Pramodini Medicare profit falls despite 34% revenue gain

Pramodini Medicare Limited reported profit after tax of Rs 8.27 crore for the half year ended September 30, 2026, down from Rs 9.17 crore a year earlier, despite revenue from operations rising 34% to Rs 37.11 crore. Expenses increased faster than income, led by employee benefits, services rendered, depreciation and other expenses.

Why did Pramodini Medicare’s first-half profit decline?

Pramodini Medicare’s first-half profit declined because total expenses rose by Rs 10.86 crore to Rs 26.87 crore in the half year ended September 30, 2026, exceeding the Rs 9.37 crore increase in revenue from operations. Revenue rose from Rs 27.75 crore in the corresponding 2025 half year, while total income, including other income, increased to Rs 37.60 crore from Rs 28.26 crore.

Profit before tax fell to Rs 10.73 crore from Rs 12.25 crore as the expense increase outpaced income growth. Tax expense declined to Rs 2.46 crore from Rs 3.08 crore, including a deferred-tax credit of Rs 41.76 lakh in the latest half year, but that reduction did not fully offset the lower pre-tax profit. Profit after tax fell by Rs 90.35 lakh and earnings per share declined to Rs 4.60 from Rs 5.49.

Which costs increased most for Pramodini Medicare?

Pramodini Medicare’s largest disclosed cost increase was employee-benefit expense, which rose by Rs 3.76 crore to Rs 8.15 crore in the September 2026 half year. Cost of services rendered increased by Rs 3.32 crore to Rs 7.93 crore. Together, these two expense categories accounted for Rs 7.08 crore of the Rs 10.86 crore increase in total expenses.

Other expenses rose by Rs 1.71 crore to Rs 4.66 crore, while depreciation and amortisation increased by Rs 1.25 crore to Rs 4.95 crore. Finance costs rose to Rs 1.13 crore from Rs 42.69 lakh. Inventory movement was an expense of Rs 6.17 lakh, compared with income of Rs 6.40 lakh in the previous-year half, while other income declined to Rs 48.53 lakh from Rs 51.44 lakh.

The filing reports a single reportable segment, meaning Pramodini Medicare did not disclose revenue or profitability by diagnostic service, location or business line. Its full-year revenue from operations for the year ended March 31, 2026 was Rs 62.29 crore, compared with Rs 37.11 crore in the following first half. The results do not provide a quarterly split or a stated explanation for the increase in individual cost categories.

What changed in Pramodini Medicare’s balance sheet and cash flow?

Pramodini Medicare’s standalone balance-sheet total increased to Rs 152.78 crore at September 30, 2026 from Rs 93.48 crore at March 31, 2026. Cash and bank balances rose to Rs 40.38 crore from Rs 6.44 crore, trade receivables increased to Rs 23.86 crore from Rs 17.40 crore, and short-term loans and advances rose to Rs 22.31 crore from Rs 7.54 crore.

Borrowings also increased over the six months. Long-term borrowings rose to Rs 23.66 crore from Rs 13.76 crore, while short-term borrowings increased to Rs 5.94 crore from Rs 4.08 crore. Property, plant and equipment declined to Rs 42.84 crore from Rs 44.19 crore, although the cash-flow statement recorded net purchases of property, plant, equipment and intangible assets of Rs 4.17 crore during the half year.

Net cash used in operating activities was Rs 56.97 crore for the half year ended September 30, 2026, compared with net cash generated from operating activities of Rs 25.39 crore for the full year ended March 31, 2026. The operating outflow included Rs 34.12 crore in other bank balances, Rs 17.53 crore in other current liabilities and Rs 14.77 crore in short-term loans and advances. Financing activities generated Rs 65.17 crore, including Rs 49.19 crore in securities-premium proceeds and Rs 14.31 crore of long-term borrowing proceeds.

How is Pramodini Medicare deploying IPO proceeds and pursuing expansion?

Pramodini Medicare raised Rs 69.04 crore through its initial public offering on August 19, 2026 and listed on the NSE Emerge platform. As of September 30, 2026, Rs 36.03 crore remained unutilised. The company disclosed Rs 4.95 crore for offer-for-sale proceeds payable to existing shareholders after related expenses, Rs 8.07 crore for issue expenses and Rs 20.00 crore towards the objects of the issue.

The board said there was no deviation or variation in IPO-proceeds utilisation from the objects stated in the prospectus as of September 30, 2026. On November 13, 2026, it also approved a proposal to acquire up to 1,020 equity shares, representing 51% of Mahathi Imaging and Diagnostics Private Limited. The acquisition remains subject to due diligence and definitive agreements; on completion, Mahathi Imaging and Diagnostics Private Limited would become a subsidiary.

Pramodini Medicare also formed a four-member Employee Stock Option Plan committee on November 13, 2026. Independent director Eshwar Chandra Nandury was appointed chairman, with independent directors Ajay Kumar Attaluri and Manas Dash, and managing director Kuldeep Kumar Chalasani, as members. The filing does not disclose an option-pool size, grant schedule or other plan terms.

What did the limited review and consolidated results show?

Pramodini Medicare’s independent auditor, SSSS & Associates, said nothing had come to its attention that would indicate the unaudited standalone results were materially misstated or inadequately disclosed. The review was conducted under Standard on Review Engagement 2410, which the auditor stated provides less assurance than an audit. Accordingly, the auditor did not express an audit opinion.

Standalone and consolidated results were the same for the half year ended September 30, 2026, according to Pramodini Medicare’s notes. The company said its share of losses in Vista Pramodini Medicare Pvt Ltd had exceeded the investment’s carrying amount, which had been reduced to nil, so further losses were not recognised under Accounting Standard 23. It also said Khapra Diagnostics LLP, in which it is a 50% partner, had no operations during the period.

Conclusion

Pramodini Medicare increased first-half revenue to Rs 37.11 crore from Rs 27.75 crore, but higher employee, service, depreciation, finance and other costs reduced profit after tax to Rs 8.27 crore from Rs 9.17 crore. The contrast between revenue growth and lower earnings was also reflected in profit before tax, which declined by Rs 1.53 crore to Rs 10.73 crore.

The next disclosed matters to watch are deployment of the Rs 36.03 crore of unutilised IPO proceeds and progress on the proposed 51% acquisition of Mahathi Imaging and Diagnostics Private Limited, which remains conditional on due diligence and definitive agreements. Future results can also show whether receivables of Rs 23.86 crore, increased borrowings and the Rs 56.97 crore operating cash outflow change after September 2026.