Thanks, Deep. Good day, everybody.

I, on behalf of Equirus Securities, welcome you all to quarter four FY '26 results conference call of Krsnaa Diagnostics. Today with us we have Mr.

Rajendra Mutha, Chairman and Whole Time Director, Mr. Yash Mutha, Managing Director, Mr.

Mitesh Dave, Group CEO, Mr. Chandra Prakash Singh, Interim CFO, and Sujoy Bose, Head - Secretarial, Legal and Compliance.

I would now like to hand over line to Mr. Yash Mutha for opening remarks, and subsequent to which, we will have a Q&A.

Thank you. Yash, over to you.

Thank you, Bharat. Good afternoon, everyone, and thank you for joining us.

At Krsnaa, we're not building just another diagnostics company. We are building a diagnostic platform for Bharat, working closely with governments to strengthen public healthcare infrastructure and improve access to high-quality diagnostics across the country.

At the heart of this mission is a very simple belief: quality diagnostics should not be a privilege limited by affordability or geography. Through our PPP-led model, millions of patients, particularly from the economically weaker sections of the society, are able to access advanced diagnostic services either at highly affordable prices or completely free of cost through various government healthcare initiatives.

In many ways, that is the true purpose behind the platform we are building. From the very beginning, Krsnaa consciously chose a different path from the conventional diagnostic players.

While most diagnostic businesses historically followed an asset-light, urban-centric, and pathology-led models, Krsnaa built an integrated radiology and pathology platform leveraging the PPP route, working with the governments to serve absolutely underserved geographies. In that context, comparing Krsnaa with traditional diagnostic model alone does not fully capture the scale, purpose, and the long-term structural value the platform we are creating.

This is undoubtedly a more difficult and capital-intensive model to build. It requires investments in infrastructure, advanced medical equipments, technology systems, logistics capability, and skilled healthcare manpower, along with the number of radiologists and qualified pathologists.

This very complexity is what creates Krsnaa's differentiation and the long-term moat because once such infrastructure is built at scale, it becomes extremely difficult to replicate operationally, financially, and structurally. Additionally, given the nature of a model where capital deployment happens upfront while the utilization and monetization follows over time, our reported return ratios such as ROC and ROE during the expansion phases may not fully reflect the underlying operational potential of the platform being created.

As these assets mature and the utilization scales up, we believe the operating leverage inherent in the model becomes significantly more visible. What makes Krsnaa unique is the combination of integrated radiology and pathology capabilities, deep PPP presence, 24/7 operational capability, high affordability pricing, and the ability to deliver diagnostics at population scale while maintaining strong margins and quality standards.

That is where Krsnaa stands apart. In line with this strategy, Krsnaa is cumulatively deploying nearly ₹5,000 million of capex across Rajasthan, CT-MRI expansions, retail infrastructure, and associated backend systems.

Against this, the company now has a long-term revenue visibility both from the existing operations and the newly secured business aggregating to nearly ₹6,000 to ₹7,000 crores over the next 5 to 7 years. That, in our view, is a very important reflection of depth, scalability, and long-term visibility embedded within the platform we are building.

Coming to the FY '26 performance, our revenues stood at approximately ₹7,728 million. The EBITDA stood at approximately ₹2,149 million with margins of around 28%.

Our reported PAT grew significantly to approximately ₹1,014 million, and the Q4 reported PAT alone stood at approximately ₹417 million, growing over 101% year-on-year. Importantly, this performance was delivered while simultaneously executing one of the largest diagnostic infrastructure expansions undertaken in the country.

Today, Krsnaa operates 190+ CT and MRI centers, 147 pathology laboratories, more than 4,700 patient collection centers, presence across 18 states and Union Territories, supported by 350+ radiologists, 100+ pathologists, and 3,000+ healthcare professionals. In FY '26 alone, we processed nearly 59 million tests and served approximately 20 million patients.

These are just not numbers; these are millions of clinical decisions enabled by Krsnaa's infrastructure. Importantly, we have achieved this while delivering diagnostics at prices which are nearly 70% lower than the prevailing market rates while maintaining margins comparable to some of the best players in the industry.

India's diagnostics PPP in Rajasthan is now substantially implemented with 27 mother labs and 800+ collection centers being rolled out across districts. Upon completion of our existing order book, Krsnaa will cross 200+ CT-MRI centers, an important milestone making us one of Asia's largest radiology platforms.

The radiology infrastructure, the pathology integration, the logistics capability, and the doctor network, along with technology systems and the statewide execution, create a very strong and long-term moat. The second engine for Krsnaa is our retail expansion leveraging PPP infrastructure.

Unlike conventional diagnostic players who build retail through heavy incremental investments and customer acquisition cost, Krsnaa's strategy has been to leverage the deep diagnostic infrastructure we've already created through our PPP network across the country. Retail today contributes across approximately 8% of the company's revenues and is increasingly contributing towards improving the overall cash profile of the business.

