VIRINCHI - Virinchi

📊 NSE: VIRINCHI 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 15:10

💰 Financial Performance

Revenue Growth by Segment

SaaS business revenue grew 4.4% YoY to INR 133.37 Cr in FY25 from INR 127.69 Cr in FY24. Healthcare segment revenue declined 25% in FY23 to INR 136.16 Cr due to lower post-Covid IP flow and doctor attrition.

Geographic Revenue Split

IT segment revenues are 100% export-oriented, catering exclusively to the North American market.

Profitability Margins

Operating profitability declined to ~32% in 9MFY2025 from ~36% in 9MFY2024. PAT for FY25 stood at INR 0.48 Cr, a significant decline from INR 13.48 Cr in FY24.

EBITDA Margin

EBITDA for FY25 was INR 96.39 Cr, representing a 15.3% decline from INR 113.88 Cr in FY24.

Capital Expenditure

The group has expansion plans in the healthcare segment including tertiary care hospitals in multiple metros; however, specific INR Cr values for future capex are not disclosed in available documents.

Credit Rating & Borrowing

The group maintains a moderate financial risk profile with an interest coverage ratio of 2.65 times and a Debt to EBITDA of 2.90 times as of March 31, 2024.

⚙️ Operational Drivers

Raw Materials

Key operational inputs include medical consumables and pharmaceuticals for healthcare (estimated 20-30% of hospital costs) and cloud hosting/IT infrastructure for SaaS operations.

Capacity Expansion

Current healthcare capacity is 600 beds at Hyderabad. Planned expansion includes tertiary care hospitals in Metro 1, 2, 3, and 5 locations.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, healthcare margins are susceptible to the rising costs of medical supplies and specialized talent.

Manufacturing Efficiency

Healthcare efficiency is measured by IP flow and bed occupancy; revenue declined in FY23 due to lower IP flow post-Covid.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth is driven by a 'Bundling and Unbundling' strategy across SaaS, Data Centers, and Healthcare. Key initiatives include the launch of the V23 Healthcare Aggregator app and expanding tertiary care hospital capacity in major metros.

Products & Services

Q-Fund (SaaS for fintech), Tertiary Care Hospital services, V23 Healthcare App, and IDC Infrastructure services.

Brand Portfolio

Virinchi Hospitals, Q-Fund, V23 Medical Solutions.

New Products/Services

V23 Healthcare Aggregator app targets reaching 100 million families in 10 years.

Market Expansion

Targeting expansion into 5 major Metros for tertiary healthcare services.

Strategic Alliances

The group utilizes inorganic acquisitions as part of its vertical growth strategy.

🌍 External Factors

Industry Trends

The healthcare industry is shifting toward digital aggregation (V23 app) and tertiary care, while the IT sector is evolving toward specialized fintech SaaS like BNPL processing.

Competitive Landscape

Operates in a highly competitive healthcare sector with significant reputational risks and a crowded North American IT services market.

Competitive Moat

Sustainable moat derived from a 30-year track record in IT and the niche dominance of the Q-Fund product in the North American subprime lending market.