Krsnaa Diagnostics (KRSNAA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 10% year-over-year to INR 1,745 million, with net profit rising 50% to INR 194 million, driven by strong volumes and operational efficiency.

• Served over 40 million patients in the last three years, with a presence in 18 states and union territories.

• Retail operations expanded to four states, adding 284 collection centers nationwide.

• Temporary Q3 revenue dip attributed to seasonal factors, early BMC project conclusion, and delayed ramp-up in Maharashtra and Madhya Pradesh.

• Board approved unaudited results for Q3 and nine months ended December 31, 2024; Mr. Yash Mutha appointed as Managing Director.

Financial highlights

• Q3 FY25 consolidated revenue: INR 1,745 million (+10% YoY); nine-month revenue: INR 5,311 million (+17% YoY).

• Q3 EBITDA: INR 466 million (27% margin), up 23% YoY; nine-month EBITDA: INR 1,416 million (+39% YoY).

• Q3 net profit: INR 194 million (+50% YoY); nine-month net profit: INR 569 million (+49% YoY).

• Diluted EPS for nine months: INR 17.26 (+47% YoY); Q3 EPS: INR 6.01 (basic).

• Other income in Q3 mainly from interest on fixed deposits and capital gains.

Outlook and guidance

• Management targets 25% revenue growth for FY25, expects strong Q4 and Q1 FY26 as new centers ramp up.

• Retail (B2C) segment contribution currently small but expected to grow significantly in FY26.

• Targeting 500 retail touchpoints and 1,000 B2B partnerships by FY26, leveraging asset-light expansion.

• Receivables from Himachal Pradesh and Karnataka expected to normalize by year-end.

• Management believes ongoing tax proceedings will not materially impact financials.