Strategically, we believe that retail has the potential to become a very meaningful long-term growth and cash flow driver for Krsnaa. Our strategic investment in Aapulki Healthcare has been in the right direction.

The value gain of approximately ₹222 millions during the year validates our investment thesis around integrated tertiary healthcare and long-duration healthcare infrastructure partnerships. More importantly, Aapulki positions Krsnaa within the oncology and cardiac care ecosystems, which we believe represent a very significant long-term healthcare opportunity in India.

We also remain sharply focused on collections and working capital discipline during the year. In the half year alone, collections stood at approximately ₹2,910 million, including ₹1,580 million in Q4, the highest quarterly collections in our history.

14 years, virtually zero bad debts. That reflects the underwriting discipline and execution culture embedded across the platform.

Krsnaa is built around accessibility, infrastructure efficiency, affordability, and population scale healthcare delivery. We are building a healthcare infrastructure that serves millions of patients across India.

Given the nature of PPP business, implementation timelines and project tenures can create variability across individual periods. However, if one looks at Krsnaa's journey over the years, the company has continued to grow consistently.

The headline numbers themselves reflect the strength and resilience of this model. Over the last couple of years, despite certain projects completing their tenure, revenues from these projects tapering off, and implementation timelines in some large projects taking longer than anticipated, Krsnaa has continued to grow consistently while simultaneously expanding infrastructure and investing for the future.

In context, during the last 5 years' period, Krsnaa has recorded an approximately 12% revenue CAGR compared to around 8% sales CAGR for the broader diagnostics peer group. In many ways, that itself is a validation of the scalability and resilience of the platform that we have built.

Tenders and project cycles will continue to evolve over time, but what Krsnaa has created today is far larger than any individual contract. It is a deep integrated healthcare infrastructure platform with strong execution capability, significant entry barriers, and long-term public healthcare relevance.

That is why we believe the long-term potential of platform still remains significantly underpenetrated. If I step back and look at Krsnaa today, I believe the company needs to be viewed not merely as a diagnostics business, but as a national healthcare infrastructure platform serving Bharat at scale.

In many ways, Krsnaa sits at this intersection of healthcare, infrastructure, and nation-building, and I believe the full potential of Krsnaa is still unfolding. With this, thank you.

Now I hand over the call to our Group CEO, Mr. Mitesh Dave, to walk you through further updates on retail and the operations.

Over to you, Mitesh.

Hi. Good morning, everyone.

Here Mitesh Dave, Group CEO, Krsnaa Diagnostics Limited, welcoming you all today in the quarter four earnings call. Thank you, Mr.

Yash, for sharing details and the insights for FY '25-26. Now as we close FY '26, I'm pleased to share that this has been a year of disciplined execution, strategic expansion, and strengthening of our long-term fundamentals.

Despite a dynamic operating environment, Krsnaa Diagnostics has continued to deliver resilient growth while steadily improving operational efficiencies, expanding retail presence, and strengthening cash flows across the businesses. During the quarter four, our revenue from operations and sales stood at approximately 1,926 million, representing year-on-year growth of around 4%, sequential quarter-on-quarter growth of nearly 7%.

EBITDA for the quarter stood at approximately 559 million with the EBITDA margins of 29%, reflecting the efficiency and strength of our operational discipline along with the scalability of our integrated diagnostic platforms. One of the most encouraging development during the year has been our focused effort towards improving collections and strengthening working capital efficiency.

Through the sustained engagement, disciplined receivable management, and tighter execution across the projects, we have successfully reduced our DSO from 155 days in quarter three to 139 days at the end of the quarter four FY '25-26. This reflects not only improvement in cash conversion cycles, but also reinforces our sharp focus on building a healthier and more sustainable balance sheet.

Our retail diagnostic business continues to emerge as a very strong strategic growth engine for Krsnaa. Retail diagnostics in India remains massively underpenetrated, especially outside metro cities and Tier 1 towns.

Patients are looking for transparent pricing, reliable reports, quick turnaround times, and a healthcare experience that feels simple and accessible. This is where we believe our model creates long-term value.

Quality and execution continue to remain the center to our organization. Today at Krsnaa, we operate with 54 NABL-accredited labs, 54 NABH-accredited radiology centers, India's first ACR-accredited teleradiology platforms, India's first CAP accreditation pathology laboratory in the government facility.

The journey for retail started approx a year before, and within a year, retail contribution for '25 FY '26 stood at approximately 8% of the overall revenue, in line with our strategic roadmap. More importantly, the underlying momentum continues to remain extremely strong.

Today our retail network had expanded more than 3,500+ touchpoints across the country, including 500+ franchises and collection center across five states. Our foray into specialty segment in certain selective geographies strengthens our presence in strategically important markets, and we continue to see encouraging tractions across Maharashtra, Punjab, Assam, Odisha, and Himachal Pradesh.

Going forward, we remain highly optimistic about opportunities ahead. For FY '27, we expect retail contribution to further scale up to double digits, supported by strong network expansion, deeper customer engagements, and increasing adoption of preventive healthcare and wellness services.

