Krsnaa Diagnostics recorded its highest quarterly revenue in Q2 FY27, with revenue from operations increasing 32% year over year to INR 271 crore. Profit after tax rose more slowly, gaining 3% to INR 25 crore from INR 24 crore a year earlier.
For the first half of FY27, revenue reached INR 507 crore, up 27% from INR 399 crore. Managing Director Yash Mutha said this was the first time the company had exceeded INR 500 crore in six-month revenue. He added that growth would have been around 37% if certain contracts had not ended as scheduled.
Profitability came under pressure as the company expanded new projects. Q2 EBITDA before CSR and ESOP expenses increased 20% to INR 72 crore, but the margin declined to 27% from 29% a year earlier. The company cited startup expenses, higher depreciation and finance costs as factors weighing on margins. First-half EBITDA before CSR and ESOP expenses rose 16% to INR 131 crore, while PAT fell 9% to INR 41 crore.
Krsnaa said its network now spans 19 states and union territories, with 259 pathology laboratories, 196 CT and MRI centres and more than 8,400 patient touchpoints. About 75% of its centres serve rural areas. Rajasthan was a key growth area, with 75% to 80% of the laboratories planned under a large public-private partnership project implemented and additional facilities under construction.
The company said retail pathology operations reached operational break-even in September 2026. Management expects the business to reach absolute break-even by late Q3 or early Q4 FY27 and to finish the financial year with positive EBITDA.
Receivables stood at INR 470 crore as of September 30, 2026, while payables rose to INR 230 crore from INR 63 crore, largely due to project-related obligations. Management said it expects to collect about INR 200 crore in Q3, based on discussions with state authorities, and is targeting cash-based revenue of 40% to 45% of its total mix by FY27-end, compared with 35% to 38% currently.
Krsnaa expects the Rajasthan project to support an annualized revenue run rate of about INR 250 crore, with most of that contribution expected in FY28. Other projects identified as growth drivers include a PET/CT facility in Punjab and a CT project in Himachal Pradesh, both under long-term cash-based tenders. The company also aims to return working capital to historical levels of 90 to 100 days over time.
Shares fell 3.72% to $480.15 from the previous close of $498.70, leaving the stock near its reported 52-week low of $463.10 and below its high of $838. The decline followed results in which revenue growth substantially outpaced profit growth, alongside lower margins and elevated receivables.
Sources: Investing.com News.