Krsnaa Diagnostics just posted 22% revenue growth. Its stock-friendly narrative talks about “purpose” and “Bharat Ka Bharosemand Diagnostics.”
Here’s what the transcript and presentation actually show, and the questions we’d still want answered before treating this quarter as a green light, but before that:
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Krsnaa Diagnostics: This diagnostics company prices 90% below the market
Notes from the presentation and concall:
Revenue up 22%, but profit down. Q1 FY27 revenue was ₹2,355mn (Q1 FY26: ₹1,930mn), but EBITDA margin compressed to 25% from 27%, and PAT fell 19% YoY to ₹166mn (margin down from 11% to 7%). Management attributes this entirely to Rajasthan project ramp-up costs — worth watching whether margins actually recover as guided.
“Fees to hospitals” jumped from ₹15.4 crores to ₹40.6 crores YoY (+164%). This was the single most-pressed question on the call. Management’s explanation: it’s revenue-share paid to local partners executing the Rajasthan PPP rollout, not literal hospital fees — a reminder that P&L line-item names in Indian diagnostics/healthcare filings don’t always mean what they say.
Guidance walked back mid-call. Management had previously guided ₹200–250 crores from Rajasthan PPP for FY27. On this call, that shifted to “₹100–150 crores… as an aspiration” — with the CEO stepping in to soften it further to “closer to 150, 175” on a steady-state basis. A guidance cut disguised as “conservatism” is still a guidance cut.
Retail (RPL) is the bright spot — but still loss-making. Retail revenue grew 64% YoY to ₹193mn (now 8% of group revenue, up from 1%), but RPL remains EBITDA-negative in Q1, with breakeven promised by Q2. Worth tracking whether that promise holds — it was made about Rajasthan too.
Receivables concentration risk in 3 states. Himachal Pradesh, Karnataka, and (partly) Maharashtra were flagged as states where government dues are overdue, with management saying teams are “working ferociously” to recover money. Government-receivable stress is a recurring feature of PPP-model diagnostics businesses — not unique to Krsnaa, but worth tracking as a pattern.
New win: Himachal Pradesh CT project (34 centers, mostly cash-pay), 10-year revenue visibility. A genuine positive — expands a state where Krsnaa already has a 12-year track record, and it’s structured as cash business rather than another slow-paying PPP receivable.
We track companies with solid balance sheets, low-key execution, before they show up on everyone’s radar — and break down the numbers that actually matter in our research.
As always, this is not a stock recommendation — This note is for informational purposes only and not a buy/sell recommendation. Please do your own due diligence before investing.
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Ekansh Mittal
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