Synopsis:- Posting a headline PAT jump of 31 percent for FY26 and 102 percent growth in Q4 net profit, Krsnaa Diagnostics has delivered numbers that look sharply better year-on-year but a Rs. 22.18 crore fair value gain on an investment in Apulki Healthcare accounts for nearly all of the Q4 PAT uplift, leaving underlying operational profit growth almost flat; the structural story, meanwhile, rests on a Rs. 430 crore ADB-funded capex push aimed at building out 200-plus CT/MRI centres.
A listed diagnostics company came into focus after publishing its investor presentation for the quarter and year ended March 31, 2026. The headline numbers a Q4 PAT doubling and full-year profit growth of 31 percent draw the eye, but a Rs. 221.75 million (Rs. 22.18 crore) fair value gain on the company’s investment in Apulki Healthcare Private Limited, booked in Q4, meaningfully inflates the reported earnings. Stripping that out tells a materially different story.
With a market capitalisation of Rs. 1,836.52 crore, the shares of Krsnaa Diagnostics Limited were last recorded at Rs. 566.15 per share, up 2.22 percent from its previous close of Rs. 553.85. It is trading at a P/E of 17.7.
On a consolidated basis, Krsnaa Diagnostics reported revenue from operations of Rs. 772.80 crore for FY26, up 7.8 percent from Rs. 717.20 crore in FY25. EBITDA (excluding CSR and ESOP charges) rose 9.8 percent to Rs. 214.90 crore, with EBITDA margin expanding 69 basis points to 28 percent, a genuine improvement driven by operating leverage and employee cost rationalisation. Reported PAT came in at Rs. 101.30 crore, up 30.5 percent from Rs. 77.60 crore in FY25. FY26 EPS stood at Rs. 30.9, against Rs. 23.6 a year earlier.
The caveat is significant. The full-year PAT includes the Rs. 22.18 crore Apulki fair value gain booked in Q4. Adjusting for this, underlying PAT for FY26 was approximately Rs. 79 crore up roughly 2 percent from Rs. 77.60 crore in FY25. Revenue grew 8 percent; operating margins improved modestly; but operational profit growth was near-flat. That is not a poor performance for a company mid-cycle through a large expansion, but it is quite different from the 31 percent headline figure.
In Q4 specifically, revenue grew 3.5 percent to Rs. 192.60 crore while EBITDA before CSR and ESOP rose to Rs. 55.90 crore from Rs. 54.50 crore modest operational progress. Reported Q4 PAT of Rs. 41.70 crore more than doubled year-on-year from Rs. 20.70 crore. Remove the Rs. 22.18 crore non-cash investment gain and Q4 underlying PAT was approximately Rs. 19.52 crore slightly below the prior-year Q4 number.
Network Expansion and the Rajasthan Pipeline
The company operationalised 51 centres and 1,167 collection centres during FY26, taking its network to 190 CT/MRI centres, 147 pathology labs, and over 4,700 patient collection centres across 18 states. The Rajasthan pathology project, when fully built out, will add 7 reference labs, 41 mother labs, 249 satellite labs, and over 5,000 collection centres to the network.
The retail segment, still early-stage, grew sharply in Q4 retail revenue reached Rs. 15.80 crore in Q4 FY26 against Rs. 6.40 crore in Q4 FY25 though at 8 percent of Q4 revenue, it remains a small contributor. Revenue per retail patient rose to Rs. 1,503 from Rs. 711 a year ago, driven by a higher test mix, and Q4 patient volumes touched 0.15 million.
ADB Funding and Capex Build-Up
The more consequential development for the medium-term investment case is the balance sheet shift. In February 2026, Krsnaa allotted Rs. 430 crore in NCDs to the Asian Development Bank at a 7.79 percent coupon for a seven-year tenor long-duration, concessional-rate debt that funds the network expansion without near-term refinancing pressure. Non-current borrowings on the consolidated balance sheet rose from Rs. 18.50 crore as at March 2025 to Rs. 437.10 crore as at March 2026.
Capital work-in-progress also surged from Rs. 2.96 crore to Rs. 208.07 crore confirming that the ADB proceeds are being deployed into physical infrastructure rather than sitting idle. Cash and bank balances together stood at approximately Rs. 360 crore as at March 31, 2026, against roughly Rs. 68 crore a year ago, suggesting a portion of the NCD proceeds remains undeployed pending project execution. Finance costs for FY26 rose to Rs. 34.40 crore from Rs. 24.70 crore in FY25, and will rise further as the capex cycle matures and the full cost of the ADB borrowing flows through.
Business Overview
Krsnaa Diagnostics Limited is a public-private partnership-focused integrated diagnostic service provider offering radiology, pathology, and tele-radiology services across India. The company operates primarily through government hospital partnerships, serving patients at significantly below-market pricing in some tests, 70 to 90 percent below private-sector rates.
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The post Krsnaa Diagnostics Q4 Profit Increases 101% YoY to ₹41.70 Cr; One-Time Fair Value Gain Masks Flat Core Earnings appeared first on Trade Brains.