With our asset-light model, operational expertise, and growing brand credibility, we believe Krsnaa is well positioned to outpace industry growth and deliver sustainable long-term value creation. In FY '27, as a part of our strategic growth initiative, we are also exploring opportunities to expand in newer geographies beyond our existing PPP operational states through strategic alliances and selective acquisitions.

We will continue to strengthen both our PPP and retail business while steadily building one of India's most trusted, accessible, and future-ready healthcare diagnostic platform. With strong fundamentals, improving unit economics, a rapidly expanding retail footprint, and a highly committed team, we are entering FY '27 with a confidence, clarity, and large long-term vision for scale.

With that, I would now like to hand it over to call for the financial highlights to our Interim CFO, Mr. Chandra Prakash.

Thank you very much.

Thanks very much, Mr. Mitesh.

Good afternoon, everyone. A very warm welcome to the quarter four and full year FY '26 earning conference call of Krsnaa Diagnostics Limited.

Myself, Chandra Prakash Singh. I am the Interim CFO of the company, and it is my privilege to walk you through the financial performance for the quarter and full year ended March 31st, 2026.

FY '26 has been a year of systematic execution and milestone achievement for Krsnaa Diagnostics. We have achieved a sales of 7,728 million against the previous year sales of 7,171 million.

We crossed ₹1,000 million in reported PAT for the first time and achieved a reported PAT of 1,014 million against the previous year PAT of 776 million. We achieved EBITDA margin of 27.81% on full year basis.

Our EBITDA grew to 2,149 million against last year EBITDA of 1,958 million, representing a growth of almost 10%. Our retail business scaled from almost 10 crore in FY '25 to 60 crore in '26, which is a six-fold growth in a single year that firmly establishes the consumer appetite for Krsnaa's brand of affordable and quality diagnostics.

Our working capital situation is improving steadily. Collection of 1,580 million in Q4 FY '26 was our highest for the year.

Just to clear the recovery trajectory, we are going to increase it further. Our receivable stood at 139 days against 155 days in the previous quarter.

Our improvement journey to sub-120 days guided for FY '27 remains on track. Just as said by Mr.

Yash, I wanted to reiterate this again that we have maintained our unblemished record of virtually zero bad debts since inception. The timing delays are administrative in nature, not a credit risk issue.

Our balance sheet remains healthy. Our borrowing include NCD issued to ADB worth 400 4,300 million, term loans, and working capital.

We continue to fund our growth through a combination of internal accrual, operational cash flows, and efficient vendor finance capex model. Capital allocation remains at the heart of our growth strategy.

We have planned a total capital investment of 5,000 million in FY '27, which includes both the carryforward commitments from FY '26 and fresh investment in FY '27, which includes both Rajasthan and our projects in radiology and other projects. Looking ahead, we see FY '27 as the year in which all the investment we have made come together: Rajasthan in full swing, retail achieving the breakeven and accelerating to next level, new MRI adding to radiology base adding to the next layer of long-term growth.

The foundation is strong. The execution track record is proven, and the opportunity ahead for us has never been larger.

Last but not the least, I am happy to share that the board has recommended a dividend of ₹2 per share, that is 40% of face value. With that, I would like to conclude the CFO's opening remark.

We are deeply grateful for your continued confidence in Krsnaa's journey. I am now inviting the moderator to open the floor for your questions.

Thank you.

Hi, good morning, Yash sir. I want to know any contribution from Rajasthan in the current quarter numbers, and also how the ramp-up will take place in this financial year from Rajasthan?

Here we can expect by H1 will be at full-fledged?

Hello, Mr. Bala, good afternoon.

In this quarter, there was no contribution of Rajasthan. We were all in the phase of establishing the labs and the collection centers.

We see Rajasthan contribution coming in from Q1 FY '27. The revenues have started coming up.

The entire installation is expected to be completed majorly within Q1 with some bit of it flowing into Q2, by Q2, we expect all the installations to be completed.

What could be the revenue potential from Rajasthan in this year?

Rajasthan, we believe the revenue potential to be in the range of about 100 to ₹150 crores on a full-year basis.

A follow-up on that one, earlier we were expecting around 250 to 300 crores, why there is a deep being a first year or is it same kind of revenue we can expect going forward also?

From an aspiration and the project value perspective, the number that we quoted earlier holds good. It is just that, considering the ramp-up here and from our experience, we like to be have a conservative approach.

Okay. Secondly on order pipeline, this is the last tender we have to implement, and also some Maharashtra radiology pending center for yet to implement it.

As of now, there is no progress on the radiology because the centers remain similar. When do you think that we can complete that radiology center, and what could be the other chances of getting some new orders in the current financials as of now?

I think there is no pipeline also.

Sure. Mr.

Bala, there are two parts of the question. The first part is regarding the MRI or the radiology projects.

Pleased to inform you that the MRI centers have already been started launching in the last couple of months. We have about 10 MRIs that are going live, some of them already live, some of them will be in the coming weeks or months.

