| Operating Revenue | ₹82.26 CrQ1 FY27 Consolidated |
|---|---|
| Market Cap | ₹595.41 CrHealthcare Services |
| PE TTM | 20.85Sector PE: 58.63 |
| Day RSI | 53.07Neutral Zone |
Key highlights
- Consolidated revenue reached ₹82.26 Cr, marking a 19.62% year-on-year growth
- B2B business segment grew by 94% YoY, while B2G and B2C segments rose by 22% and 20% respectively
- Completed the divestment of a 53.56% stake in Chandan Pharmacy Limited for approximately ₹16.77 Cr
- Network expansion accelerated with 134 franchise centers added in Q1, bringing the total count to 375
- Management raised its long-term revenue growth guidance to 50% YoY for the next three years
- Diagnostic EBITDA margin reached 36.57% on a standalone basis during the quarter
Financial Performance
Chandan Healthcare Limited delivered a strong financial performance for the first quarter of FY27, characterized by significant expansion in high-margin verticals. The company registered consolidated sales of ₹82.26 crore, representing a growth of 19.62% over the previous year. Consolidated EBITDA stood at ₹20.98 crore, achieving a margin of 25.51%, which reflects an improvement of 4.6 basis points.
Net profit for the period was reported at ₹7.5 crore. The standalone diagnostic division demonstrated even higher profitability, with an EBITDA margin of 36.57%, highlighting the efficiency of the core clinical testing business as it scales across North India.
Strategic Pivot and Divestment
A central theme of the quarter was the company's decision to exit the pharmacy trading business. Management announced the divestment of its entire 53.56% stake in Chandan Pharmacy Limited to focus resources on the specialized diagnostic sector. The transaction, valued at approximately ₹16.77 crore, is intended to simplify the corporate structure and reallocate capital toward higher-return diagnostic assets.
By shedding the lower-margin pharmacy segment, the company expects to see a structural improvement in overall management attention and consolidated profitability margins, aligning with their goal of becoming a specialized diagnostic powerhouse.
Management Outlook
- Raised revenue growth guidance from 35% to 50% for the next three financial years
- Targeting a total network of 1,000 franchise centers by the end of the current financial year
- Planning the launch of a specialized genome lab in Lucknow and pet scan facilities in Kanpur and Gorakhpur
- Focusing on the 'One District One Lab' initiative to dominate the UP and Uttarakhand markets
- Expanding geographical presence with recent operational commencement in Vadodara, Gujarat
Business Overview
Established in 2003, Chandan Healthcare has evolved into a leading diagnostic provider with a robust presence in Uttar Pradesh and Uttarakhand. The business operates across 15 states with a multi-layered network of central referral labs, comprehensive diagnostic centers, and stand-alone laboratories. The company's expansion strategy relies heavily on a capital-light franchise model, which has seen rapid traction, adding over 134 centers in just one quarter.
This model allows the company to penetrate Tier 2 and Tier 3 markets efficiently, leveraging local relationships and centralized testing infrastructure to drive patient volumes in the B2C and preventive health checkup segments.
What to Watch
- Execution of the ambitious 1,000-franchise center target by year-end FY27
- Stabilization of margins following the complete exit of the pharmacy segment in September
- Operational ramp-up of the eight upcoming comprehensive diagnostic centers
- Progress of the new genome laboratory slated for launch in Lucknow within six months
- Utilization rates of high-end imaging equipment like PET scans in regional hubs
“This transaction is aligned with our strategy of sharpening our focus on the higher margin diagnostic business. It will simplify our business structure and allow greater management attention and capital to be directed towards expanding our diagnostic network.”
“The way we are expanding our business, I'm expecting more than 50% year-to-year growth for the next three years at the moment.”
| Share price | ₹243.5 |
|---|---|
| Market capitalisation | ₹595.41 Cr |
| Revenue (annual) | ₹276.39 Cr |
| Net profit (annual) | ₹28.55 Cr |
| Revenue (latest quarter) | ₹80.85 Cr+6.97% vs previous quarter |
| Net profit (latest quarter) | ₹7.50 Cr+6.86% vs previous quarter |
| P/E (TTM) | 20.85×Sector 58.63× |
| Promoter holding | 49.61%+0.06% QoQ |
| FII holding | 0.01%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
NSE filing by Chandan Healthcare Limited announcing its quarterly financial results and strategic business restructuring. Market figures from a third-party data provider.
