Krsnaa Diagnostics delivers blockbuster 37% PAT growth in FY25—Big moves ahead in b2c and oncology

How Did Krsnaa Diagnostics Perform in FY25?

Krsnaa Diagnostics Limited, one of India’s fastest-growing diagnostic service providers in radiology and pathology, reported robust financial performance for the fiscal year ending March 31, 2025. The company posted a 37% year-on-year surge in consolidated profit after tax, reaching ₹776 million, supported by a 16% rise in total revenues to ₹7,172 million. This marks the company’s highest recorded annual profit since its public listing and reflects a strategic blend of volume growth, operational efficiency, and capital-light expansion.

The company’s EBITDA grew 34% year-on-year to ₹1,958 million, with margin improvement to 27% from 24% in FY24. Earnings per share (EPS) also increased sharply to ₹23.56, up 36% from the previous year. With these strong figures, Krsnaa Diagnostics’ Board has recommended a 55% dividend, affirming its commitment to shareholder returns alongside aggressive reinvestment in new business models.

What Were the Key Drivers of Growth in FY25?

Krsnaa Diagnostics attributed its strong financial results to increasing patient volumes, competitive pricing, and higher awareness of its diagnostic services, especially in underserved regions. The company’s longstanding public-private partnership (PPP) model, under which it delivers subsidized or free diagnostics in Tier 2 and Tier 3 cities, remains central to its growth. In FY25 alone, Krsnaa expanded its service footprint to over 4,000 centers across 15 states and 3 Union Territories.

According to Managing Director Yash Mutha, growth in FY25 was primarily driven by enhanced throughput and improved operational metrics, with strategic initiatives now focused on expanding beyond the traditional B2G model. The company has taken firm steps toward building an asset-light infrastructure by entering partnerships with Medikabazaar and United Imaging for deferred procurement of over 30 new imaging machines. Krsnaa is also entering oncology services through its investment in Apulki Healthcare to scale up PET-CT services.

Why Is Krsnaa Shifting Towards an Asset-Light and B2C Model?

Krsnaa Diagnostics is accelerating its diversification from a government-tender-dependent model to a more flexible and asset-light structure that can scale more efficiently. As highlighted by Mutha, the shift includes leveraging its strong brand visibility at PPP centres to make inroads into the direct-to-consumer (B2C) diagnostic market. This will allow Krsnaa to improve realisation rates, reduce capital intensity, and enhance return ratios across its operations.

By partnering with technology and procurement specialists, the company avoids high upfront capex while expanding its capabilities in radiology. It is also seeking to tap into rising demand for high-end imaging services, particularly for oncology, through its strategic investments. These changes position the firm to benefit from secular tailwinds in healthcare digitisation and consumer-led demand growth.

What Is Krsnaa’s Competitive Position in India’s Diagnostics Sector?

India’s diagnostic sector, valued at approximately USD 12 billion in FY24, has grown at a compound annual growth rate (CAGR) of 8% over the past five years. However, the organized diagnostic chains, including players like Krsnaa Diagnostics, have outpaced this growth with a 12% CAGR due to consolidation trends and rising preference for accredited diagnostic services.

Executive Director Pallavi Bhatevara emphasised that Krsnaa has established itself as a leading PPP-based diagnostic services provider, delivering high-quality, affordable services crucial for public health outcomes. With contracts secured in 8 of 12 states offering free pathology services and in 12 of 19 states for free radiology services, the company currently boasts a 75% win-to-bid ratio in state tenders.

This leadership in the public diagnostics segment, combined with its full-spectrum offerings in radiology, pathology, and teleradiology, has created economies of scale and reduced dependence on any single geography or client. Krsnaa’s strong positioning also stems from its ability to rapidly deploy services using cloud-based PACS (Picture Archiving and Communication Systems), ensuring consistency and speed in diagnostic report generation across geographies.

What Does the Q4 FY25 Snapshot Reveal?

In the March quarter of FY25, Krsnaa Diagnostics reported a 12% increase in revenue from operations to ₹1,861 million compared to ₹1,663 million in Q4 FY24. Sequentially, revenue rose 7% from ₹1,745 million in Q3 FY25. EBITDA for the quarter stood at ₹542 million, up 23% year-on-year and 16% sequentially, with a 29% margin.

Quarterly PAT rose to ₹207 million, an 11% increase from ₹187 million in the same quarter last year. Diluted EPS for the quarter came in at ₹6.30, up from ₹5.70 in Q4 FY24 and ₹5.88 in Q3 FY25. This consistent growth across financial parameters demonstrates Krsnaa’s operational stability and incremental gains from its cost optimisation and scale efficiencies.

What Is the Market Sentiment Around Krsnaa Diagnostics Stock?

Krsnaa Diagnostics Limited (NSE: KRSNAA, BSE: 543328) has seen a moderately bullish investor sentiment following the release of its FY25 financials. The company’s strong profitability and margin expansion have reinforced investor confidence, particularly around its asset-light expansion into the B2C market and its differentiated focus on underserved geographies.

Institutional flows have remained relatively stable, with long-term funds tracking Krsnaa’s execution on PPP tenders and expansion into higher-margin verticals like oncology. Analysts are cautiously optimistic, with most brokerage commentary highlighting the company’s earnings momentum and improving return ratios as positives, while also flagging the inherent risks in B2G tender volatility and execution complexity in new models.

Based on FY25 EPS of ₹23.56, the stock is currently trading at a modest trailing price-to-earnings ratio compared to listed peers in the diagnostics sector. Buy-side analysts have indicated a neutral to positive bias, with accumulation advised on dips, especially given the company’s unique Tier 2–3 market strategy and margin resilience.

What’s Next for Krsnaa Diagnostics?

With management indicating a strong forward pipeline of tender bids and technology integration plans, Krsnaa Diagnostics appears well-positioned for sustained growth. Future expansion will likely hinge on scaling B2C presence, expanding oncology diagnostics, and improving asset productivity across its current PPP deployments.

The company’s leadership has also expressed intent to pursue more value-added diagnostics and telemedicine integration, aligning with broader sectoral trends in digital health and AI-enabled diagnostics. With diagnostics penetration still among the lowest globally for India, Krsnaa’s hybrid B2G-B2C model can tap latent demand across state-sponsored and consumer-driven segments.

At a time when healthcare services are rapidly decentralising, Krsnaa’s scalable diagnostic platform provides a distinct advantage. The focus on underserved regions, combined with strategic partnerships and digital backbone, enhances its ability to deliver volume-led profitable growth while maintaining low capital intensity.