Krsnaa Diagnostics (KRSNAA) Q2 25/26 earnings summary

Executive summary

• Achieved 11% year-on-year revenue growth in Q2 FY26, reaching INR 2,060 million, with strong performance in both radiology and pathology segments.

• EBITDA grew 18% year-on-year to INR 602 million, with margins expanding to 29%.

• Profit after tax increased 22% year-on-year to INR 239 million, with a 12% margin, marking an all-time high quarterly PAT.

• Retail (direct-to-consumer) business revenue surged 60% quarter-on-quarter, now contributing 8% of total revenues in H1, with touch points up 4.7x year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, in compliance with Indian Accounting Standards and SEBI regulations.

Financial highlights

• Consolidated revenue for Q2 FY26: INR 2,059.91 million, up 11% year-on-year; consolidated net profit: INR 239.45 million.

• EBITDA: INR 602 million, up 18% year-on-year; margin expanded by 221 bps to 29%.

• EPS for Q2 FY26: INR 7.38 (consolidated), up 24% year-on-year.

• Retail revenue expected to reach 8-10% of total in FY26, targeting 15-20% next year.

• Cash and cash equivalents increased to INR 105.60 million as of September 30, 2025 (consolidated).

Outlook and guidance

• Rajasthan PPP project to operationalize 10 labs in November, 25 labs and 500 collection centers by December, and remaining 152 labs and 1,100 centers by Q4.

• Full-year revenue contribution from new PPP projects expected in FY27.

• Retail business projected to reach 40-50% of total revenue in five years.

• Revenue growth guidance in the "higher teens" for the next year or two.

• Management believes ongoing tax proceedings will not materially impact financial position or performance.