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
