Suraksha ends FY26 with 23% growth, while expansion costs reshape margins

Suraksha Diagnostic Limited closed FY26 with a strong top-line performance and a clear message from management: the company is scaling its network aggressively, and near-term margin softness is the price of building the next leg of growth.

On a consolidated basis, total revenue for FY26 rose to INR 313.58 crore, up 22.5% year-on-year. EBITDA increased 15.8% to INR 98.56 crore, while PAT was largely flat at INR 31.40 crore, up 1.4%. The difference between revenue growth and profit growth is explained by higher depreciation and finance costs from an expanding asset base and rising pre-operative expenses for new centres.

Q4 FY26 also reflected the same pattern. Total revenue grew 24.7% year-on-year to INR 82.20 crore, and EBITDA grew 25.7% to INR 25.16 crore. But PAT declined 14.1% to INR 6.16 crore, with management pointing to higher depreciation, finance costs and higher tax expenses.

The operating model is working, but new centres are still catching up

Suraksha’s network and throughput scaled meaningfully in FY26. As of 31 March 2026, the company operated 8 labs, 68 diagnostic centres and 193 collection centres, taking total touchpoints to 265. It served 1.37 million patients and performed 8.16 million tests during the year. Revenue per patient stood at INR 2,264 and tests per patient at 5.95.

The company’s key operating insight is the margin gap between mature and new centres. Management repeatedly highlighted that centres older than two years continue to deliver stable EBITDA margins of 36% to 37%. The investor presentation provides a quarterly bridge of this gap. In Q4 FY26, mature centres delivered an EBITDA margin of 36.5% and average revenue per centre of INR 16.32 million. New centres under two years generated a lower average revenue per centre of INR 4.91 million and posted a negative EBITDA margin of -5.5%.

The same slide also shows improving economics for the newer centres. From Q1 FY26 to Q4 FY26, the EBITDA margin of centres under two years improved from -19.6% to -5.5%, suggesting the ramp-up curve is playing out, even if consolidated margins still reflect the drag.

Financial summary

Revenue mix remains balanced across pathology and radiology

Suraksha’s FY26 revenue mix reflects a broadly balanced integrated diagnostics model. Pathology accounted for 48.85% of revenue from operations and radiology contributed 44.26%. Doctor consultancy and others contributed 6.89%.

This mix matters because the company positions itself as a one-stop platform that combines diagnostics with consultation services. The investor presentation also highlights polyclinic chambers and doctor consultations as value-added services that can improve customer stickiness and support diagnostic volumes.

The management also addressed questions around radiology versus pathology growth, stating that the industry mix is roughly 55% pathology and 45% radiology and that the company aims to mirror the prescription-driven mix rather than skew sharply toward one modality.

Strategic initiatives: acquisitions, genomics, and advanced imaging

Suraksha used FY26 and the period immediately before it to broaden clinical capabilities beyond routine diagnostics.

One initiative is the strategic investment in Fetomat Wellness Private Limited. The investor presentation states that Suraksha’s board approved the proposal in March 2025, and on completion of the deal on 09 April 2025, Suraksha held a 63% stake. Fetomat is described as a network focused on pregnancy care, women’s ultrasound scans, prenatal diagnostics and genetic counselling, with FY26 turnover of INR 5.42 crore and EBITDA of INR 0.62 crore.

A second initiative is Suraksha Genomics. The company announced the launch of this vertical in July 2025 for advanced genetic and molecular testing. The concall provided early commercial signals: management cited about INR 1 crore of incremental genomics business in Q4, and also discussed a monthly run rate of about INR 35 lakh.

The third initiative highlighted both in the presentation and on the concall is the integration of a next-generation 1.5 Tesla helium-free MRI technology at Calcutta Medical College. Management described the expected benefits as faster throughput, reduced maintenance, lower downtime and alignment with sustainability goals through reduced helium dependency.

FY27 priorities: expansion into new states and a focus on utilisation

The company’s FY27 expansion plan is explicit in the investor presentation. It plans a hub in Bihar, a hub in Jharkhand, a hub in Tripura, and in West Bengal it plans three hubs and eight spokes.

On the concall, management discussed a capex plan of around INR 70 crore for the rollout, noting that some capex related to centres delayed from the previous year had already been incurred.

Operationally, management’s stated focus for FY27 rests on improving throughput and capacity utilisation of recently launched centres, driving cost efficiencies through centralised procurement and sweating existing automated infrastructure, scaling specialised capabilities in genomics and advanced imaging, and enhancing patient experience through technology.

Guidance was also discussed. Management stated that FY27 revenue growth expectation remains around 15%. On profitability, management commentary suggested FY27 EBITDA margin could stabilise around 33% due to new centre additions, with a mid-term view of around 35% as operating leverage improves and a longer-term aspiration of 38% to 39%, while mature centres remain around 36% to 37%.

Takeaways

Suraksha’s FY26 performance shows a company that is scaling quickly in an East India focused footprint while trying to preserve the economics of its mature network. Revenue grew strongly, and operating cash flow remained positive even with elevated capex. But margin compression and lower Q4 PAT underline that the company is in an investment phase, where depreciation, finance costs, and pre-operative expenses will influence near-term profitability.

The most important operating variable to watch is the ramp-up of new centres. The company’s own centre-age margin bridge shows that losses in new centres are narrowing quarter by quarter. If this trend continues while expansion remains disciplined, the gap between mature centre margins and blended margins could close over time, which is central to management’s medium-term margin commentary.