₹85.09 crores. The company maintained a healthy EBITDA margin of approximately 34%. PAT also saw significant growth of 34% to ₹30.98 crores, improving the PAT margin to 12.3% from 10.6% in FY24, reflecting strong business fundamentals and disciplined execution.

    02

    Strategic Network Expansion and Patient Metrics

    The company expanded its network by adding 7 new centers in FY25, bringing the total to 55 centers as of March 2025. This expansion was achieved despite operational headwinds, including the IPO process and external challenges🌐. Suraksha served approximately 1.19 million patients, conducting over 6.7 million tests, with revenue per patient growing 10% to ₹2,118 and EBITDA per patient also increasing 10% to ₹715.

    03

    Inorganic Growth through Fetomat Acquisition

    In a strategic move to deepen its service portfolio, Suraksha acquired a 63% equity stake in Fetomat Wellness Private Limited, specializing in fetal and maternal medicine. Completed in April 2025, Fetomat reported a FY25 turnover of ₹4.11 crores and EBITDA of ₹0.6 crore. This acquisition is expected to create synergies with Suraksha's upcoming genomic lab, allowing for comprehensive prenatal diagnostics and advanced maternal therapies across its network.

    04

    Q4 FY25 EBITDA Impacted by One-Time Costs

    Q4 FY25 EBITDA declined slightly to ₹20 crores from ₹20.4 crores in the previous year, primarily due to one-time📎 expenses. These included a ₹1.5 crore consumption cost for genomic lab validation, a ₹60 lakh provision for Expected Credit Loss due to increased receivables, and a ₹50 lakh provision for GST payment under the Reverse Charge Mechanism. Management clarified these were non-recurring📎 items.

    05

    FY26 Growth Outlook and Margin Targets

    For FY26, Suraksha Diagnostic Limited projects a revenue growth of 18%-20% and an EBITDA margin of approximately 36%. This margin expansion is anticipated despite plans to add 15-18 new centers, with 8 centers already slated for Q1 FY26. The company expects operating leverage from increased throughput and stabilization of newer centers to drive profitability.

    06

    Competitive Positioning and B2C Focus

    Suraksha maintains a strong B2C orientation, contributing over 93% of its revenues, which management believes insulates it from pricing pressures in the B2B segment where listed peers often offer discounted services. The company plans to expand its B2B agreements by offering specialized tests and superior turnaround times to nursing homes and hospitals, focusing on services not widely available in Eastern India.

    07

    Capital Expenditure and Future Expansion

    The company has guided for a CAPEX of approximately ₹70 crores for FY26, excluding PPP projects. This capital will be allocated towards opening new centers, with big centers costing around ₹10 crores and small centers between ₹1.5-2 crores. The expansion strategy includes focusing on the districts of West Bengal and exploring further opportunities in the Northeast region, such as Guwahati, where a second center is being built.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.