We have MRI base getting activated. As regards the other PPP projects, there were PPP opportunities, but, as we maintain in the past, Krishna is conscious about which PPP project to participate and eventually add into our kitty.

There are a couple of PPP opportunities which are under works, and hopefully in the coming quarters, we should be able to update you all with the outcome of the same. We continue to pursue opportunities, but also conscious of the fact that we have a large Rajasthan project under implementation, the MRI is now getting live, and pursuing selective opportunities which create long-term value for all of us.

Good to. On the retail part, this time we have seen flat QoQ.

Being a scale-up business, I think it is a little bit slowed down on the revenue front. How do you think this will shape up in the current year?

Also on the margin front, this quarter we had good margins even excluding that valuation gain. In this current year, can we maintain that 29-30% margins, or this is a one-off?

Sure. Mr.

Bala, on the retail side, I'll ask Mitesh to answer the query. With regards to the margins profile, we are working towards maintaining the current level of EBITDA margins.

There might be some impact in the Q1 where there is upfront deployment of manpower. For example, in Rajasthan almost we are adding up 5,000 people.

To that effect, there will be some impact, but on a annualized basis, we are trying to maintain the same level of EBITDA margins that we achieved during the year. Mitesh, on the retail side, you might add.

Yeah. Hi, good afternoon, Mr.

Bala. This is nothing, but it's an basic part and parcel of the any business, a quarter up or a quarter a little bit muted.

It has nothing to do with the or nothing to impact on any long-term planning or long-term vision that we carry. Another quarter one and further upcoming quarters, you'll going to see even very large extent of growths and numbers coming through from the retail path.

That's helpful. Last question, it's my case, one bookkeeping question.

What is the amount of the receivables which are delayed by more than 6 months or the long-term pending receivables are there, like Karnataka and Himachal Pradesh? What is the status of that, and how much is pending as on date from that old pending receivables, sir?

For both the projects for HP and Karnataka, collections have happened. HP almost significant collections have happened.

Karnataka also we've received a sizeable chunk. There are, certain key people who are there, for example, some of the officials have been transferred, there are delays, but I think it's in track, and hopefully in the coming quarters, we'll be collecting those as well.

The individual state-wise amounts will share ask Sujoy to share separately with you.

That's all from my side. Thanks a lot, and all the best, Yash and Krsnaa team.

Sure, thank you so much, Mr. Bala.

Hi, sir. I hope I'm audible.

Sir, my first question is adjusting for the non-renewal this year, what was our like-to-like revenue growth on the PPP side?

Because

reported revenue growth was little muted.

Just wanted to

see adjusting for the non-renewal, what was our organic growth this quarter and the full year?

Our organic growth for like-to-like projects which are continuing is almost in the range of around 13-odd percentage, and that was offset to an extent by some of our projects that got closed because of their tenure got completed.

The 13-odd percentage for full year, sir, and for the quarter?

For the quarter, I think we'll share the details offline with you.

Sir. The second related question, sir, what are the quantum of projects that are up for renewals, and we can expect any kind of non-renewal this year, if you can give some color on that?

I think except for Tamil Nadu, there are not major contracts which are up for renewal during the year. Because typically in this journey also many times the authorities also give us to extend, which is happening if tender is published or not.

Not in the immediate, but if anything comes up, we'll update in the coming quarters as well.

Sir. The second question, sir, is just wanted to understand on the PPP side again.

We provide completely free-of-cost kind of treatment through government schemes, but are there any price escalation clauses there? What is the pricing looks like?

If you can give some context and color to that?

Sure, sure. For the PPP tenders, we have rate escalations which are factored into the agreements.

They're contextually embedded, and these rate escalations vary for each tender, ranging anywhere from 2% to 5%. Some of them are annually; some of them every alternate year.

There are these pricing arrangements that are there in each of these contracts.

Sir. Thank you, sir, and all the best.

Thank you.

Thanks for this opportunity, sir. If you can give what is the revenue breakup between the pathology and radiology for the year, sir?

I think the split between radiology and pathology is in the range of 50-50%.

50-50, okay. My first question about radiology project, sir.

Whether we have downsized couple of pipeline project because earlier the Maharashtra was something like 56-odd MRI-CT center were supposed to be created, and now in this presentation, we are mentioning after the pipeline project, the number will increase by just 10. If you can give some clarity about that and what is the update about implementation of the other pipeline radiology centers in the Maharashtra?

Yes. I think from the headline numbers, there's no downsizing of any of our projects.

As I said, if some of the projects would have completed their tenure, some of those centers would have got in. On the radiology front, we are adding MRI centers, like I mentioned, we have almost 10 MRIs that will be added in the coming quarter as well out of I think the total 17-odd MRIs that we are under implementation.

Those are the new centers over and above the existing numbers that we have shown.

Okay. That means the pipeline is just 10 more centers in the Maharashtra, that is how one should believe?

10

and total is around 17. 10 are already at the installation stage where they are under commissioning.

