Chandan Healthcare Limited: A Deep Dive into Q3 & 9M FY26 Performance and Strategic Expansion

Chandan Healthcare Limited, a prominent player in India's diagnostic and pharmacy sectors, has reported a robust performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The company's latest investor presentation and earnings call transcript reveal a strategic focus on network expansion, value-added testing, and operational discipline, all contributing to stable margins and consistent growth.

For Q3 FY26, Chandan Healthcare recorded a total income of ₹65.77 crore and an EBITDA of ₹12.61 crore. This represents a healthy 20% year-on-year growth in total income. The nine-month period (9M FY26) saw an even more significant increase, with total income reaching ₹203.27 crore, a 21% rise from ₹167.99 crore in 9M FY25. EBITDA for 9M FY26 stood at ₹42.59 crore, marking a substantial 38.58% growth from ₹30.73 crore in 9M FY25. The company's Profit After Tax (PAT) for Q3 FY26 was ₹4.54 crore, an increase of 7.97% year-on-year, while 9M FY26 PAT grew by 24.71% to ₹20.14 crore.

Segmental Performance and Revenue Mix

Chandan Healthcare operates through a diversified business model encompassing B2C (retail customers), B2B (institutional partnerships), and B2G (government PPP contracts). The company's core business verticals include Pathology, Radiology, and Pharmacy. For FY25, Pathology contributed ₹96.50 crore (41.94%) to the revenue, Radiology accounted for ₹27.80 crore (12.08%), and Pharmacy generated ₹105.80 crore (45.98%). The management aims to achieve an equal revenue mix of 33% from each of the B2C, B2B, and B2G segments, indicating a strategic move towards balancing its revenue streams and reducing dependency on any single channel.

FY25 Revenue Splits by Product

Strategic Initiatives and Expansion Plans

The company has been actively pursuing several strategic initiatives to fuel its growth. A significant development in Q3 FY26 was the completion of a strategic fundraise, involving the issuance of 44,50,000 fully convertible equity warrants on a preferential basis at ₹234 per warrant, totaling approximately ₹104.13 crore. These funds are earmarked for business expansion (₹44.50 crore for new diagnostic labs and centres), acquisitions (₹50.00 crore for centres, equipment, labs, and related assets), and general corporate purposes (₹9.63 crore).

Chandan Healthcare also entered into an exclusive five-year partnership with Jeena Sikho Lifecare to provide comprehensive diagnostic services across its existing and upcoming hospitals and centres. This collaboration is expected to generate meaningful recurring revenues and enhance access to quality diagnostics. The operational rollout under this partnership has already commenced, with diagnostic facilities being set up.

In a move to strengthen its presence in the government sector, the company secured two significant 10-year Public Private Partnership (PPP) projects. One is a radiology imaging project with the Punjab Health Systems Corporation, valued at ₹26 crore, covering multiple government hospitals. The other is for an Advanced Radiology Imaging Diagnostic Centre at Northeast Frontier Railway, Central Hospital (NFRCH), Malegaon, Assam. These PPP projects are expected to add business stability and ensure steady test volumes.

Key Financial Highlights (₹ Crore)

Outlook and Management Commentary

Management is confident about the company's future trajectory, targeting the development of around 100 labs across 17 states and over 1,000 franchise collection points in the next three years. This aggressive expansion is supported by a planned investment of ₹100 crore, focusing on advanced testing capabilities, including molecular diagnostics. The Punjab and Guwahati government project alone is expected to generate ₹52 crore per year, significantly contributing to future revenues.

While acknowledging a one-time exceptional gratuity expense of ₹2.2 crore in Q3 FY26 due to new labor codes, which impacted PAT margins, management emphasized that this was a non-recurring item. They also addressed the increase in employee costs, attributing it to organic expansion and the necessary pre-hiring of staff for new centres. The company is actively working to improve its EBITDA margins, targeting an aggregate of 30% to 35%, with the diagnostic segment already performing above 30% and aiming for 35%. The company's digital-first platform, Chandan 24x7, with over 100K downloads, further strengthens customer loyalty and operational efficiency, offering a unified platform for diagnostics, pharmacy, and doctor consultations.

Chandan Healthcare's strategic clarity, disciplined execution, and diversified growth drivers position it strongly within the evolving Indian healthcare landscape. The company's expansion into underserved Tier 2/3 markets, coupled with technological advancements like AI/ML in diagnostics, underpins its commitment to sustainable long-term growth and enhanced shareholder value.