Krsnaa Diagnostics is a diagnostic platform purpose-built for “Bharat” - rural and semi-urban India - that works with governments to put high-quality radiology and pathology inside public hospitals at prices up to 70% below market rates. It was incorporated in 2011 with just two radiology centres, but a pivotal shift came in 2013 when it began operating 12 centres in Himachal Pradesh under a public-private partnership (PPP) model, setting the template for everything that followed. The recurring approach is to build integrated, capital-intensive diagnostic infrastructure upfront inside government facilities - where patient flow is captive and acquisition cost is near zero - and then let utilization and monetization follow over time, creating a moat that is extremely difficult to replicate operationally, financially, or structurally. # Business segments A single diagnostic engine, built on public-private partnerships, that delivers radiology and pathology through the same government-hospital infrastructure - with a tele-radiology hub as its central nervous system and a young retail brand riding on the same assets. ## 1. PPP diagnostics: the government-hospital engine that carries everything **Krsnaa wins long-term contracts to set up and run radiology and pathology services inside government hospitals, earning a captive patient base from day one with virtually no marketing spend and disruptive pricing that competitors cannot match.** - **The government provides the space, Krsnaa brings the kit** - public health agencies give rent-free space and subsidized utilities inside district and sub-district hospitals, while Krsnaa invests in equipping the facilities with CT, MRI and pathology gear procured at a discount from leading OEMs because of its large order volumes. - **Captive customers, zero acquisition cost** - the majority of patients are already coming to government OPDs and IPDs, so Krsnaa pays no doctor referral fees and runs limited marketing; additional walk-ins are drawn by the quality infrastructure and prices that are 45-60% lower for radiology tests and 40-80% lower for pathology tests than prevailing market rates. - **Contracts built to last and escalate** - radiology agreements run for 10+ years and pathology for 5-10 years, often with extension clauses, and all carry inbuilt price escalation mechanisms so revenue per test can rise over time. - **A maturity curve that rewards patience** - a CT centre typically starts at 10% utilization, reaches 60-70% within about three years, and pays back its investment in 3-3.5 years; pathology centres, with their low equipment cost, can pay back in a couple of months. - **The bid-win engine is formidable** - with a 78% bid-win ratio, Krsnaa is the largest PPP partner in Indian diagnostics, and its existing order book gives it revenue visibility of nearly INR 6,000-7,000 crores over the next 5 to 7 years. ## 2. Radiology services: the capital-intensive imaging backbone **CT, MRI, X-ray and ultrasound scans performed inside government hospitals - and increasingly for retail customers - on a fleet of 190 CT and MRI centres that makes Krsnaa one of Asia’s largest radiology platforms.** - **Heavy metal, high throughput** - the equipment fleet includes 109 CT machines and 39 MRI machines as of FY24, performing roughly 1.5 lakh CT and MRI scans and 5 lakh X-rays every month, with machines running 24x7, 365 days a year. - **Equipment bought smart, not just bought** - large procurement volumes mean the company buys diagnostic machines at lower cost and secures Comprehensive Maintenance Contracts at a discount; a strategic collaboration with United Imaging and Medikabazaar in 2024 unlocked over ₹300 crore of facilitated investment to deploy more than 30 new imaging centres on a capital-efficient financing model. - **Utilization is the profit lever** - a new CT centre might start at 10% capacity but matures to 60-70% within three years, and some centres reach 80%, which is when the high fixed-cost base turns into an advantage because every additional scan drops almost straight to the bottom line. - **Common infrastructure feeds two businesses** - the same CT and MRI machines that serve PPP patients also serve the retail brand’s walk-in customers, so retail volumes generate marginal revenue with minimal incremental fixed cost. ## 3. Pathology services: the high-volume, quick-payback testing network **A hub-and-spoke laboratory system that processed nearly 59 million tests in FY26, spanning everything from routine blood sugar at ₹20 to advanced molecular diagnostics, with labs that pay back their investment in months.