Sir. Sir, now regards to pathology and related to Rajasthan also, see, you have guided for about 150 crore kind of an annualized revenue.

Since we are likely to set up something like 157-odd centers in Rajasthan, we are talking about 1 crore revenue per center kind of an equation, which looks very, very conservative considering the 3 crore kind of run rate what we are having. Any headwind that you do see for that PPP contract, sir?

Surya,

I think that's a very valid question, and, like we've been also maintaining in the past, from an aspiration perspective and the numbers that we've quoted, of course, the headline as a headroom for growth is significant. We are just being calibrated in our guidance or the communication that we do, wherein this is something we know which is realistic.

Of course, there's an upside as more and more collection centers get activated, more labs get activated. That's certainly an upside, but from a guidance perspective, we'd like to be maintaining a conservative stance.

Okay. In that case, then may I know, sir, what is the kind of upfront cost that we would have already seen in FY '27 '26, which would have to some extent pressurized our margin so far as Rajasthan is concerned?

Mr.

Surya, we've been trying to see that the cost and the revenue go hand-in-hand. In FY '26, there were not significant cost impact that came through, except for few of, let's say travelling or some of the lodging cost.

Hopefully in Q1, as I said, Q1 there will be some pressure because, we have as I said, almost 5,000 people onboarded at these different collection centers or the staff. That will be, but again, the revenues are also flowing through.

We're trying to see how the cost impact on the EBITDA is not very high and, probably a few basis points here and there and should be able to allow us to continue maintain the EBITDA margins.

Okay. Just the last question from my side, sir.

I'm sorry to interrupt, Mr.

Good afternoon. My first question is in Rajasthan next year we can expect a sale of more than 200 crore plus as we know this territory also and ramping up will be over till then?

Yes. As I said, from a headline, we expect around 200 crore plus, but since PPP is under implementation, there could be certain operational delays.

We are just being careful in terms of the guidance and restricting to about 150 crores.

Okay. On retail private, what is your aspiration from longer wall around 3, 4, 5 years, whatever you can think of, and can you just elaborate on that?

Good afternoon, Mr. Manoj.

Over the longer horizon, around 3 to 4 years or 5 years kind of a period that we are looking for, having contribution of retail alone within the entire group revenue close to 25% to 30% should be there in the line with.

Okay. My last question, how much sale we are expecting from the MRI from the Maharashtra?

Could you just repeat the question,

Manoj ji? Sir, how much sales we can expect adding more 10 MRI in the Maharashtra?

Manoj ji, we'll share this number to you offline.

Thank you. Thank you and best of luck.

Thank you.

Good afternoon, and thank you for taking my questions. This is not a question, first the comments, I'll go to the two questions which I have, but just an opening just a comment.

When we look at the narrative around Krsnaa and the qualitative aspects, I think you tick mark all boxes with respect to the healthcare opportunity and the way it has done and the scale at which we are operating and even the business model at which we have been able to crack compared to the challenges which are there in the PPP. Great narrative on that and great team execution there.

In the same breath, I'll also say that the execution, and you will also appreciate that execution has lagged given the opportunity size which we had. I just had a one longish observation and one from the year's perspective.

From listing perspective, FY '21, we were looking at 20-25% as the minimum CAGR given the penetration, low healthcare, opportunity size, the states at which we're present and it's been there. It's what we have been looking at over the long term.

After 4 years, the CAGR is more in the region of 12%, 10-12%, and out of that, 2 years have been flattish. It's just that there has been lumpiness in 2 years.

When we look at FY '27, while Rajasthan will scale up, but the pipeline of new projects, as you said, because of pricing and it's not there, does it structurally mean that we are looking at a more calibrated growth as we go ahead given the capex requirements or given the challenges in there, firstly? Secondly, FY '25, I remember we were looking at 25% growth; we ended with 16% growth.

FY '26, we were looking at 15-16% growth; we ended with 1% growth. Even in the near term, words of guidance versus what has been the delivery has been slightly subpar given the narrative.

Sir, your comments on that.

Sure. I think you kind of touched upon two aspects of the model.

The first aspect regarding the PPP as a business model as an opportunity, that opportunity still exists. It's still is there.

The only difference in our approach, as, post-listing like you mentioned, of course, given the scale at which we were operating then, considering the various states that were supposed to deploy PPP, we were also bullish and, looked at those opportunities to convert, to mature, and to deliver. Having said that, over the period also if you can see there are various PPP projects that Krsnaa undertook and which are under implementation.

Some of the PPP projects, considering, the the scale at which they came in or the price point at which they came in, we decided not to participate. The simple reason being we we don't recklessly pursue PPPs, and that has not been just post-listing; it has been since the historical trends, and the reason why Krsnaa is able to be a successful company in the PPP space, whereas there are other players who have not been successful enough.

This is, which is that core at Krsnaa. We look at PPP projects which are, in the sense able to create long-term value.

Now with regards to the growth when you mentioned about, whilst yes, we had aspirations to grow at a higher, there were also certain reasons. Some of the reasons could be attributed to, as I said, delays.

