Krsnaa Diagnostics Ltd (NSE: KRSNAA) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Yash Mutha — Managing Director
Mitesh Dave — Group Chief Executive Officer
Analysts:
Surya Patra — Analyst
Bala Murali Krishna — Analyst
Niteen Dharmavat — Analyst
Tushar Raghatate — Analyst
Mohammed Patel — Analyst
Karthik Gadda — Analyst
Deepali Bansal — Analyst
Lokesh Manik — Analyst
Raghav — Analyst
Mayur Parkeria — Analyst
Vishal — Analyst
Anish Moonka — Analyst
Pratik — Analyst
Deepak Ajmera — Analyst
Abhishek Getam — Analyst
Nancy yadav — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Krishna Diagnostics Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Surya Patra from Philip Capital. Thank you. And over to you sir.
Surya Patra — Analyst
Thank you Rudra. Good day everybody. On behalf of Philip Kapital welcome you all to the Quarter 3 FY26 result conference call of Krishna Diagnostic Limited. Today with us we have Mr. Rajendra Mutha, Chairman and Whole Time Director. Mr. Yash Mutha, Managing Director Ms. Pallavi Executive Director Mr. Mitesh D Group CEO and Mr. Vivek Jain, Head Investor Relations business. So I would now hand over the line to Mr. Yasmutta for the opening remark and subsequent to which we’ll have a Q and A session. Thank you. Sir, over to you.
Yash Mutha — Managing Director
Yeah. Thank you Surya. Good afternoon everyone and thank you for joining us. At Krishna Diagnostics we have always believed. That building a meaningful healthcare institution is not about the quarter to quarter optics. It is about designing systems that endure, scale and deliver impact. Over the decades that philosophy continues to guide every decision we make. What we are building is not a conventional diagnostics company. Krishna operates a uniquely differentiated diagnostics platform that is inherently difficult to replicate. Anchored in the public private partnership framework and a radiology led model, our business. Requires upfront equipment investments that are nearly. 2.5 times higher than those of the conventional traditional pathology led diagnostic players. Much of this capital has been deliberately deployed over the last few years to build the largest span India radiology network. Creating a high entry barrier platform with durable long term competitive advantages. Radiology is one of the most capital intensive and operationally complex segments of the healthcare. It demands advanced technology, specialized clinical talent and disciplined execution. While this approach can moderate near term return ratios during periods of expansion, it also creates a mode that very few players can cross. Importantly, despite operating in a highly regulated government ecosystem and despite offering services at 50 to 70% lower prices than the prevailing market rates, Krishna has remained EBITDA and positive since inception.
This consistency reflects the resilience and discipline embedded in our model. Today our integrated diagnostic network spans 18 states and union territories with 190 CT and MRI centers, over 4,000 collection centers and around 140 pathology laboratories. To date we have served over 81 million patients across India, making KRISHNA one of the most impactful diagnostic platforms in the country. It is also worth noting that Krishna has built this platform in just over 14 years. While many of our peers have taken two to four decades to reach comparable scale, the speed at which we have executed, particularly in a capital intensive radiology and public health scale, speaks to the strength of our operating model, the governance and execution discipline.
Beyond scale, the impact is tangible. In Q3 alone, approximately 4.6 million patients accessed affordable diagnostics through our network. Early diagnostics remains one of the most powerful levers in improving outcomes and reducing healthcare costs and KRISHNA plays a foundational role in enabling this at a population scale. Quality has never been a compromise. Our platform today includes 49 NABH accredited radiology centers, 57 NABL accredited laboratories, India’s first CAP accredited pathology lab in a government facility, and the country’s first ACR recognized telerology hub. This depth of accreditation delivered at public health scale remains unmatched. Turning briefly to the quarter, Q3 is a seasonally softer for the diagnostic industry.
This year the impact was accentuated by lower seasonal volumes and temporary operation pauses undertaken to accelerate recovery of our long pending government receivables. I’m pleased to share that during this quarter we recovered over 130crores, materially strengthening our cash position. Importantly, our focused efforts on strengthening the. Cash flows are clearly bearing fruit. During Q3, we collected over 100 crores more compared to Q3 of the last year, reinforcing the increasing maturity and effectiveness of our execution and working capital discipline. Margins during the quarter were also influenced by cost absorption relating to expansion initiatives including the Rajasthan pathology rollout. I want to be clear this is a timing issue and not a structural one. Supported by long term PPP contracts, wide geographic reach, predictable revenue visibility and structurally lower customer acquisition cost. KRISHNA has built a resilient healthcare infrastructure platform. As these investments mature and operating leverages strengthen, we believe the full economic potential of this platform will increasingly come into view.
