Thyrocare Technologies Limited reported a robust 25% year-on-year growth in consolidated revenue for the second quarter of FY27, reaching INR271 crores. The earnings call highlighted strong performance across its franchisee and partnership businesses, with the pathology business growing by 27%. The company also discussed its strategic focus on expanding its specialty diagnostics segment and the recent launch of its pregnancy test kit.
Thyrocare Technologies Limited Q2 FY27 Earnings Conference Call Highlights
Financial Performance and Growth Drivers
During the Q2 FY27 earnings conference call held on October 29, 2026, Thyrocare Technologies Limited announced strong financial results. The consolidated revenue for the quarter stood at INR271 crores, marking a significant 25% year-on-year growth. This expansion was primarily driven by robust performance in both the franchisee and partnership businesses. The company’s pathology business demonstrated accelerated growth, delivering 27% growth, attributed to sustained investments in service levels and quality, which have further strengthened its franchisee network.
Consolidated gross margin was reported at 74.2%, reflecting an improvement of over 190 basis points year-on-year, largely due to a strong 27% growth in test volume, enhancing operating efficiency. The EBITDA margin stood at 33%, with profit after tax before exceptions at INR60 crores, a 26% increase year-on-year, resulting in a PAT margin of 22%. Earnings per share (EPS) before exceptions grew by 26% to INR3.78.
Strategic Initiatives and Business Segments
The call detailed the company’s strategic direction, focusing on providing affordable, high-quality diagnostics. The franchisee business saw its highest quarterly addition in three years, with 1,180 new franchises added, bringing the total active base to over 12,911. The partnership business grew by 28% year-on-year, supported by insurance and health tech sectors.
A significant development highlighted was the launch of the Thyrocare Pregnancy Test Kit, a rapid home testing solution providing results in 5 minutes with 99% accuracy. This product is positioned as a consumer offering with a value proposition that includes a discounted Beta hCG blood test for confirmation, leveraging the distribution network of the API Group. The company is also expanding its specialty diagnostics portfolio, including reproductive genomics, NIPT, and allergy testing, aiming to build a trusted and scalable specialty diagnostics platform.
Divestment of Nuelear Healthcare Limited (NHL)
Thyrocare is proceeding with the disinvestment of its radiology business, Nuelear Healthcare Limited (NHL), for a consideration of approximately INR141 crores, comprising cash and equity. This strategic move allows the company to focus on its core pathology business, which offers higher growth, profitability, and return on capital (ROCE of 34.9% compared to NHL’s 6.95%). An impairment of INR9 crores in standalone books and INR45 crores in consolidated financials related to NHL was recorded.
Future Outlook
Management expressed confidence in sustained growth, with projections for the next financial year indicating potential for the point-of-care category to grow significantly. Revenue guidance has been revised upwards to early 20s for the current fiscal year. The company aims to maintain its focus on operational efficiency, expanding its reach, and ensuring best-in-class turnaround times, all while upholding its commitment to affordability and quality testing.
Source: BSE
