Thyrocare Technologies Limited — Q2 FY26 earnings call

Call held 14 Oct 2025

Management summary

Thyrocare Technologies reported a strong Q2 FY26, achieving record consolidated revenue of INR 217 crores, up 22% YoY, and a significant 470 basis points expansion in standalone normalized EBITDA margin to 36%. This performance was supported by robust test volume growth (21% YoY) and strategic initiatives like franchisee expansion and operational efficiencies. The company also announced a 2:1 bonus share issue and an interim dividend, while acknowledging muted fever-related volumes and seasonal softness expected in Q3.

Highlights

  • Consolidated revenue grew 22% YoY to INR 217 crores, with standalone revenue reaching a record INR 200 crores (up 24% YoY).

  • Standalone normalized EBITDA margin improved by 470 basis points YoY to 36%, driven by operational efficiencies and favorable product mix.

  • PAT and EPS both saw an 82% YoY growth, with EPS at INR 9.05.

  • Processed 53.3 million tests (up 21% YoY) and served 5 million patients (up 12% YoY), demonstrating strong volume growth.

  • The Board approved a 2:1 bonus share issue and an interim dividend of INR 7 per equity share, reflecting confidence and commitment to shareholders.

  • Achieved 3.8% complaints per million, significantly down from 11.8% in Q2 FY25, positioning the company for Six Sigma standards.

Concerns

  • Fever-related volumes were muted this season, down 26% versus the same quarter last year.

  • Management noted that Q3 tends to be seasonally soft, implying potential margin dip before recovery in Q4.

Key financials

  1. Consolidated Revenue ₹217 Cr +22%YoY
  2. Standalone Revenue ₹200 Cr +24%YoY
  3. Standalone Gross Margin 71.6% +1%YoY
  4. Standalone Normalized EBITDA Margin 36% +4.7%YoY
  5. Consolidated Normalized EBITDA Margin 34.8%
  6. Consolidated Normalized EBITDA Growth — +49%YoY
  7. PAT Growth — +82%YoY
  8. EPS ₹9.05 +82%YoY
  9. Tests Processed 53.3 Mn +21%YoY
  10. Patients Served 5 Mn +12%YoY
  11. Non-COVID Growth (4-year CAGR) 19%
  12. Complaints per million 3.8%
  13. Turnaround Time 3.52 hours

What they filed

Q1 FY27: revenue up 24.4%, net profit up 34.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue177 166 187 193 217 +23%196 +18%224 +20%240 +24%
EBITDA48 42 57 58 71 +48%58 +38%75 +32%77 +33%
Net profit26 19 22 38 48 +85%28 +47%49 +123%51 +34%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Franchisee Business
    20% Revenue Growth
  • Partnerships Business
    35% Growth
  • API PharmEasy Diagnostics
    46% Growth
  • Radiology Active Centers
    3% Revenue Growth

Capital allocation

high confidence
  • Capex Capex disclosed
    • Strategic investments in logistics and network capabilities
    • Expansion of labs (37 in India, 1 in Tanzania)
    • Investments in cold chain, data loggers for sample transportation
    • Investments in franchisee expansion (field team of ~40, call center team of ~50)
    Our new activation strategy has been delivering encouraging results by engaging local partners and improving conversion efficiency. We are now seeing consistent growth in sample volumes and new customer additions. We continue to expand deeper into Tier 3 cities and beyond, where we see strong long-term potential. To support this, we have made strategic investments in logistics and network capabilities, ensuring faster turnaround and better service reach. (Page 3); On the logistics front, we have invested very heavily in cold chain. Now every sample transportation box in Thyrocare has a data logger where we are able to track the end-to-end adherence to the cold chain, not just at the start point and the endpoint, but actually across the entire transportation. (Page 16); And we have a call center team of another 50-odd people. So it's almost 100 people that have been invested in franchisee expansion. (Page 16)
  • Debt Debt disclosed
    The company is debt free and on a consolidated basis, holds a net cash and cash equivalents, including short-term mutual funds, of INR190 crores plus. (Page 7)
  • Dividend ₹7/share (interim)
    Board of Directors has declared an interim dividend of INR7 per equity share of the face value of INR10 each pre-bonus issuance. Record date for the interim dividend payout will be considered 24th October 2025. (Page 4)
  • M&A SyncHealth Acquisition · Integrated

    Allowed scaling ECG-At-Home services and entering high-growth pre-policy medical checkup business.

    the acquisition of SyncHealth has allowed us to scale ECG-At-Home services and enter the high-growth pre-policy medical checkup business, further enhancing our value to our insurance partners. (Page 8)
  • M&A Polo and Vimta networks Integration · Integrated

    Streamlined workflows and integrated labs, resulting in a reduction of reported lab count from 39 to 37.