Just to give you a reference of Maharashtra, the Maharashtra project itself had certain delays getting government sites on time. When we project, we expect certain things to happen in certain amount of time, but then there are these operational delays.

Some of them were setbacks which we didn't experience beforehand. These are there.

Fundamentally, the model remains intact. The strength in the model is there.

We continue to look at PPP projects, and as I said, there are a couple of PPP projects in pipeline which we're working towards and hopefully, we should be able to announce it in the coming quarters. I don't see as a change.

Yes, we have been calibrated in our approach in terms of the guidance considering these backgrounds, and which I believe, is a more mature way of looking at the business since the last couple of years.

Right, right. Okay.

The second element is slightly more on the financial side. I'll just club two, three in order to combine them, request you to answer each of them on just one by one.

I'll club it so that it's the part of the two questions. One is the Rajasthan total capex was expected to be 200 to 250.

Where the CWIP shows more than 200 crores, largely what it shows is a large part of it is already gone inside. With respect to that, yet we are saying FY '27 to be 500 crores.

Where is such a large capex expected to come from given the fact that the projects pipeline at least have not been yet announced and it will take some time? The residual I

think the 500 crore capex is a combination of Rajasthan, the MRI projects put together. Rajasthan about 300-odd crores, and if you take MRI, which is about 150-odd crores, and the balance are for certain small projects like we've won in Jharkhand and Ranchi.

That combination put together is a 500 crore capex that is outlined. Now

Is that a cash flow capex? When we say capex, we understand as cash flow.

Are you taking of capitalization?

This is capital investment. When I say capital investment, it's a combination of the debt, the combination of our internal accruals that we would be, and it's an investment that No, no,

we will be spending 500 crores in this year is what you are saying? Because we must have spent for Rajasthan already, right?

Let me just clarify. The 500 crores capex is the capitalization that we expect to happen in this financial year, out of which some of it is lying in CWIP, right?

The balance like even the Maharashtra MRI projects the capitalization will happen in this year. The amounts were paid at different points in time, either to vendors or through capital advances.

The capitalization and therefore the capital investment happens in this financial year. I hope that clarifies

the question. Yes, yes.

Now it clarifies, yes. On the number side as I was trying to ask a little more, we also had aspiration to bring the receivables down to 100 days at the start of the year, subject to the expectation.

We are at 135 days. On the receivable side also if you can mention there has been regularly some or the other developments, whether it was the systems upgrade at NABL and NHM, whether it was shifting, as you mentioned, or some or the other things, but then and we are still guiding for 120 days.

The understanding was it should be more in the region of 100 days. Why are we back to 120 and not able to achieve 100 days?

How long do you see that the HP and Karnataka things will continue to be there in the numbers? Sir, please let me just complete one more small question so that my turn is over and I'll come back in the queue.

Just one small thing. Rajasthan FY '27, once it comes in the P&L, do you believe that FY '27 PAT will be higher than FY '26 because of the cost and other things?

That's it. Yes, sir, two questions.

Thank you.

Okay. Again, I'll try to answer the two questions.

The first one was regarding receivable delays. The receivable delays are something which if you see again historically, we have not seen these kind of delays, and we appreciate that and we've taken significant efforts to bring it down.

The challenges are something which are some of them are beyond our control. For example, when a MD NHM officer or a government official gets transferred or moves out, the new officer takes his own time to look into the records.

There were also some challenges from the funds that were coming from the central and the new system, the SNA Sparsh, that is being deployed where there are operational challenges at the respective governments. There are multiple reasons why the receivables.

Therefore, whilst if you see internally, we would love to bring it down to 100 days, which has been our historical trend, but considering the realistic position on ground, we have now looked at bringing it down to 120 days. We've already come to almost 139 days, and I think the teams are geared up to bring it down with the stronger documentation.

Also if you see a reflection from our past track record of 14 years, which is almost a virtual zero debt, we try to maintain that, and that is how Krsnaa whether it is through operations or through the process or the checks and balances, we try to achieve that. Now coming to your second question about the profits once Rajasthan gets fully implemented, whether they'll be higher, directionally, yes, we would love to have profits which are higher, but we are also cognizant that there's an impact of ramp-up that happens and the revenues which I said from a conservative basis.

We would love to achieve that, but I think as maybe in some coming quarters, we'll be able to have a much better clarity once the full labs get deployed, the full staff gets deployed. Yes, aspirationally, we are trying to achieve at least the same level of PAT margins in the coming year as well.

Yes, hi. Good afternoon, Yash, Mitesh, and team.

Yash, my question was on radiology. So '24 to '25, we expanded from 148 centers to 180 centers.

We were expecting some revenue flow through at least in '26. By when do you expect this expansion that we took from 148 to 180 for the revenue to come in?

Yeah. Hi, Lokesh.

The revenues are expected to come in this year. As I said, there were certain delayed installations of various centers.

The revenues will start coming for the radiology expansion this year as well.