Now, stepping back to the broader context, the union budget reinforces exactly the direction India is taking in healthcare. The Ministry of Health and Family Welfare has allocated almost 1 lakh crore and the first time it has crossed this threshold. Reflecting a stronger national commitment to health care infrastructure, preventive care and. Hello? I’m audible. Hello?
operator
Are you on mute? Sir, The line for the management has been dropped. Please be patient. The line for the management has been reconnected. Please go ahead, sir. Hello.
Yash Mutha — Managing Director
Hi. My apologies. I think the line got disconnected so I’ll start the speech again for the benefit of everyone. I’m not sure. Okay, so thank you Surya Good afternoon everyone and thank you for joining us. At Krishna Diagnostics we have always believed that building a meaningful healthcare institution is not about quarter to quarter optics, it’s about designing systems that endure, scale and deliver impact over decades. That philosophy continues to guide every decision we take. What we are building is not a conventional diagnostics company. KRISHNA operates a uniquely differentiated diagnostics platform that is inherently difficult to replicate.
Anchored in a public private partnership framework and a radiology led model, our business requires upfront equipment investments that are nearly 2.5 times higher than those of the conventional traditional pathology led diagnostic players. Much of this capital has been deliberately deployed over the last few years to build the largest Pan India radiology network, creating a high entry barrier platform with durable long term competitive advantages. Radiology is one of the most capital intensive and operationally complex segments of healthcare. It demands advanced technology, specialized clinical talent and disciplined execution. While this approach can moderate near term return ratios during periods of expansion, it also creates a moat that very few players can cross.
Importantly, despite operating in a highly regulated government ecosystem and despite offering services at 50 to 70% lower prices than the prevailing market rates, Krishna has remained EBITDA and positive since inception. This consistency reflects the resilience and discipline embedded in a model. Today, our integrated diagnostics network spans 18 states and union territories with 190 CT and MRI centers, over 4,000 collection centers and 140 pathology laboratories. To date we have served over 81 million patients across India, making KRISHNA one of the most impactful diagnostic platforms in the country. It is also worth noting that Krishna has built this platform in just over 14 years.
While many of our peers have taken two to four decades to reach comparable scale. The speed at which we have executed, particularly in capital intensive radiology and public healthcare, speaks to the strength of our operating model, governance and execution discipline. Beyond scale the impact is tangible. In Q3 alone, approximately 4.6 million patients accessed affordable diagnostics through our network. Early diagnosis remains one of the most powerful levers in improving outcomes and reducing healthcare cost and KRISHNA plays a foundational role in enabling this at population scale. Quality has never been a compromise. Our platform today includes 49 NABH accredited radiology centers, 57 NEBL accredited laboratories, India’s first CAP accredited pathology lab in a government facility, and the country’s first ACR recognized teleradology hub.
This depth of accreditation delivered at public health scale remains unmatched. Turning briefly to the quarter Q3 is a seasonally softer for the diagnostic industry. This year. The impact was accentuated by lower seasonal volumes and temporary operational pauses undertaken to accelerate recovery of long pending government receivables. I am pleased to share that during the quarter we recovered over 130 crores, materially strengthening our cash position. Importantly, our focused efforts on strengthening cash flows are clearly bearing fruit. During quarter three we collected over 100 crores more compared to quarter three of the last year, reinforcing the increasing maturity and effectiveness of our execution and working capital discipline.
Margins during the quarter were also influenced by cost absorption related to expansion initiatives including the Rajasthan Pathology rollout. I want to be very clear this is a timing issue and not a structural one supported by long term PPP contracts, wide geographic reach, predicted revenue visibility and structurally lower customer acquisition cost. KRISHNA has built a resilient healthcare infrastructure platform. As these investments mature and operating leverage strengthens, we believe the full economic potential of this platform will be increasingly coming to view. Now, stepping back to the broader context, the Union budget reinforces exactly the direction India is taking in healthcare.