    We have fully integrated the Polo and Vimta networks and gone live with ECG-at-home services via SyncHealth. Our lab network now stands at 37 labs in India and 1 in Tanzania. (Page 5); What we mentioned Rahul mentioned in his opening remarks that we are integrating Polo and Vimta Labs into our labs. So we have integrated two of Polo Labs into our network and hence you are seeing a reduction in count. (Page 13)
  • Liquidity Cash ₹190 Cr Net cash and cash equivalents, including short-term mutual funds. Generated INR 127 crore cash flow from operating activities in H1 '26, up 43% YoY.
    The company is debt free and on a consolidated basis, holds a net cash and cash equivalents, including short-term mutual funds, of INR190 crores plus. (Page 7); In cash flow, in H1 '26, we generated INR127 crore cash flow from operating activities. This is higher by INR38 crores versus last year, which is a year-on-year growth of 43% over H1 FY '25. (Page 7)

Guidance & targets

Quality

  • Complaints per million Quality · soon · High confidence below 3.4 per million
    We have now set a target of achieving Six Sigma level quality, tracking complaints per million with a goal to bring it down below 3.4 per million.

    — Rahul Guha

Tanzania Business

  • Revenue Growth Tanzania Business · this year · High confidence double revenues
    In Tanzania, our business, though nascent, grew 30% quarter-on-quarter and is expected to double revenues this year and achieve operating breakeven in the 18 to 24 months.

    — Rahul Guha

  • Operating Breakeven Tanzania Business · 18 to 24 months · High confidence achieve operating breakeven

    — Rahul Guha

Margins

  • Margin trajectory Margins · Q3 and Q4 · Medium confidence dip a bit in Q3 and pick up in Q4
    Q2 is always strong. Q3 tends to be soft, costs remain fixed, right? And then Q4 tends to be strong again, and we will recover. So, I think we can expect margin to dip a bit in Q3 and pick up in Q4.

    — Rahul Guha

Overall Performance

  • H1 vs H2 Performance Overall Performance · H2 · Medium confidence similar
    I think H1 to H2 will be similar, unless some large investment opportunity comes our way in which we'll then stick to our original guidance. But otherwise, H1 to H2, one can expect similar range, unless some, as I said, large investment opportunity comes our way.

    — Rahul Guha

Volume Growth

  • Volume Growth Rate Volume Growth · coming quarters · Medium confidence much higher

    From mid-teens today

    So this -- the mid-teen volume growth, we are comfortably doing mid-teens at volume growth every quarter. And with the GLP-1 coming into action in the coming quarters, I'm assuming our volume growth will be much higher.

    — Rahul Guha

Radiology Business

  • Revenue Growth Radiology Business · next quarter (OND quarter) · High confidence come back
    And with all the centers fully operational in the OND quarter, we expect revenue growth to also come back in the next quarter.

    — Vikram Gupta

What to watch in Q3 FY26

Tanzania Business Performance

Next 18-24 months for breakeven, this year for doubling revenues.
Current Grew 30% QoQ, nascent.
Target Double revenues this year, achieve operating breakeven.

Why it matters

Indicates success of international expansion and potential for new growth avenues.

In Tanzania, our business, though nascent, grew 30% quarter-on-quarter and is expected to double revenues this year and achieve operating breakeven in the 18 to 24 months.

Risks & concerns

  • Muted fever-related volumes

    medium

    Fever-related volumes were down 26% YoY in Q2 FY26, attributed to government efforts to control viral vectors.

    Management acknowledged

  • Competition in online diagnostics

    medium

    While online players are expanding, pricing has stabilized, and Thyrocare focuses on B2B partnerships rather than direct competition.

    Management acknowledged

  • Seasonal softness in Q3

    low

    Q3 is typically a softer quarter, which might lead to a temporary dip in margins before recovery in Q4.

    Management acknowledged

Q&A highlights

8 direct
Business Model: Franchisee vs. Company-owned & Revenue Split Direct
of the 10,000 franchisees, probably around 1,000 would be fully Thyro branded... that 1,000 will account for about 40% of our revenue.

Clarifies the structure of their B2B model and the revenue contribution from branded franchisees.

Asked by Siddhant K

Franchisee Network Growth & Throughput Direct
most of the growth has come from the diamond to silver, both from a count as well as revenue... we've been able to add a lot of large partners and they have grown very well with us.

Addresses concerns about growth being solely from increasing franchisee count rather than throughput, indicating quality growth from larger partners.

Asked by Bhavya Nahar

GLP-1 Weight Loss Drugs Opportunity Direct
I genuinely believe that is going to be a huge opportunity... we are also in the process of launching complementary packages with the GLP-1 therapy, both pre therapy, during therapy and post therapy.

Highlights a significant new market opportunity and Thyrocare's proactive strategy to capitalize on it with specialized diagnostic packages.

Asked by Krishna Raj K

Online vs. Offline Revenue Mix & Pricing Direct
our franchisee business is largely representative of our offline revenue mix... The partnerships business... can actually take as representative of the online revenue mix. That has grown at about 36% for overall and for API as well.