Okay. My second question, just a clarification, Yash, that is it correct to understand that by Q2, we will have all the infrastructure up and running for Rajasthan, which would take our pathology lab network to about 297, including satellite and mother labs and reference labs?

That is one. Second, do we see FY '27 where radiology goes, like you mentioned 190 we are already, 10 we are adding, and 60 are in pipeline, so that 60 also gets completed by FY '27 exit?

Could you just repeat the question? I think you spoke on the pathology front.

Pathology going to 297, which is existing plus Rajasthan coming in. Is that the correct understanding by Q2?

Would that happen?

Yes. Yes.

Second is radiology. We are at 190.

We are adding 10 centers in this quarter, Q1, and you mentioned there are 60 or 17 in pipeline. Will that also get added by this year, or that will get added by the next year?

Total are 17, out of which 10 will be added in this quarter and the balance 6 or 7 in the coming quarters.

By FY '27 exit, we will be at about 260 radiology centers as well. Is that understanding correct?

No, 190 +

17 and another 5. 170.

Okay. Got it.

That's it from my side. Thank you so much.

Sure, thank you.

Sir, am I audible?

Hello,

am I audible? Yes, you are.

Thank you. Sir, thank you for the opportunity.

Sir, it's great to see such a healthcare platform built, but my question is coming from the long term to understand the inherent risk in the business. Because we are dealing with governments, how should we think because receivables, it's last 2 years you have this Himachal and Karnataka.

Tomorrow governments can change in other states, and if it happens in another one, two states, suddenly our balance sheet and our business model will look very risky. Now we have started taking debt and we are going in huge expansion phase.

How do you think that you said you never had a debt, but maybe that may not repeat because we have already seen two states giving us a lot of trouble. Tomorrow governments can change in the center and in many states, right?

How should we look, and business model within two, three quarters can completely be off the tracks, right? How should we think how you guys are taking care of the receivables risk, or why should we think that receivables is not a big risk for this business model?

Sure, I'll answer that. If you look at it Krsnaa historically as well, we've seen various governments come and go.

It is not that this is the first time we are seeing. Governments will come and go.

These tenders typically are with central and the state combination. Per se, as I said, as a business model, the risk does not change significantly.

There have been procedural delays. There were elections post that, the new system came in, and of course some of the budgetary approvals from the center is delayed.

If you see apart from these two states, we are doing business across 18 states, and the problem doesn't exist in the other so many states. So Sir, but

other states are BJP. These two states are Congress, tomorrow Congress can come in other states, right?

No, no.

Even we've seen governments change where Rajasthan it was earlier in the Congress, then it came to BJP, likewise. We've seen other states where governments have changed.

Whether it is Congress or BJP, it really doesn't matter because, as I said, these funds are from the NHM, which are centrally driven funds, and they are following through a budgetary process. The delays, as I said, mostly are operational in nature, nothing to do from a structural or a strategic perspective.

In the contract, do we have any liabilities if we stop doing services like you stopped one service in Karnataka? That clarity if you give because this keep

I'll answer that. In some of these contracts that there are arrangements where we can suspend the operations if payments are not done.

Again, as I said, Krsnaa has been what we call it as temporary suspension of these operations wherein we inform the authorities in advance that the payments are getting stuck, kindly release the payments or we'll be forced to suspend. When we do this, and this has actually borne fruit where we have now receiving confirmations from the government that the payments will be made.

In some instances, the payments have also come through. As I said, this is a partnership between the government, and this is whilst there are other sectors where payments are getting impacted, but considering healthcare and the NHM-driven model, we do get our funds on time.

Delays have happened, which, as I said, is an aberration, but we are continuously monitoring this and taking steps to again strengthen this going forward.

Thank you for the opportunity. I believe I'm loud and clear.

We are basically new to the business, we are trying to understand few aspects, and most of my questions have been answered. One question on the leadership team.

Can you talk about the few high-level resignations people are getting because I can see so many resignations in the past few months: CFO, CBO, COO has left. Also, in the last concall, I think Miss Pallavi Jain was there.

She was Executive Director. Can you talk about her profile, what she was handling and what she's doing right now?

Basically high-level question on the leadership team because it's a very operational heavy business. It's

yeah. Hi.

I think from an operational perspective, the leadership team remains intact. It's strong to continue deliver.

People will come and go, which happens in any company as we move along. Just to give you a reference, our earlier CFO spent 5 years, and after 5 years, he wanted to pursue his own personal growth plans, so that is how.

5 years itself demonstrates that there was stability, and likewise for the other players. Including Pallavi, her role was handling the installation of our centers, looking out at governments.

Again, after having spent so many years and as discussed with the board. Fundamentally, from a leadership team perspective, the team is stable.

We have Mitesh Dave, our Group CEO, along with me Chairman as well, and now the Interim CFO and the rest of the team. I think the team is intact and strong to deliver growth and value in the coming years and coming quarters as well.

Any specific details, you can reach out to Sujoy, and we'll share more of these details offline. A

last follow-up question on the same thing. I think Pallavi was the co-founder at the start, right?

