### **Overview** Krsnaa Diagnostics Ltd is one of India’s largest and fastest-growing **integrated diagnostic service providers**, offering advanced **radiology, pathology, and teleradiology services** through a scalable, **asset-light Public-Private Partnership (PPP) model**. Founded in 2011 with two radiology centers, the company has expanded to a pan-India network of **over 2,800 touchpoints** across 18+ states and union territories, positioning itself as a **market leader in the diagnostics PPP space**. As of **November 2025**, Krsnaa is experiencing strong momentum across both its **PPP and retail (RPL brand)** segments, driven by operational efficiencies, disruptive pricing, government collaboration, and aggressive expansion in Tier 2 and Tier 3 markets. --- ### **Core Business Model & Strategy** - **Public-Private Partnership (PPP) Focus:** Operates under long-term (5–10+ years) PPP contracts with state governments, where it installs and manages diagnostic infrastructure in government hospitals. This model provides **high revenue visibility**, **low capex intensity**, and **stable margins**, with 80% of current revenue derived from PPP projects. - **Asset-Light Expansion:** Utilizes an innovative **pay-per-scan / deferred payment model** with major OEMs (e.g., United Imaging, GE, Siemens), allowing deployment of high-end equipment with only 10% upfront cost. This improves cash flow and enables capital-efficient scaling. - **Dual Revenue Streams:** Balances **B2G (PPP)** with a high-growth **B2C retail business** under the **RPL brand**, currently contributing ~8% of total revenue but projected to reach **15–20% by FY27**. --- ### **Financial & Operational Performance (Nov 2025)** - **EBITDA Growth:** Reported **₹602 million EBITDA in Q2 FY26**, up **18% YoY**, with margins expanding to **29%**, reflecting improved productivity and operational efficiency. - **Revenue Growth:** Delivered **11% YoY revenue growth** despite some PPP contract transitions, underscoring model resilience. The company expects **"higher teens" (15–19%) growth** over the next 1–2 years. - **Capital Efficiency & Expansion:** Plans to launch **25 labs and 500+ collection centers by December 2025**, with the balance (152 labs, 1,100+ centers) to be operational by **end of Q4 FY26**. These will be funded through a **disciplined capital structure**, combining internal accruals and targeted debt. - **Cash Flow Management:** Actively optimizing collections and working capital to support reinvestment, particularly in high-impact projects like **Rajasthan PPP**. --- ### **Market Differentiation & Scalability** #### **1. Disruptive Affordable Pricing** - **CT Brain Scan:** ₹880 (vs. ₹3,500–₹4,500 elsewhere) → **75–80% cheaper** - **Vitamin B12 Test:** ₹69 (vs. ₹1,000–₹1,300) → **~95% lower** - Radiology and pathology pricing is **30–95% below market**, enabling mass access while sustaining **industry-leading EBITDA margins (27–29%)**. #### **2. Pan-India Scale & Uniqueness** - **Only company with pan-India presence in both radiology and pathology** under PPP. - Operates **186+ CT/MRI centers**, **120+ NABL-accredited pathology labs**, **36 NABH-accredited radiology**, and **India’s first NABH-accredited teleradiology hub (Pune)**. - **Largest doctor network:** 350+ radiologists, 120+ pathologists – the most among Indian diagnostics firms. #### **3. Quality Accreditations & Tech Leadership** - **First in India** to achieve: - **CAP accreditation** for a **government hospital-based pathology lab**. - **ACR (American College of Radiology) accreditation** for a **tele-radiology hub** (only non-US facility). - Uses **AI-enabled diagnostics, automated workflows, and cloud-PACS technology** for faster, more accurate reporting. #### **4. Strategic Partnerships** - **Apulki Healthcare:** Acquired 23.53% stake; **30-year exclusive partnership** to provide integrated diagnostics in oncology and cardiac care hospitals. Secures long-term revenue and entry into super-specialty markets. - **United Imaging & Medikabazaar:** ₹300+ crore partnership to deploy **30+ advanced imaging centers** with deferred financing, improving access in Tier 2/3 cities. --- ### **Retail & B2C Expansion (RPL Brand)** - **Retail Revenues Surge:** - **60% QoQ revenue jump** in Q2 FY26 for RPL. - Retail now contributes **~8% of total revenue**, up from 3.5% in earlier periods, targeting **15–20% by FY27**. - **Rapid Footprint Growth:** Increased **touchpoints from ~1,600 in FY24 to over 2,800 in FY25** across Maharashtra, Punjab, Odisha, and Assam. - **Growth Drivers:** - Asset-light **COCO/FOCO models** and **franchisee network**. - **Home collection services** expanding in urban and rural areas. - **Preventive wellness packages** (e.g., Ayaksham), digital app, CRM integration, and brand-building campaigns. - Strategic **B2B tie-ups** with hospitals, corporates, and insurers. Krsnaa aims to reach **10,000 retail touchpoints by FY27**, shifting towards a **70% B2C / 30% B2B revenue mix** in the medium term. --- ### **Key Projects & Growth Catalysts** | **Project** | **Impact** | |-----------|----------| | **Rajasthan PPP (Pathology)** | India’s largest state-level diagnostic project: **42 Mother Labs, 135 Hub Labs, 1,335+ Collection Centers**. Expected to contribute **meaningfully from Q4 FY26**, with **full impact in FY27**. | | **Rajasthan & Maharashtra Radiology Projects** | Expansion of **CT/MRI footprint** in high-demand urban and semi-urban areas. | | **Jharkhand, Assam, Odisha Projects** | Successful execution of recent PPP wins (labs, centers) enhancing penetration in Eastern and Central India. | --- ### **Technology & Innovation** - **AI & Digital Platforms:** - AI-powered reporting and predictive analytics. - Fully automated patient journey: **online booking, digital reports, teleconsultations** via mobile app. - **Home Sample Collection:** Scaling nationally with trained phlebotomists; integrated into corporate wellness and preventive care. - **Genomics & Specialized Testing:** Investments in **molecular diagnostics, genomics (via Genexus NGS platform)**, and precision medicine to tap high-margin, high-growth specialties.