Provides a clear breakdown of revenue contribution from online (partnerships) and offline (franchisee) channels and their respective growth rates.

Asked by Harsh Kataria

Organic Growth vs. Acquisitions & Lab Count Changes Direct
our organic growth -- inorganic growth contribution is 2%. So of 24%, 22% is organic and 2% is inorganic... we are integrating Polo and Vimta Labs into our labs. So we have integrated two of Polo Labs into our network and hence you are seeing a reduction in count.

Clarifies the contribution of organic growth versus acquisitions and explains the apparent reduction in lab count due to integration.

Asked by Abdulkader Puranwala

GST Impact on Franchisees & Logistics Investments Direct
we have passed on the GST benefit, but we have also got the GST benefit. So effectively, margins are expected to be stable... On the logistics front, we have invested very heavily in cold chain. Now every sample transportation box in Thyrocare has a data logger.

Explains how GST changes were managed to maintain margins and details significant investments in logistics and quality control.

Asked by Yogesh Soni

Radiology Business Strategy Direct
the Radiology business last year was loss making... we said let's forego unprofitable growth, and let's at least focus on ensuring these businesses are contributing to the bottom line... we have increased our realization per scan.

Reveals a strategic shift in the radiology business from growth at all costs to focusing on profitability and improved realization per scan.

Asked by Yogesh Soni

EBITDA Burnout from New Labs Direct
our lab expansion is very thought-through with data where we are able to see where the demand is coming from to one of our, let's say, existing labs and then invest accordingly... For example, in Bhagalpur... on day one, it was full.

Assures that new lab expansions are data-driven and strategically placed to avoid EBITDA burnout, ensuring immediate utilization and profitability.

Asked by Abdulkader Puranwala

3 min read 6 chapters

Detailed narrative

Strong Financial Performance and Shareholder Returns

Thyrocare Technologies delivered a robust Q2 FY26, with consolidated revenue growing 22% year-on-year to INR 217 crores, and standalone revenue reaching a record INR 200 crores, up 24% YoY. The company achieved a standalone normalized EBITDA margin of 36%, an improvement of 470 basis points YoY, driven by operational efficiencies and a favorable product mix. Net profit and EPS both surged by 82% YoY, with EPS reaching INR 9.05. In recognition of this performance and to reward shareholders, the Board approved a 2:1 bonus share issue and an interim dividend of INR 7 per equity share.

Robust Volume Growth and Operational Excellence

The company processed 53.3 million tests, marking a 21% year-on-year increase, and served 5 million patients, up 12% YoY. This growth was supported by a non-COVID CAGR of 19% over the last four years. Thyrocare continues to prioritize quality, achieving 100% NABL accreditation across all labs and reducing complaints per million to 3.8% from 11.8% in Q2 FY25, aiming for Six Sigma standards. Operational efficiency improvements also led to a reduced turnaround time of 3.52 hours after samples reached the lab.

Strategic Expansion and Partnership Growth

Thyrocare's franchisee base expanded significantly to over 10,100 active quarterly franchisees, up from 8,446 in the prior year, supported by a pay-for-performance structure and expanded field teams. The franchisee business revenue grew 20% YoY, while the partnerships business, representing online channels, saw a 35% growth. The API PharmEasy Diagnostics business also contributed strongly with a 46% YoY growth. The company's B2B model, serving various healthcare entities, remains central to its strategy, supported by a network of 1,900 phlebotomists.

Innovation and New Market Opportunities

Thyrocare continues to invest in innovation, having conducted large-scale studies on HbA1c and fever panels, and adding advanced technologies like histopathology and PCR platforms. A significant future growth opportunity is identified in diagnostics related to GLP-1 weight loss drugs, with management actively developing complementary pre, during, and post-therapy packages. The company is also expanding its international footprint, with the nascent Tanzania business growing 30% quarter-on-quarter and projected to double revenues this year, aiming for breakeven within 18-24 months.

Capital Allocation and Infrastructure Investments

The company maintains a strong balance sheet, being debt-free with over INR 190 crores in net cash and cash equivalents. Cash flow from operating activities for H1 FY26 was INR 127 crores, a 43% increase YoY. Strategic investments include heavy expenditure in cold chain logistics, with every sample box now equipped with a data logger for end-to-end tracking. Lab expansion is data-driven, ensuring immediate utilization and avoiding EBITDA burnout, as demonstrated by new labs like Bhagalpur being full from day one. The integration of Polo and Vimta networks has streamlined operations, resulting in a current network of 37 labs in India and one in Tanzania.

Radiology Business Turnaround

The radiology business, which was previously loss-making, has undergone a strategic shift to prioritize profitability over unprofitable growth. While active centers showed a modest 3% YoY revenue growth this quarter, the focus has been on increasing realization per scan. Management expects revenue growth to return in the next quarter (OND quarter) as all centers become fully operational, indicating a successful turnaround and contribution to the bottom line.

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