Why was she not given an equity at that particular stage?

I think Pallavi was not a co-founder. She was a part of the founding team member.

Regarding the equity or not, I think those are personal questions which we'll probably take it offline.

Hello? Yeah.

Just a follow-up, sir. Just on the Aapulki, now we have mentioned that Aapulki is no longer a associate company.

Does that mean we have monetized our investment there? That is one.

Related question is that Aapulki and the chain of Aapulki Hospitals was considered to be one of the key growth driver for us also. What happens to that opportunity if Aapulki is not a partner for the business going ahead?

No, no. Mr.

Surya, Aapulki's investment from an accounting, it's not an associate, but our partnership is intact. We have exclusive rights for all the diagnostics, both in the cardiology and oncology space, for the next 30+ years across all the hospitals that Aapulki will be coming in.

The first one was recently launched by the hands of Honorable Chief Minister of Maharashtra, and therefore now it's entering into the business where the business will start ramping up, and the other hospitals are under different stages of construction. We do have the growth strategy that we had envisaged.

That is bearing fruit. As these hospitals ramp up, we have the exclusive tie-up for their revenues on the diagnostic side.

Again, as you're aware, oncology and cardiology both have significant diagnostic requirements, and therefore we see a strong upside in the years to come from Aapulki as a strategic partnership.

Okay. Second point was that, sir, in the opening remark, you have mentioned that expanding business geographically beyond India.

It sounded that way. Any thought process on that front or any initiative that you have taken or how is it?

Yes,

yes. We have conversations going in some of the states where we are not present in the PPP.

These are some of strategic alliances across these states. I think probably by end of Q1, we should be announcing some of these alliances as well.

That is geographic expansion, right, sir?

Yes,

yes. Yeah.

Yeah. Yes.

Just last one point about RPL, sir. Can you share what would be the EBITDA that we would have generated out of RPL in the first stage of implementation and all that?

You mean the first year of RPL?

FY '26 could be a kind of practical first year for RPL. From that angle, I was saying that, okay, at what level of EBITDA that we will be operating, and what scope of expansion in the margins front in the following year with the further ramp-up?

Yeah. In the first year, the EBITDA was negative, I think marginal, largely because of we had to deploy the manpower for scaling up in these geographies, some of the logistic cost.

In this FY '26-27 is where we are looking at positive EBITDA, and trying to get it to the same levels of the consolidated EBITDA levels by the end of financial year, FY '26-27. Okay.

Then

is it fair to believe, sir, see, margin scenario trajectory for FY '27, considering the kind of hit we would have seen from RPL in the FY '26 and some marginal hit from Rajasthan, and incremental revenue-led expansion or contribution coming from the radiology new centers and Rajasthan also. On the margins front, we should see a kind of decent skill improvement on a YoY basis for FY '27?

Yes. I think directionally, we are also aspiration towards having an improvement.

As I said earlier, a combination of our existing business, the retail also, as well as the Rajasthan picking up. Quarter-wise, there might be some aberration because of revenue not being commensurate, especially on the Rajasthan front, but I think if you look at it from a year-end perspective, we believe that the EBITDA margins at least should be same and not have a dent and, of course, looking forward for an upside through these various levers that we are working on.

Hello, good afternoon. My question is on the retail side.

If I look at the touchpoint, it is coming down consistently for last two quarters, and the revenue is also lower compared to last two quarters. Whereas we have huge aspiration on that segment, what's your take there?

Sorry, could you just repeat the question?

On the retail side, the touchpoint is coming down consistently for last two quarters. Revenue is also almost flat or down compared to last quarter.

Hi, good afternoon. Yeah.

I guess you need to check around the data, and because the touchpoints and the expansion is pretty much progressive quarter-on-quarter from quarter one to quarter four. In quarter three versus quarter four, absolute addition has gone for 703 rather as in touchpoints.

However, in quarter four, revenue is little muted versus quarter three, and that's a basic part of any business. It is nothing to much look around because as it has revived back and it is on a very strong growth trajectory as well.

we answered the question. Were we audible?

Thank you for the opportunity, sir. I just wanted to ask whether the Rajasthan capital expenditure will be capitalized from Q1?

Also what will be the impact on depreciation and interest cost for FY '27, if you can quantify the depreciation and interest cost numbers outlook? Thank you.

Sure. Pooja, the capitalization will happen from Q1 onwards around almost 200-odd crores.

On the specifics with regards to the depreciation and interest, I'll ask Sujoy to come back to you separately on this.

Sir. Thank you.

Sure. Thank you.

Thank you, everyone, for joining our Q4 FY '26 earnings call. Hopefully, we were able to address all the queries.

If any questions remain unanswered, please feel free to connect with Mr. Sujoy Bose, our Company Secretary, and looking forward to interact with you in the coming quarters.

Thank you, and have a good day ahead.

Thank you. On behalf of Equirus Securities, that concludes this conference.

Thank you for joining us, and you may now disconnect your lines. Thank you.