💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew by 29.32% to INR 129.16 Cr in FY25, while H1 FY26 consolidated revenue reached INR 137.49 Cr, a 23.38% YoY increase. The diagnostic segment is a primary driver, while the pharmacy business is being optimized for higher margins.

Geographic Revenue Split

The company primarily operates in North India, specifically Uttar Pradesh and Uttarakhand. Recent expansion includes new centers in Patna, Lucknow, and Ayodhya to capture rising demand in urban and semi-urban markets.

Profitability Margins

Consolidated PAT for FY25 increased by 43.78% to INR 23.52 Cr. H1 FY26 PAT was INR 15.6 Cr with a margin of 11.35%, up 180 basis points YoY due to better business mix and cost management.

EBITDA Margin

Consolidated EBITDA margin for H1 FY26 stood at 21.81%, up 312 basis points from 18.7% in the previous period. The diagnostic-specific EBITDA margin is significantly higher at 34.22%, reflecting strong core profitability.

Capital Expenditure

The company invested INR 35.80 Cr in investing activities during FY25, up from INR 15.36 Cr in FY24. This capital was used to open 10 major diagnostic centers over the last 18 months to drive volume growth.

Credit Rating & Borrowing

Credit rating was upgraded to 'Crisil BBB-/Stable' from 'Crisil BB-/Stable'. Total borrowings as of March 31, 2025, included INR 22.14 Cr in long-term and INR 11.06 Cr in short-term debt, with finance costs rising 68.8% YoY to INR 3.57 Cr.

⚙️ Operational Drivers

Raw Materials

Diagnostic reagents, chemicals for pathology (biochemistry, hematology, microbiology), and pharmacy stock-in-trade represent the primary material inputs.

Import Sources

Not specifically disclosed, though materials are sourced for NABL/NABH accredited laboratory operations across North India.

Key Suppliers

Not specifically named in the documents; however, the company manages a complex supply chain for 1,192 professionals across technical and operational functions.

Capacity Expansion

Current operations include over 10 major new centers opened in the last 18 months. Expansion is targeting a pan-India presence through a combination of owned labs and a new franchise-led model.

Raw Material Costs

Cost of materials consumed was INR 15.42 Cr in FY25 (11.9% of revenue), increasing 41.3% YoY. Purchase of stock-in-trade for pharmacy operations was INR 4.47 Cr, up 71% YoY.

Manufacturing Efficiency

Operational leverage improved as consolidated EBITDA grew 57.09% in FY25, outstripping revenue growth and indicating high efficiency in scaling existing diagnostic infrastructure.

Logistics & Distribution

Distribution is managed through a network of owned centers and a growing franchise model to reduce capital intensity while maintaining brand reach.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

Growth will be achieved through an exclusive strategic partnership with Jeena Sikho (expected to add INR 25-50 Cr annually), accelerating pan-India expansion via franchises, and increasing the volume of high-margin super-specialty tests.

Products & Services

Pathology tests (biochemistry, hematology, immunology), Radiology services (MRI, CT scans, X-rays), and Pharmacy retail sales.

Brand Portfolio

Chandan Healthcare, Chandan Pharmacy, Chandan Medical Centres, and Chandan Hospital (Group Company).

New Products/Services

Expansion into super-specialty diagnostic investigations and a new franchise-based collection model expected to contribute significantly to the 20-25% growth target.

Market Expansion

Targeting pan-India expansion beyond the core North India region, with recent entries into Patna and Ayodhya to leverage the Jeena Sikho partnership.

Market Share & Ranking

Leading provider of diagnostic and pharmacy services in North India (UP and Uttarakhand).

Strategic Alliances

Exclusive strategic partnership with Jeena Sikho Lifecare for sample collection and diagnostic services.

🌍 External Factors

Industry Trends

The industry is shifting toward organized diagnostic chains and franchise models to reach semi-urban markets. Chandan is positioning itself by moving from a 100% owned model to a hybrid franchise model to capture volume.

Competitive Landscape

Competes with national diagnostic chains. Management notes that while competitors face margin pressure in franchise/online segments, Chandan's local branding and Jeena Sikho partnership provide a volume cushion.

Competitive Moat

Moat is built on a 30-year brand legacy in North India, integrated diagnostic and pharmacy services, and high switching costs for loyal B2C customers. Sustainability is supported by NABL/NABH quality certifications.

Macro Economic Sensitivity

Highly sensitive to Indian healthcare spending trends and economic developments within the states of operation.

Consumer Behavior

Increasing consumer preference for reliable, branded diagnostic centers over unorganized local labs, supporting the company's B2C stability.

Geopolitical Risks

Primarily domestic regulatory risks, including changes in healthcare PPP (B2G) contract terms and local tax regimes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, NABL/NABH accreditation standards, and clinical establishment regulations. Management ensures compliance with Section 133 accounting standards.

Taxation Policy Impact

The company complies with Indian Income Tax regulations; FY25 Profit Before Tax stood at INR 28.17 Cr.

Legal Contingencies

No specific pending litigation values disclosed. Management confirmed that no directors were disqualified under Section 164(2) of the Companies Act as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Potential for material misstatements due to fraud or error in financial reporting (inherent limitation) and the risk of deteriorating compliance in rapidly expanding franchise locations.

Geographic Concentration Risk

High revenue concentration in Uttar Pradesh and Uttarakhand, making the company vulnerable to regional economic or regulatory shifts.

Third Party Dependencies

Increasing dependency on franchise partners and the Jeena Sikho alliance for future volume and revenue growth targets.

Technology Obsolescence Risk

High risk of technology obsolescence in radiology, requiring continuous reinvestment in MRI and CT scan hardware to remain competitive.

Credit & Counterparty Risk

Working capital-intensive operations with trade payables and receivables that require disciplined management to maintain the current ratio of 1.94.