Suraksha Diagnostic reports robust growth in Q3 and 9M FY25 despite operational challenges

Suraksha Diagnostic Limited, the largest integrated diagnostic chain in Eastern India, has reported strong financial performance for the third quarter (Q3) and nine months (9M) of fiscal year 2025 (FY25), showcasing resilience despite external disruptions. The company’s unaudited results reveal significant growth in revenue and profitability, reflecting its operational efficiency and strategic execution.

Suraksha Diagnostic’s total income for the nine-month period reached INR 1,900.3 million, representing a 14.4% year-on-year increase. This growth underscores the company’s ability to navigate challenges such as seasonal fluctuations and a doctors’ strike that impacted operations in Q3. Despite these setbacks, Suraksha Diagnostic demonstrated strong financial discipline, with its profit after tax (PAT) surging by 41.7% to INR 238.1 million, compared to INR 168.1 million during the same period in the previous fiscal year.

How did Suraksha Diagnostic achieve strong growth in FY25?

The impressive Suraksha Diagnostic growth in FY25 can be attributed to its robust business model, cost optimisation strategies, and strategic expansion efforts. For Q3 FY25, the company recorded total income of INR 601.1 million, marking a 14.1% year-on-year growth. Although there was an 11.7% decline compared to the previous quarter due to seasonal factors and external disruptions, the company maintained a solid profit margin.

The company’s EBITDA for Q3 FY25 stood at INR 188.6 million, reflecting a 16.7% increase year-on-year. The EBITDA margin improved to 31.7% from 31.2% in the same quarter last year, highlighting the impact of efficient cost management practices. Over the nine-month period, EBITDA reached INR 650.8 million, with an EBITDA margin of 34.8%, up from 32.5% in the corresponding period of FY24. These figures reflect Suraksha Diagnostic’s ability to maintain profitability even in challenging market conditions.

Ritu Mittal, Joint Managing Director and CEO of Suraksha Diagnostic, commented that while the doctors’ strike had a lingering effect on Q3 performance, the company’s focus on cost control and operational efficiency helped cushion the impact. She emphasised the company’s long-term growth potential, driven by strategic investments and an expanding network of diagnostic centres.

What factors influenced Suraksha Diagnostic’s Q3 FY25 performance?

Several factors shaped Suraksha Diagnostic’s performance in Q3 FY25. The most notable was the impact of a doctors’ strike, which led to reduced patient inflow and affected revenue generation. Seasonal weaknesses typical of the third quarter also contributed to a decline in topline performance compared to the second quarter. Despite these challenges, the company’s strategic cost-cutting measures helped preserve margins and ensure continued profitability.

The company’s financial performance in FY25 demonstrates its resilience. Profit after tax for Q3 FY25 stood at INR 59.9 million, marking a 31.9% year-on-year increase. The PAT margin improved to 10.1% from 8.8% in the corresponding quarter last year. For the nine-month period, PAT reached INR 238.1 million, reflecting a remarkable 41.7% growth compared to INR 168.1 million in the previous fiscal period.

Mittal highlighted that the company remains committed to growth despite temporary setbacks. “We are focused on internal growth through the addition of new centres and exploring inorganic growth opportunities. These initiatives will strengthen our leadership position in Eastern India and drive sustainable revenue growth,” she stated.

How is Suraksha Diagnostic planning to sustain its growth?

Suraksha Diagnostic’s growth strategy is anchored in expanding its diagnostic network and leveraging operational efficiencies. The company has a strong presence in West Bengal, Bihar, Assam, and Meghalaya, and plans to further consolidate its market leadership through the addition of new diagnostic centres. This expansion is complemented by strategic investments in technology and infrastructure to enhance service delivery and operational efficiency.

The company’s central reference laboratory is accredited by the College of American Pathologists, while its three laboratories are certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL). Additionally, three of its advanced diagnostic centres hold accreditation from the National Accreditation Board for Hospitals & Healthcare Providers (NABH). These accreditations reflect Suraksha Diagnostic’s commitment to quality and excellence, which have been instrumental in driving customer trust and revenue growth.

Looking ahead, the company plans to capitalise on its strong brand presence and operational capabilities to drive further growth. Suraksha Diagnostic’s management is optimistic about the future, expecting a recovery in business activity and margin expansion in the coming quarters as external conditions stabilise.

What’s next for Suraksha Diagnostic in the diagnostic sector?

Suraksha Diagnostic is well-positioned to capitalise on emerging opportunities in the healthcare and diagnostic sectors. The company’s strong financial results for 9M FY25 demonstrate its ability to deliver consistent growth, even in challenging environments. By focusing on operational excellence, strategic expansion, and quality service delivery, Suraksha Diagnostic aims to maintain its growth trajectory and reinforce its leadership in Eastern India’s diagnostic market.

While external factors such as labour disruptions and seasonal fluctuations posed short-term challenges, the company’s long-term growth prospects remain strong. Suraksha Diagnostic’s emphasis on cost optimisation, network expansion, and service quality will continue to drive revenue growth and profitability in FY25 and beyond.