Krsnaa Diagnostics Q2 revenue rises 32% while PAT gains 3%

Krsnaa Diagnostics Ltd reported revenue of Rs 271 crore in the second quarter of financial year 2027 (Q2 FY27), up 32% year on year, but profit after tax (PAT) rose only 3% to Rs 24.6 crore as EBITDA margin fell to 27% from 29% and finance costs increased to Rs 15.5 crore from Rs 8.2 crore.

Why did Krsnaa Diagnostics' Q2 profit lag revenue growth?

Krsnaa Diagnostics' profit growth lagged revenue because operating and net margins declined while finance costs rose. Revenue from operations increased from Rs 206 crore in Q2 FY26 to Rs 271 crore in Q2 FY27, while earnings before interest, tax, depreciation and amortisation (EBITDA) before corporate social responsibility (CSR) and employee stock option plan (ESOP) costs rose 20% from Rs 60.2 crore to Rs 71.9 crore. The corresponding EBITDA margin declined to 27% from 29%.

The difference widened below the operating line in Q2 FY27. Profit before tax rose from Rs 31.6 crore to Rs 32.8 crore, but its margin declined to 12% from 15%. PAT increased from Rs 23.9 crore to Rs 24.6 crore, while PAT margin fell to 9% from 12%.

What caused Krsnaa Diagnostics' margin moderation?

Krsnaa Diagnostics attributed margin moderation primarily to the upfront fixed-cost base for Rajasthan laboratories, equipment, manpower and logistics being carried before full utilisation. Total expenses were 73% of Q2 FY27 revenue, compared with 71% in Q2 FY26, alongside the two-percentage-point decline in EBITDA before CSR and ESOP margin to 27%.

Fees to channel partners and collection centres had the largest disclosed increase as a share of revenue. That expense was Rs 50.7 crore, or 19% of Q2 FY27 revenue, compared with Rs 17 crore, or 8%, a year earlier. Cost of material consumed was Rs 55.8 crore, or 21% of revenue, versus Rs 48.1 crore and 23%, while employee benefits expense was Rs 36.7 crore, or 14%, versus Rs 34.8 crore and 17%.

Finance costs added to the pressure after EBITDA, rising by Rs 7.3 crore to Rs 15.5 crore and representing 6% of Q2 FY27 revenue, compared with 4% a year earlier. Depreciation increased to Rs 29.1 crore from Rs 23.6 crore, remaining at 11% of revenue in both periods. Other income rose to Rs 6.2 crore from Rs 4.2 crore.

How fast did Krsnaa Diagnostics' test volumes grow?

Krsnaa Diagnostics performed 30.3 million tests in Q2 FY27, an 85% increase from 16.4 million in Q2 FY26. Patients served increased 35% to 7.3 million from 5.4 million, meaning reported test volume growth exceeded patient growth during the quarter.

Krsnaa Diagnostics reported 75 radiology centres accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH), compared with 36 a year earlier, an increase of 108%. Its National Accreditation Board for Testing and Calibration Laboratories (NABL)-accredited pathology laboratory count was unchanged at 57 in both Q2 FY27 and Q2 FY26. The disclosed accreditation expansion was therefore concentrated in radiology centres.

Krsnaa Diagnostics said its network included 196 computed tomography (CT) and magnetic resonance imaging (MRI) centres, 259 pathology laboratories and more than 8,400 patient touch points. It reported operations in 19 states and Union Territories and 334 districts, with 75% of centres covering rural areas. The presentation does not provide quarterly revenue by geography or diagnostic modality for the 7.3 million patients served in Q2 FY27.

How did Krsnaa Diagnostics' retail business perform?

Krsnaa Diagnostics' retail revenue rose 35% year on year to Rs 23.5 crore in Q2 FY27 from Rs 17.4 crore. Retail contributed 9% of group revenue, up from 8% in Q2 FY26, an increase of one percentage point against group revenue of Rs 271 crore.

Retail patient count increased 45% to 0.26 million from 0.18 million, while retail test volume rose 48% to 0.69 million from 0.47 million. Reported revenue per retail patient declined to Rs 904 from Rs 967. Krsnaa Diagnostics linked the revenue increase to higher patient engagement and expanded reach.

The presentation gives no standalone retail EBITDA, PAT or cost breakdown for Q2 FY27, despite retail revenue of Rs 23.5 crore and a 9% group-revenue contribution. It identifies retail market entry during FY25 in Maharashtra, Assam, Punjab and Orissa. The disclosed data therefore shows retail volume and revenue growth, but not standalone retail profitability.

How did Krsnaa Diagnostics' first-half performance compare?

Krsnaa Diagnostics reported first-half FY27 revenue of Rs 506.5 crore, up from Rs 399 crore in first-half FY26, while PAT declined to Rs 41.1 crore from Rs 44.5 crore. The first-half comparison shows revenue growth alongside a lower reported PAT figure than the prior-year period.

First-half EBITDA before CSR and ESOP was Rs 130.7 crore, compared with Rs 112.6 crore, while the margin declined to 26% from 28%. Finance costs more than doubled to Rs 30.3 crore from Rs 14.5 crore. Profit before tax decreased to Rs 55.2 crore from Rs 59.1 crore, and its margin moved to 11% from 15%.

Sequentially, Q2 FY27 revenue of Rs 271 crore exceeded Q1 FY27 revenue of Rs 235.5 crore. EBITDA before CSR and ESOP increased to Rs 71.9 crore from Rs 58.8 crore, lifting the margin to 27% from 25%, while PAT rose to Rs 24.6 crore from Rs 16.6 crore. Finance costs nevertheless increased to Rs 15.5 crore in Q2 FY27 from Rs 14.8 crore in Q1 FY27.

Conclusion

Krsnaa Diagnostics combined 32% Q2 FY27 revenue growth with an 85% increase in test volumes, but the gain translated into only 3% PAT growth. The reported cost mix shifted, with channel partner and collection-centre fees rising to 19% of revenue from 8%, while EBITDA before CSR and ESOP margin declined by two percentage points and finance costs rose 89% year on year.

The disclosed item to watch is utilisation of Rajasthan laboratories, equipment, manpower and logistics, which Krsnaa Diagnostics identified as the primary reason for margin moderation. Subsequent results will show whether the Q2 sequential rise in EBITDA margin to 27% from 25% and PAT to Rs 24.6 crore from Rs 16.6 crore can continue as those fixed costs are absorbed.