** - **Hubs process, spokes collect** - centralized reference labs (147 as of Q4 FY26) process samples fed by more than 4,700 patient collection centres across 18 states, using an in-house Laboratory Information Management System with AI synchronization and multi-level automation. - **Accreditation that competitors in government settings do not have** - Krsnaa holds India’s first CAP (College of American Pathologists) accreditation for a pathology laboratory in a government facility, alongside 54 NABL-accredited labs, which signals quality to both government partners and retail customers. - **Payback in a couple of months** - because pathology equipment is relatively inexpensive and available on rental models, new collection centres and labs become profitable far faster than radiology centres, making pathology the quick-scaling half of the business. - **State-sized contracts fill the funnel** - the Rajasthan project alone involves 27 mother labs and 800+ collection centres; Odisha covers 32 district hospitals and 321 block CHCs; Assam covers the entire state; and the BMC Mumbai project adds roughly 600 collection centres. ## 4. Retail diagnostics (RPL brand): the consumer layer on top of PPP infrastructure **A fast-growing B2C brand that sells the same radiology and pathology tests to walk-in and home-collection customers at prices 30-35% below competitors, using the PPP asset base as its cost foundation.** - **Built on sunk cost** - because the CT, MRI and pathology labs already exist for the PPP business, retail volumes ride on infrastructure whose fixed cost is already covered, which is how the retail business scaled from roughly INR 10 crores to INR 60 crores in a single year. - **Franchise-led, asset-light distribution** - the retail network has grown to more than 3,500 touchpoints, including 500+ franchises and collection centres across five states, using franchise models (COCO, FOCO, FOFO) rather than company-owned real estate. - **A catalogue that matches urban chains** - RPL offers over 3,200 tests spanning gynaecology, orthopaedics and oncology, with home collection backed by a mobile app for booking and real-time tracking, and preventive health packages for corporates and insurers. - **The doctor network is already 30,000 strong** - across five states, RPL has built a referral network of over 30,000 doctors, which is the traditional moat of diagnostic chains but built here on top of an infrastructure base that competitors had to construct from scratch. # Tele-radiology hub **A centralized, NABH- and ACR-accredited reporting centre in Pune where 350+ radiologists read scans transmitted from every corner of India, solving the radiologist shortage in tier-2 and tier-3 cities while keeping turnaround times to two to six hours.** - **India’s first on two counts** - it is the country’s first NABH-accredited tele-radiology reporting hub and the first ACR (American College of Radiology) accredited tele-radiology platform, operating 24x7, 365 days a year across 8,500+ sq. ft.. - **Capacity with headroom** - as of FY22, the hub could process 1,45,000 CT scans and 40,000 MRIs per month, with headroom of 2.4x for CT and 2.1x for MRI versus actual volumes, meaning it can absorb significant volume growth without proportional cost increases. - **Images travel, radiologists do not have to** - scans from remote government hospitals are transmitted digitally to Pune, processed for quality, assigned to a radiologist, reported, and sent back after a final quality check, all within an average of two to six hours. - **Centralized talent, efficient economics** - by pooling radiologists in one hub rather than placing them at every centre, Krsnaa can engage the most proficient doctors with an efficient payout structure, something a distributed model cannot match. # Group structure and partners **Krsnaa Diagnostics Ltd sits atop eight wholly owned subsidiaries - mostly state-level SPVs for Punjab and a retail subsidiary - plus a strategic 23.53% stake in Apulki Healthcare, which gives it a 30-year exclusive diagnostics franchise inside India’s first PPP cancer and cardiac hospitals.** - The listed parent operates the core PPP diagnostics business, while eight wholly owned subsidiaries include six Punjab-specific entities (Ludhiana, Amritsar, Bathinda, Jalandhar, Patiala, SAS Nagar), one Mohali entity, and Krsnaa Retail Private Limited - the vehicle for the RPL brand incorporated in FY24. - The Apulki Healthcare investment (INR 31.25 crore for a 23.53% stake) secures exclusive diagnostics rights for 30+ years across a planned network of 10+ oncology and cardiac hospitals, with the first two 125+ bedded hospitals coming up in Pune and Mumbai. - Equipment partnerships are central to capital efficiency: United Imaging and Medikabazaar facilitated over ₹300 crore of investment for 30+ new imaging centres under a deferred payment model, while GE Healthcare supplies advanced systems like the SIGNA Architect 3.0T MRI installed in the Delhi PPP project. - For the Rajasthan PPP project - the largest in the portfolio - Krsnaa operates in consortium with Telecommunications Consultants India Ltd (TCIL), a 100% Government of India undertaking that serves as lead bidder.