KRSNAA

Charts Dual Growth Path with PPP and Retail Expansion

, a leading PPP diagnostics player, delivered strong Q2FY26 results with margin expansion despite stretched receivables and retail build-out costs. The company is executing a dual-lever strategy—strengthening its PPP contracts while aggressively scaling its B2C retail footprint—to diversify revenue and sustain long-term growth. The Rajasthan project is progressing well, with 35 labs and 500 collection centres expected by December, and the balance 152 labs and 1,100 centres by Q4FY26. This project could add ₹300–350 crore annually, with meaningful impact from FY27. Maharashtra’s 73 radiology centres are also underway, with 25 MRI sites nearing completion. Revenue grew 11% YoY despite expiry of certain PPP contracts. EBITDA rose 18% with margins at 29%, while PAT increased 22% (12% margin). Margin expansion of ~190 bps was driven by higher radiology utilisation, manpower optimisation, faster supply-chain turnaround, automation, and retail traction. Retail revenue surged 11x YoY to ₹174 million in Q2, now contributing ~8% of H1FY26 revenue versus ~1% last year. The company added 2,800 touchpoints in Maharashtra, Punjab, Assam, and Odisha through an asset-light, partnership-led model. Retail is expected to reach 15–20% of FY27 revenue, with long-term ambition of 40–50%. Transition to the SNA–SPARSH platform extended receivables to ~150 days in Q2. Management aims to reduce this to ~100 days, a key monitorable for investors given the working capital intensity of PPP contracts. Krsnaa is balancing PPP leadership with retail expansion. Retail EBITDA remains negative due to upfront costs but is expected to break even by FY26-end. Management guides for high-teen revenue growth, steady ~29% EBITDA margins, and RoCE improvement to 15%, supported by shared PPP-retail infrastructure and cost leadership.