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    Suraksha Diagnostic Q4 FY26 earnings call

    SURAKSHA
    Healthcare·22 May 2026
    Management Summary

    Suraksha Diagnostic Limited concluded FY26 on a strong note with robust revenue growth of 23.1% YoY, driven by network expansion and increased patient volumes. While EBITDA margins saw a slight compression due to new center ramp-up, the company remains focused on operational efficiency and advanced diagnostic capabilities. PAT margins declined due to higher depreciation, finance costs, and tax expenses, but management expects margin stabilization in FY27 as new centers mature.

    Highlights

    5
    • Robust revenue growth: FY26 revenue from operations grew 23.1% YoY to INR3104.1 million, with Q4 FY26 revenue up 25% YoY to INR822 million.

    • Healthy EBITDA performance: FY26 blended EBITDA margin stood at 31.73%, and Q4 FY26 EBITDA increased 26% YoY to INR252 million.

    • Significant patient and test volumes: Served 1.37 million patients and performed 8.16 million clinical tests in FY26, with revenue per patient increasing to INR2,264.

    • Strategic network expansion: Expanded to 68 centers by March 26, including 2 new hub centers, 11 spoke centers, and 3 PPP centers, strengthening presence in Eastern India.

    • Advanced clinical capabilities: Expanded genomics and molecular diagnostics, acquired the first fastest NGS platform in Eastern India, and integrated next-gen 1.5T helium-free MRI technology.

    Concerns

    3
    • PAT margin decline: Q4 FY26 PAT margin decreased to 7.6% from 11% in Q4 FY25, and FY26 PAT margin declined to 10.1% from 12.3% in FY25, primarily due to higher depreciation, finance costs, and tax expenses.

    • EBITDA margin compression: FY26 EBITDA margin saw a slight decline to 31.8% from 33.8% in FY25, attributed to the near-term impact of new center ramp-up and pre-operative expenses.

    • Modest Q4 patient growth: Patient growth in Q4 was modest at around 1.7%, partly due to seasonality and management questioning the reliability of patient count as a definitive metric.

    What Changed2

    vs Q1 FY27

    Guidance items10 → 8 (-2)Risks discussed2 → 3 (+1)
    Key financials

    Metrics

    16

    Periods

    2

    Q4 FY26

    7
    • Revenue
      822 Mn
      YoY+25%
    • EBITDA
      252 Mn
      YoY+26%
    • EBITDA Margin
      31%
    • PAT
      62 Mn
    • PAT Margin
      7.6%

    FY26

    9
    • Revenue
      3,136 Mn
      YoY+22.5%
    • EBITDA
      986 Mn
      YoY+15.8%
    • EBITDA Margin
      31.8%
    • PAT
      314 Mn
      YoY+1.4%
    • PAT Margin
      10.1%

    Segment breakdown

    Pathology
    48.9% Share of Operational Revenue
    Radiology
    44.3% Share of Operational Revenue
    Doctor Consultancy & Polyclinic
    6.9% Share of Operational Revenue
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹70 crores

    Guidance & targets

    8
    CategoryTargetPriority
    Margin
    EBITDA Margin
    33%
    High
    Margin
    EBITDA Margin
    35%
    High
    Margin
    EBITDA Margin
    38-39%
    High
    Network Expansion
    Number of Centers
    100
    High
    Network Expansion
    New Centers
    14
    High
    Revenue
    Revenue Growth
    15%
    High
    Revenue Contribution
    Mature Centers Growth Contribution
    9%
    High
    Capex
    Planned Capex
    INR70 crores
    High

    What to watch in Q1 FY27

    5

    EBITDA Margin Stabilization

    FY27
    Current31.8% (FY26)
    Target~33%

    Why it matters

    EBITDA margin is a key profitability metric, and its stabilization will indicate the operating leverage from maturing new centers.

    For FY27, the EBITDA margin would stabilize at around 33%. Because we are adding many more new centers again this year also. So the pre-operative expenses does give it a hit.

