Krsnaa Q2 revenue hits Rs 271 crore as PAT margin falls

Krsnaa Diagnostics Ltd. reported record revenue from operations of Rs 271 crore in Q2 FY2027, up 32% year on year, while its profit after tax, or PAT, margin fell to 9% from 12%. Krsnaa attributed moderation in H1 FY2027 profitability primarily to upfront expenditure for its Rajasthan project.

What did Krsnaa report for Q2 FY2027?

Krsnaa reported revenue from operations of Rs 271 crore for Q2 FY2027, compared with Rs 206 crore in Q2 FY2026. The 32% year-on-year increase was its highest quarterly revenue disclosed in the November 2, 2026 release and reflected newly operationalised projects, growth in existing operations and retail expansion.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose to Rs 71.9 crore in Q2 FY2027 from Rs 60.2 crore a year earlier. EBITDA growth of 19% was below the 32% increase in revenue, and the EBITDA margin declined to 27% from 29%.

PAT was Rs 24.6 crore in Q2 FY2027, compared with Rs 23.9 crore in Q2 FY2026. Revenue therefore rose by Rs 65 crore while PAT increased by Rs 0.7 crore, resulting in a three-percentage-point decline in PAT margin to 9%.

Why did Krsnaa's PAT margin decline to 9%?

Krsnaa said the moderation in H1 FY2027 profitability was primarily attributable to upfront expenditure towards the Rajasthan project. The company said associated benefits are expected in coming quarters, but it did not quantify the Rajasthan expenditure, expected benefit or timing of the project’s contribution in the release.

The Q2 FY2027 figures showed pressure at both operating and net-profit levels. EBITDA margin declined by two percentage points to 27% from 29%, while PAT margin declined by three percentage points to 9% from 12%, despite revenue reaching Rs 271 crore.

For the six months ended September 30, 2026, PAT was Rs 41.1 crore, compared with Rs 44.5 crore in H1 FY2026. The decline of Rs 3.4 crore occurred even as H1 revenue rose 27% to Rs 506.5 crore, consistent with Krsnaa's statement that upfront Rajasthan-project expenditure affected first-half profitability.

How did Krsnaa perform in the first half of FY2027?

Krsnaa recorded H1 FY2027 revenue from operations of Rs 506.5 crore, up from Rs 399 crore in H1 FY2026. The company attributed the increase to newly operationalised projects, continued growth in existing operations and expansion of its retail business.

H1 EBITDA increased to Rs 130.7 crore from Rs 112.6 crore in the corresponding prior-year period. However, EBITDA margin declined to 26% from 28%, extending the margin movement reported in Q2 FY2027 into the six-month comparison.

H1 FY2027 PAT margin was 8%, below both the 11% reported in H1 FY2026 and the 9% recorded in Q2 FY2027. The H1 EBITDA margin of 26% was also one percentage point below the Q2 margin of 27%, showing that the first-half margin effect was more pronounced than in the second quarter alone.

How fast is Krsnaa's retail diagnostics business growing?

Krsnaa’s retail revenue grew 35% year on year to Rs 23.5 crore in Q2 FY2027. Retail contributed approximately 9% of quarterly revenue of Rs 271 crore, making it a disclosed growth component alongside the company’s project-based operations.

Retail patient volumes increased 45% year on year and test volumes rose 48% in Q2 FY2027. Test-volume growth exceeded patient-volume growth by three percentage points, while the release did not disclose the absolute number of patients or tests handled during the quarter.

Krsnaa said its retail network uses an asset-light structure of franchisees, business associates, referral centres and strategic alliances. Managing Director Yash Mutha said the company is focused on accelerating cash business and building retail diagnostics as a complementary growth engine, alongside opportunities in existing and untapped geographies.

What is Krsnaa doing across projects and radiology?

Krsnaa said it remains focused on stabilising and improving utilisation across its public-private partnership, or PPP, projects, including Rajasthan. The November 2, 2026 release did not provide project-level revenue, utilisation rates, Rajasthan location numbers or a separate profitability measure for the PPP portfolio.

Krsnaa’s radiology operations are supported by more than 350 radiologists and teleradiology capabilities across X-ray, computed tomography, or CT, and magnetic resonance imaging, or MRI. Group Chief Executive Officer Mitesh Dave said the company continued to strengthen its radiology and pathology capabilities in an integrated manner as newer projects mature.

Krsnaa reported 57 National Accreditation Board for Testing and Calibration Laboratories, or NABL, accredited pathology laboratories and 75 National Accreditation Board for Hospitals and Healthcare Providers, or NABH, accredited radiology centres. The company operates across 19 states and Union Territories through more than 8,400 touchpoints nationwide.

Conclusion

Krsnaa combined record Q2 FY2027 revenue of Rs 271 crore with lower profitability ratios, as revenue rose 32% but PAT margin fell to 9% from 12%. Retail revenue increased 35% to Rs 23.5 crore, while H1 FY2027 PAT declined to Rs 41.1 crore from Rs 44.5 crore despite 27% revenue growth.

The next reported results will show whether benefits from the Rajasthan project begin to offset the upfront expenditure cited for H1 FY2027. Management has also said it plans to improve PPP utilisation, accelerate cash business, expand specialised diagnostic offerings and explore technology-led opportunities as newer projects mature.