Chandan Healthcare: A Robust H1 FY26 Fuels Ambitious Pan-India Expansion

Chandan Healthcare Limited, a prominent player in North India's diagnostics and pharmacy sector, has reported a strong financial performance for the first half of fiscal year 2026. The company's consolidated revenue surged by 23.38% to Rs. 137.49 crore, while net profit witnessed an impressive 46.59% jump, reaching Rs. 15.60 crore. This robust growth was underpinned by consistent volume expansion, an optimized business mix, and stringent cost management, reflecting the resilience and effectiveness of its core business model.

During H1 FY26, Chandan Healthcare continued its strategic network expansion, opening six new comprehensive diagnostic centres in key cities such as Patna, Lucknow (Ashiyana), Ayodhya, and Lakhimpur in Uttar Pradesh, as well as new centres in Delhi and Bhopal, Madhya Pradesh. These state-of-the-art facilities are equipped with advanced imaging services, including X-ray, ultrasound, CT scans, MRI, and comprehensive pathology labs, enhancing patient access to quality and affordable healthcare. The company also continued to scale its Chandan Medical Centres, further extending its reach into communities.

Strategic Partnerships and Future Growth Drivers

A significant development during the period was Chandan Healthcare's exclusive strategic partnership with Jeena Sikho Lifecare Limited (JSLL), a leading Ayurvedic healthcare provider. This 5-year agreement positions Chandan as the sole diagnostic partner for all existing and upcoming Jeena Sikho hospitals and clinics across 23 states and over 100 cities. This collaboration is expected to significantly expand Chandan's national footprint and is projected to contribute an additional Rs. 25-50 crore in annual revenue. The company has already commenced sample collection from 34 Jeena Sikho units, with plans to establish 100 labs in 17 states within the next three years, leveraging this partnership for assured business and immediate profitability.

Chandan Healthcare is also making substantial investments in next-generation diagnostics, including the installation of a dedicated molecular genome lab at its Delhi facility. This lab aims to offer high-end genetics and molecular testing services, unlocking new revenue streams. Furthermore, the company has acquired prime real estate in Mumbai, Chandigarh, and Calcutta for new major processing laboratories, which will boost testing capacity, improve turnaround times, and reduce logistical costs across the country.

Financial Summary (Consolidated H1 FY26)

Segmental Performance and Outlook

For H1 FY26, the diagnostic business contributed Rs. 77.63 crore to the total income, while the pharmacy segment contributed approximately Rs. 60 crore. The management aims to increase the pharmacy segment's EBITDA margin to over 10% in the next six months, up from 5.2% in H1 FY26, by leveraging its role as a stockist and expanding its B2C, B2B, and B2G operations. The company projects a shift in its revenue mix, targeting an 80-20 split between diagnostics and pharmacy within the next three years, reflecting a strategic emphasis on the higher-margin diagnostics business.

Chandan Healthcare's expansion strategy includes a mix of owned and franchise-led centres, with a target of 100 new labs and over 1,000 franchise collection points across 17 states in the next three years. This approach, combined with a strong marketing team and established relationships with nearly 30,000 doctors in its core regions, positions the company to compete effectively with larger players. The company's commitment to quality, evidenced by NABL and NABH accreditations, further strengthens its market position.

Capital Allocation and Future Vision

To fuel its ambitious growth plans, Chandan Healthcare successfully raised Rs. 104.13 crore through a preferential issue of fully convertible equity warrants. This funding, supported by both promoter groups and strategic institutional investors, will be primarily deployed towards organic and inorganic expansion, infrastructure upgrades, and strengthening working capital. Management has guided for a consistent net profit and EBITDA growth of 20-25%, demonstrating confidence in its ability to deliver sustainable returns.

Chandan Healthcare's H1 FY26 performance and strategic initiatives underscore its commitment to becoming a leading integrated healthcare solutions provider across North and Central India. With a clear strategy, disciplined execution, and a focus on expanding its footprint and technological capabilities, the company is well-positioned for sustained profitable growth in the years ahead.