Summary
Suraksha Diagnostic Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026, 2:30 PM IST
Event Participants
Executives 5 Dr. Somnath Chatterjee (Chairman and JMD), Mr. Balgopal Jhunjhunwala (Regional Business Head), Mr. Niren Kaul (Chief Sales Officer), Mr. Ravindra K. S. (Group CFO), Ms. Ritu Mittal (JMD and CEO)
Analysts 8 Abhijeet (PI Asset), Akash (Investec), Dhruv Maheshwari (Perpetuality Ventures LLP), Hitaindra Pradhan (Maximal Capital), Isha Murthy (MAS Cap Invest), Keshav (Yashwi Securities), Nancy Yadav (Allegro Capital), Prateek Shah (Investing Alpha), Sanya Taparia (SAS Capital), Siddhant (Tusk Investment)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹78.31 crores | +30.3% YoY; Driven by volume expansion from new centers and high-value genomic product mix. |
| EBITDA | ₹23.78 crores | +26.1% YoY; Margin at 30.6% vs 31.6% YoY due to pre-operative costs of new facilities. |
| Profit After Tax (PAT) | ₹7.24 crores | +21% YoY; PAT margin at 9.3% vs 10.1% YoY, impacted by higher initial operating costs. |
| No. of Patients | 0.36 million | +23% YoY; Strong volume growth despite Q3 being a seasonally weaker quarter for healthcare. |
| No. of Tests | 2.06 million | +30.7% YoY; Reflects deeper penetration and adoption of specialized testing. |
| Revenue per Patient | ₹2,140 (9M) | +2.7% YoY from ₹2,084; Improved by adoption of mid-to-high value genomic tests. |
| Mature Center Margin | ~33-34% | Established centers (42 count) maintain high efficiency; 24 new centers causing temporary drag. |
| Net Cash Position | ₹29 crores | Management noted negligible gross debt of ₹1-1.5 crores with a strong net cash balance. |
Geographic & Segment Commentary
- Pathology & Radiology: The business remains balanced with pathology contributing 48% and radiology 46% of revenue. Management continues to use a hub-and-spoke model where one large center (hub) supports 5-6 smaller spokes.
- Genomics (Suraksha Sutra): This segment is the primary strategic moat, currently generating ₹2.1-2.2 million monthly revenue. It is the only complete genomic lab in Eastern India, focusing on reproductive, pediatric, neurology, and oncology verticals.
- Regional Expansion: Growth is focused on West Bengal, Bihar, Jharkhand, and the Northeast. Management plans to enter these markets via media-led launches and engagement with Key Opinion Leaders (KOLs) rather than deep discounting.
Company-Specific & Strategic Commentary
- Network Expansion: Commissioned 12 centers in 9M FY26, with 6 more currently in execution for Q4. The company targets a total network of 100 centers by FY28, adding 12-15 centers annually.
- Technological Leadership: Introduced AI applications for CT and MRI reporting to improve TAT. Partnered with international experts for digital pathology and is developing the first HRD assay for ovarian cancer in the region.
- B2C Focus: The business model is heavily skewed towards B2C (92-93%), providing higher pricing power and brand loyalty compared to the B2B segment (7-8%).
- In-house Synergies: The acquisition of Fetomat (fetal medicine) has successfully provided a foothold in genomics, transitioning specialized fetal procedures into in-house genomic testing.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | >15% (FY26) | Management expects to exceed the initial 15% revenue growth commitment for the full year. |
| EBITDA Margin | ~32% (FY26) | Revised slightly downward from 33-34% due to aggressive center expansion and pre-operative costs. |
| Margin Recovery | Q3 FY27 | Margins expected to revert to higher levels as 24 new centers mature and economies of scale kick in. |
| Annual Centers | 12-15 Centers | Maintenance of the current expansion pace with a recurring annual capex of ₹70 crores. |
| Genomics Revenue | ₹4+ crores (FY27) | Expected run rate for the next financial year as clinical adoption and preventive genomics scale. |
Risks & Constraints
| Risk | Context |
|---|---|
| Margin Compression | Aggressive expansion in new micromarkets leads to initial EBITDA losses (₹2 crores in 9M) and higher fixed costs until centers mature. |
| Input Cost Volatility | Non-pathology inventory (films) saw price pressure due to silver price spikes, though management noted recent stabilization. |
| Seasonality | Q3 historically remains the weakest quarter for the diagnostic industry, impacting sequential comparisons. |
| Competition | While dominant in East India, national players like Dr. Lal and Metropolis are scaling genomic offerings, though Suraksha relies on local TAT advantages. |
Q&A Highlights
Genomics & Competitive Moat
- Question: How does Suraksha differentiate from national players like Dr. Lal/Metropolis in genomics? (Akash, Investec)
- Answer: Diagnostics is a regional business; Suraksha offers the lowest Turnaround Time (TAT) for Eastern India as the only complete local lab. The team includes global authorities like Dr. Geetashree and Dr. Asima Mukhopadhyay, ensuring high-end clinical validation (Dr. Somnath Chatterjee).
Expansion & Margins
- Question: Will we see a slowdown in margins due to new center ramp-ups? (Akash, Investec)
- Answer: Scale is the current priority. While margins may end around 32% for FY26 due to pre-operative costs, they will automatically expand by Q3 FY27 through economies of scale (Ritu Mittal).
PPP Strategy
- Question: What is the strategy for Public-Private Partnership (PPP) centers? (Siddhant, Tusk Investment)
- Answer: We do not actively chase PPPs as they are low-margin and have receivable issues. We prioritize standard retail centers, though we occasionally take PPP projects if strategically necessary (Ritu Mittal).
Pricing Power
- Question: Are you planning a general price hike to improve margins? (Keshav, Yashwi Securities)
- Answer: There is no plan for a table-wide price hike. Growth in Revenue per Patient will be driven by introducing high-priced specialized tests rather than raising prices on routine tests (Niren Kaul).
Key Takeaway
Suraksha Diagnostic delivered a strong Q3 FY26 with 30.3% revenue growth, reaching ₹78.31 crores, underpinned by a 23% increase in patient volumes. While aggressive network expansion (12 centers added in 9M) caused a temporary EBITDA margin compression to 30.6% due to ₹2 crores in initial operating losses, the core 42 mature centers maintain healthy mid-30s margins. Strategically, the company is pivoting toward high-value genomics (Suraksha Sutra) and digital pathology to combat commoditization, with genomics already contributing ₹2.1 million monthly. Management remains committed to a scale-first approach, targeting 100 centers by FY28 and a ₹70 crore annual capex. Despite seasonal weakness in Q3 and initial cost drags, the company expects margin recovery by late FY27 as new facilities mature and AI-driven efficiencies in radiology take effect.
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