Summary
Thyrocare Technologies Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 28, 2026, 6:00 PM IST
Event Participants
Executives 6 Alok Jagnani (Board Member), Preet Joshi (Strategy & IR), Rahul Guha (MD & CEO), Rajdeep Panwar (Chief Commercial Officer), Dr. Ramesh Kinha (Chief Operating Officer), Vikram Gupta (CFO)
Analysts 11 Abdulkader Puranwala, Arman, Bino Pathiparampil, Dheeresh, Gaatha Jain, Harsh Katariya, Krishna Raj K, Lokesh Manik, Naman Bagrecha, Parikshit Kabra, Prakash Kapadia, Raman KV, Surya Narayan Patra, Varij Bangur, Yash Doshi
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹196 crores | +18% YoY; Driven by 20% growth in pathology, offset by slower radiology performance. |
| Standalone Revenue | ₹183 crores | +20% YoY; Supported by core franchisee and high-growth partnership segments. |
| Normalized EBITDA (Consol) | ₹62.7 crores | +26% YoY; Normalized margin at 32% (reported 29.5%). Includes ESOP non-cash charges. |
| Reported PAT | ₹32.1 crores | +47% YoY; Growth supported by operational leverage and deferred tax asset creation. |
| Total Tests Processed | 49.6 million | +22% YoY; Reflects deeper penetration into Tier 3 markets and menu expansion. |
| Total Patients Served | 4.5 million | +14% YoY; Growth despite low seasonality and festival impact in Q3. |
| Franchisee Base (Active) | 10,300 count | +12% YoY; Highest ever active base; added 200 franchisees in a seasonally slow quarter. |
| Revenue Per Test (Ex-Polo/Vimta) | ₹36 | -2% YoY; Dilution due to heavy discounting on sugar tests to drive camp volumes. |
| Cash and Bank Balance | Not Disclosed | Managed stated that franchisee business remains 100% “cash and carry” (prepaid). |
Geographic & Segment Commentary
- Franchisee Business: Contributed mid-teens growth (12% in Q3) as the core pillar. Expansion focused on Tier 3 cities and beyond, supported by a “pay-for-performance” model and the addition of high-transacting stores.
- Partnerships (Health-Tech & API): Grew 39% YoY, with the PharmEasy partnership growing 30%. Management attributes this to riding the tailwinds of health-tech players focusing on diagnostics over pure medicine delivery.
- Specialized & Insurance Segments: Pre-policy medical checkups grew 70% YoY following the Think Health acquisition. The segment benefits from rising insurance penetration and mandatory annual health checks.
- International (Tanzania): Revenue grew 140% YoY, though on a small base (approx. ₹3 crores annual run rate). Business currently serves 250 clients and is expected to break even in 12-18 months.
Company-Specific & Strategic Commentary
- Quality Benchmarking: Achieved “Six Sigma” quality with complaints reduced to 3.2 per million tests (-43% YoY). The company remains the only 100% NABL-accredited national lab chain in India.
- Brand Expansion: Onboarded Madhuri Dixit as brand ambassador to transition the brand’s perception from a pure B2B player to an “evergreen” symbol of quality and trust for partners.
- Menu Innovation: Launched a 100+ SKU menu for allergy testing on the Phadia platform and integrated it into the flagship “Aarogyam” packages to address rising air quality concerns.
- Operational Efficiency: Maintained an average report turnaround time (TAT) of 3.28 hours from sample receipt, aided by 39 domestic labs and a dedicated fleet of 2,000 phlebotomists.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Long-term Revenue Growth | 15% - 16% CAGR | Target to grow 1.5x market rate (10%); Franchisee (12-15%) and Partnerships (20%+). |
| EBITDA Margins | 30% - 32% Range | Management plans to reinvest operating leverage into field force expansion and specialty testing. |
| Tanzania Breakeven | FY 2027 | Expected operating breakeven within 12-18 months as the network matures. |
| Specialty Field Force | 80+ Personnel | Doubling the field team to drive doctor-prescribed specialty tests in FY27. |
Risks & Constraints
| Risk | Context |
|---|---|
| Credit Risk (Vimta) | Planned underperformance in the Vimta segment due to tightening credit from 60+ days to stricter norms to align with Thyrocare’s prepaid model. |
| Margin Pressure | Reinvestment in specialty segments (Genomics/Allergies) and field force costs may cap EBITDA margin expansion despite revenue growth. |
| Competitive Intensity | Entry of large corporate houses into the Genomics space may lead to pricing disruption, though management views this as awareness building. |
| Accounting Volatility | Ind AS 116 capitalization of reagent rental machines (₹20 crores in 9M) shifts costs from COGS to Depreciation, impacting gross margin optics. |
Q&A Highlights
Partnership Business Growth
- Question: What sustains the 36%+ growth in partnerships and is it defensible? (Parikshit Kabra)
- Answer: Growth is driven by a dedicated 2,000-member phlebotomy fleet and seamless API integration for 400 cities. While competitors may attempt to enter, our cost leadership and service levels create significant stickiness (Rahul Guha).
Accounting Treatment (Ind AS 116)
- Question: Why did Gross Margins jump to 75% and Depreciation increase? (Bino Pathiparampil)
- Answer: Following Ind AS 116, machines taken on “reagent rental” are capitalized. This reduced COGS by ₹6 crores this quarter with a corresponding increase in Depreciation. It has no impact on PBT (Vikram Gupta).
Vimta Segment Degrowth
- Question: Why did the Vimta business underperform this quarter? (Raman KV)
- Answer: We tightened credit policies significantly. The current revenue level is the “new normal” from which growth will resume on a healthier cash-flow basis (Rahul Guha).
Specialty Testing (GLP-1)
- Question: Has the GLP-1 (obesity) trend translated into diagnostic volumes? (Krishna Raj K)
- Answer: Not yet. Patients are taking the medication but are not yet testing for liver/kidney impacts. We are investing in doctor education to build this awareness (Rahul Guha).
Key Takeaway
Thyrocare delivered a resilient Q3 FY26 with consolidated revenue growing 18% YoY to ₹196 crores, led by a robust 39% growth in the partnership segment and 20% in standalone pathology. The company reached a milestone by achieving Six Sigma quality levels (3.2 complaints per million) and expanding its active franchisee base to a record 10,300. Strategic investments in brand building (appointing Madhuri Dixit) and new specialized menus like Phadia-based allergy testing are diversifying the revenue mix beyond basic wellness. While Ind AS 116 accounting adjustments boosted gross margins to 75%, management remains focused on maintaining normalized EBITDA margins around 32% by reinvesting gains into a specialized field force. Looking ahead, Thyrocare targets a sustainable 15-16% organic growth rate, positioned as the primary B2B infrastructure provider for India’s rapidly expanding health-tech and insurance ecosystems.
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