SURAKSHA - Suraksha Diagno.

📊 NSE: SURAKSHA 🏢 Healthcare 📅 Last Updated: 12/14/2025 13:56

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 15% YoY to INR 251.28 Cr in FY25 from INR 218.52 Cr in FY24. H1 FY26 revenue reached INR 151.43 Cr, an 18.5% increase over H1 FY25 revenue of INR 127.74 Cr, driven by pathology and radiology services.

Geographic Revenue Split

Revenue is highly concentrated in Eastern India, specifically West Bengal and neighboring states, which accounts for nearly 100% of total turnover.

Profitability Margins

EBITDA margin stood at 33.8% in FY25, slightly up from 33.7% in FY24. PAT margin was 12.3% in FY25 (INR 30.98 Cr) compared to 10.6% in FY24 (INR 23.13 Cr). H1 FY26 PAT margin was 11.9% (INR 18.00 Cr).

EBITDA Margin

EBITDA margin was 33.8% in FY25. For H1 FY26, the margin was 33.7%, a decrease from 36.3% in H1 FY25 due to new center expansion costs and a INR 4 Cr revenue impact from floods.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 147.14 Cr in FY25, up from INR 135.05 Cr in FY24. Capital work-in-progress was INR 10.10 Cr as of March 31, 2025.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with a gearing of 0.03 times and an interest coverage ratio of 9.34 times in fiscal 2025. Total debt was minimal at INR 5.83 Cr.

⚙️ Operational Drivers

Raw Materials

Reagents and consumables represent the primary raw material cost, totaling INR 28.95 Cr in FY25, which is 11.6% of total revenue.

Capacity Expansion

The company is on track to add 12 to 15 centers in FY26, representing a ~30% increase in store count. Currently, 33% of centers are immature, including 15 centers less than one year old.

Raw Material Costs

Cost of materials consumed was INR 28.95 Cr in FY25, up 6.7% from INR 27.13 Cr in FY24. Procurement is managed to support the Hub-and-Spoke model.

Manufacturing Efficiency

Operating leverage is expected to improve as 33% of currently immature centers scale toward optimal utilization.

Logistics & Distribution

Distribution involves sample collection and transport from spokes to hubs; majority of sales are on a cash basis, reducing credit risk.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved by adding 12-15 new centers annually, scaling 15 existing centers that are less than one year old to reach maturity, and expanding into high-margin segments like Suraksha Genomics and prenatal care via the Fetomat acquisition.

Products & Services

Pathology tests, Radiology services (CT scans, MRI), Genomics, Molecular testing, and Prenatal care.

Brand Portfolio

Suraksha Diagnostic, Suraksha Genomics, Fetomat.

New Products/Services

Launched Suraksha Genomics in Q2 FY26 to provide advanced genetic and molecular testing services.

Market Expansion

Targeting 12-15 new centers in FY26 to deepen dominance in the Eastern India market.

Market Share & Ranking

Established market leader in Eastern India, particularly West Bengal.

Strategic Alliances

Recent acquisition of Fetomat to strengthen the Genomics and prenatal care division.

🌍 External Factors

Industry Trends

The diagnostic industry is shifting toward organized players and specialized testing like Genomics. Suraksha is positioning itself for this shift by launching a dedicated Genomics division.

Competitive Landscape

Intense competition from large pan-India players and several smaller regional players in West Bengal.

Competitive Moat

Moat is built on the Hub-and-Spoke model efficiency and deep regional brand equity in West Bengal, which are sustainable due to high entry barriers in radiology and specialized pathology.

Macro Economic Sensitivity

Sensitive to regional weather patterns (floods) and the timing of festivities which can shift demand by 3-4% in a quarter.

Consumer Behavior

Increasing consumer demand for advanced genetic testing and home collection services.

Geopolitical Risks

Low risk as a domestic service provider, though equipment imports may be subject to trade policies.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Companies Act 2013 and diagnostic standards. Auditors noted that the audit trail (edit log) facility was not enabled throughout FY25, a regulatory non-compliance.

Taxation Policy Impact

Effective tax rate was approximately 23.7% in FY25, with a total tax expense of INR 10.42 Cr on PBT of INR 43.86 Cr.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 39 of its financial statements; specific INR values for these contingencies were not provided in the snippets.