Krsnaa Diagnostics Limited, a leading provider of diagnostic services in India, has reported a strong performance for the first quarter, along with a significant new contract win in Rajasthan.

Financial Highlights

Krsnaa Diagnostics achieved a revenue of INR 1,930.00 million in Q1, marking a 13% year-over-year growth. The company's EBITDA stood at INR 524.00 million with a 27% margin, while Profit After Tax (PAT) reached INR 205.00 million, representing an 11% margin. Earnings Per Share (EPS) increased by 14% to INR 6.25 from INR 5.46 in the same quarter last year.

Operational Performance

During the quarter, Krsnaa served 5 million patients and processed 16 million tests. The company's retail touchpoints expanded significantly from 362 to 2,414 year-over-year, now contributing 6% of group revenues.

Rajasthan PPP Contract

In a major development, Krsnaa Diagnostics won a substantial Public-Private Partnership (PPP) contract in Rajasthan. The project involves setting up:

• 42 mother labs
• 135 satellite labs
• Over 1,300 collection centers

This contract is expected to generate INR 300.00-350.00 crores in annualized revenue once fully operational. The company plans to invest INR 200.00-250.00 crores in this project, with implementation expected to be completed within 6-9 months.

Expansion and Future Outlook

Krsnaa added 3 labs, 2 CT scanners, and 3 MRI machines in Q1, further expanding its diagnostic capabilities. The company's management expects the retail business to reach EBITDA breakeven by the end of FY26 and aims for it to contribute 5-8% of total revenue by FY26, with a target of 18-20% contribution within two years.

Management Commentary

Yash Mutha, Managing Director of Krsnaa Diagnostics, commented on the results: "Our Q1 performance demonstrates scale with profitability. We are uniquely positioned to lead the growth in the diagnostics sector, operating across 18 states and union territories, delivering integrated radiology, pathology, and teleradiology services."

Regarding the Rajasthan contract, Mutha added, "This is a transformative achievement for us, significantly expanding our presence in pathology services across Rajasthan. We expect material revenues to start flowing from FY27 onwards."

Conclusion

Krsnaa Diagnostics continues to strengthen its position in the Indian diagnostics market through its hybrid model of PPP and retail operations. With its focus on affordable, high-quality diagnostics and strategic expansion plans, the company is well-positioned for sustained growth in the coming years.

Krsnaa Diagnostics Limited has announced its unaudited financial results for the first quarter ended June 30, 2025, showcasing strong growth in both revenue and profitability.

Financial Highlights

• Standalone Revenue: ₹307.82 crores, up 18.26% year-on-year (YoY) from ₹260.29 crores
• Standalone Profit After Tax: ₹41.62 crores, a significant increase of 37.94% YoY from ₹30.17 crores
• Consolidated Revenue: ₹309.26 crores, up 18.26% YoY from ₹261.51 crores
• Quarter-on-Quarter Growth: 4.37% increase in standalone revenue compared to the previous quarter

Key Takeaways

The diagnostic services provider has demonstrated robust financial performance in Q1 FY2026, with double-digit growth in both revenue and profit. The substantial 37.94% jump in standalone profit after tax is particularly noteworthy, indicating improved operational efficiency and cost management.

Board Approval and Disclosure

The Board of Directors of Krsnaa Diagnostics approved these results on August 11, 2025. In compliance with SEBI regulations, the company has published the financial results in both English (Financial Express) and Marathi (Loksatta) newspapers on August 13, 2025.

Investor Relations and Transparency

Krsnaa Diagnostics continues to maintain transparent communication with its stakeholders. The company held an earnings conference call on August 12, 2025, to discuss the Q1 results. An audio recording of this call is available on the company's website for investors who may have missed the live session.

Upcoming Investor Meet

In a move to further engage with the investment community, Krsnaa Diagnostics has scheduled a physical group meeting with Systematix Group on August 21, 2025, in Mumbai. The meeting is set to begin at 14:00 Hrs. (IST) and will focus on publicly available information, adhering to regulatory guidelines regarding the non-disclosure of unpublished price-sensitive information.

Conclusion

Krsnaa Diagnostics' strong Q1 FY2026 performance, coupled with its proactive investor relations initiatives, demonstrates the company's commitment to growth and transparency. As the healthcare sector continues to evolve, Krsnaa's financial results suggest it is well-positioned to capitalize on market opportunities and deliver value to its shareholders.