Highest Upside

In Q1FY26, Krsnaa Diagnostics (Krsnaa) reported revenue of ?193 crores, up 13.4% YoY. EBITDA improved 20.5% YoY to ?51.4 crores, resulting in a margin expansion to 26.6% in Q1FY26 vs. 25.1% in Q1FY25, showing efficiency, cost controls, and disciplined execution across PPP and retail units.

Gaining from the Fragmented Eastern Market

We met IKS’ management at I-Sec conference. IKS is focusing on continuing the traction on full-platform deals, increasing cross-selling with AQuity clients, using AI to gain operating margin leverage and increase non-linearity between revenue and headcount growth and working with hospitals.

Metropolis’ Q1FY26 result was largely in line with our expectations. Consolidation of the three recently acquired businesses led to robust revenue growth of ~23% YoY (organic growth of ~13% YoY).

Metropolis delivered a strong beat in operational performance in Q2FY26 led by renewed focus on margin improvement. Metropolis is unlikely to pursue any acquisition in the near term, until the company completes the integration of its recently acquired assets like Core Diagnostics.

*over or under performance to benchmark index Dr Lal PathLabs Ltd (DLPL) provides diagnostic tests and services globally. As of December 2024, DLPL had 280 clinical laboratories, including a national reference lab...

Vijaya Diagnostic’s (Vijaya) Q2FY26 performance was weaker than our expectations due to a slowdown in core markets of Hyderabad (+3% YoY). Pathology revenue grew at a modest pace of 5.1% YoY on a high base of last year and a slowdown in footfalls due to early festive season.