    Risks & concerns

    3
    RiskSeverity

    EBITDA margin compression due to new center ramp-up

    FY26 EBITDA margin declined to 31.8% from 33.8% in FY25 due to the impact of expansion and new center ramp-up, including pre-operative expenses.Management acknowledged

    medium

    PAT margin decline due to increased costs

    FY26 PAT margin declined to 10.1% from 12.3% in FY25, primarily due to higher depreciation, finance costs, and tax expenses associated with expanded infrastructure.Management acknowledged

    medium

    Reliability of patient count as a performance metric

    Management stated that patient growth is not a 'definite matrix' due to the lack of a unique patient ID across the network, leading to potential multiple entries for the same patient.Management downplayed

    low

    Q&A highlights

    8

    “Pre-Ind As EBITDA will be around INR75 crores and PAT will be INR53 crores.”

    Clarifies the company's financial performance under a different accounting standard, which can be important for comparative analysis.

    asked by Dhruv Maheshwari

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Growth

    Suraksha Diagnostic Limited reported a robust financial performance for FY26, with revenue from operations reaching INR3104.1 million, marking a 23.1% year-on-year growth. The company's Q4 FY26 revenue also demonstrated strong momentum, growing 25% YoY to INR822 million. This growth was supported by a stellar three-year revenue CAGR of 17.78% from FY23, showcasing sustained structural growth.

    02

    Genomics and Molecular Diagnostics Expansion

    The company significantly expanded its genomics and molecular diagnostic capabilities through Suraksha Genomics, which is positioned as a key growth pillar. During the year, Suraksha acquired the first fastest NGS platform, Genexus, in Eastern India, enabling results in 48-72 hours compared to the usual 14-21 days. This enhancement aims for deep penetration in the oncology segment and offers advanced testing capabilities across various domains, including prenatal diagnostics and pharmacogenomics. The genomics vertical recorded an incremental business of INR1 crore in Q4, with a monthly run rate of INR35 lakhs.

    03

    Technology and Clinical Capability Enhancements

    Suraksha continued to invest in technology and clinical capabilities, signing an MoU with IIT Kharagpur for AI-driven Alzheimer's detection. The company also established the first high-end MRI training center and introduced the latest automation from Roche in its pathology labs, increasing performance threefold. A significant development was the integration of next-generation 1.5T helium-free MRI technology at Calcutta Medical College, enhancing diagnostic capabilities with zero helium dependency.

    04

    Network Expansion and Regional Strategy

    The company expanded its network to 68 centers by March 26, including 2 new hub centers, 11 spoke centers, and 3 centers under the PPP model. For FY27, Suraksha plans to add 14 new centers, including three new hubs and eight asset-light spoke centers within West Bengal, and specialized hub centers in Bihar, Tripura, and Jharkhand. This multi-state expansion aims to transition Suraksha into a comprehensive regional player beyond its traditional strongholds.

    05

    Profitability and Margin Dynamics

    FY26 blended EBITDA margin stood at 31.73%, yielding an estimated total EBITDA of INR985 million. However, the FY26 EBITDA margin saw a slight decline to 31.8% from 33.8% in FY25, primarily due to the ramp-up of new centers and pre-operative expenses. Mature centers continue to deliver strong EBITDA margins of 36-37%. Management expects EBITDA margins to stabilize at around 33% in FY27 and reach 35% in the mid-term as new centers mature.

    06

    Patient Volume and Revenue Mix

    In FY26, Suraksha served 1.37 million patients and performed 8.16 million clinical tests across its network. The revenue per patient increased to INR2,264, reflecting a shift towards specialized diagnostics and advanced radiology. The revenue mix was diversified, with Pathology contributing 48.85%, Radiology 44.26%, and doctor consultancy/polyclinic ecosystem 6.89% of operational revenue. Patient growth in Q4 was modest at 1.7%, attributed partly to seasonality and high-value tests.

    07

    Capital Expenditure and Future Plans

    The company plans a total capex of approximately INR70 crores for FY27 to support the addition of five hubs and eight spokes. This investment is part of the strategic focus on expanding its footprint across eastern and northeastern India, systematically replicating its high-margin operating model. The company aims to reach 100 centers by FY28, with 14 centers planned for opening in FY27.

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