The Ministry of Health and Family Welfare allocation has crossed rupees one lakh crore reflecting a stronger national commitment to healthcare infrastructure, preventive care and capacity building. The focus is clearly moving beyond access alone to infrastructure and quality and diagnostics is increasingly being recognized as a foundational pillar in preventive healthcare. In this environment, the PPP model continues to remain one of the most effective mechanisms for a rapid scale up. For krishna, this is a strong validation. As India’s largest PPP diagnostics platform with deep execution capability across the states, we believe we are uniquely positioned to participate meaningfully in this multi decade expansion and not as a short cycle contractor but as a long term healthcare infrastructure partner.
In parallel, our B2C segment continues to gain traction with the retail revenue increasing 8 times year on year and touch points expanding materially, strengthening brand acceptance and adding a second engine of growth alongside ppp. We’ve also crossed an important strategic milestone with the launch of the first Apulki Healthcare Hospital in Pune, India’s first PPP based cancer and cardiac care hospital. Operating under a long term tenure, this represents a calibrated extension of our capabilities into integrated tertiary care built on the same execution discipline and infrastructure mindset that defines krishna. To conclude, KRISHNA is not a short cycle business built for near term metrics.
It’s a long term health care institution built patiently, executed responsibly and designed to compound value over decades. We remain deeply confident in our strategy, disciplined in our capital allocation and commitment to building a healthcare platform that will matter for generations to come with that I would like to now hand over to our group CEO Mr. Mitesh Dabe.
Mitesh Dave — Group Chief Executive Officer
Thank you Mr. Yash for detailed but very crisply and clearly what really Krishna stands for. Taking you and all of us here, A very good afternoon and a warm welcome to all of you. Let me now share with you all the key developments and the performance highlights for the quarter. During quarter three FY26 the revenue from the operations stood at 1812 million representing a year on year growth of approximately 4% as previously indicated and revenues from the quarter were modestly impacted by seasonality and series of festivities. But parallel to that there were certain conscious decisions for recovering long pending dues which we took a brief pause in few of our projects and it turned out very positively and has shown an impact in overall days of outstanding Moving down further, considering the margins front a slight impact mainly on account of commissioning the Rajasthan Project and absorbing the associated costs towards employees, logistics, supply chain etc.
Without realizing any revenue for quarter three. However these sectors are merely timing related. With the revenue recognition and meaningful ramp up from Rajasthan Project expected in the coming quarter as well as in the upcoming financial year, it gives us a very robust and clear growth visibility. Despite these near term headwinds, profitability remained resilient. Our EBITDA for quarter three has registered at 474 million translating into the EBITDA margin percentage of 26%. Post observing temporary costs related to the project readiness and employee related adjustment of Rajasthan Project on normalized scale, EBITDA stood at 484 million with the healthy margins of 27% underscoring the structural strength of our business model, disciplined cost management and operating leverages.
Normalized PAT for The quarter registered at 168 million with the margin stands at 9% for the nine month period. Profitability trends continue to remain strong and stable supported by margin resilience and improving utilization and the inherent scalability of our platform. Over the past year we have remained sharply focused on driving operational efficiencies across manpower deployment, asset utilization and procurement. Higher utilization in radiology, particularly in advanced modalities has improved assets productivity while supply chain optimization has reduced installation timeline drastically and minimize equipment downtime, further strengthening return matrices. Technology led automation remains a key differentiator for the company.
Our investment in centralized monitoring, automated reporting, billing systems and turnaround time optimization are delivering measurable benefits including enhanced operating efficiency, improved cash conversion cycles and superior patient experience. Detailed diagnostic continues to emerge as a strong growth engine for us. During quarter three FY26 retail revenue grew by nearly 8 times year on year and contributed approximately 8% to the overall group’s revenue contribution. In first half, our retail network has expanded to over 3,000 plus touch points and we expect this segment to scale steadily, supported by expansion across Maharashtra, Punjab, Assam and Odisha, along with the growing traction in home collection services, preventive healthcare offerings.
I would like to take a moment to address leadership update on Mr. Pawan Daga. Our Chief Financial Officer has moved on from the organization. We sincerely thank him for his valuable contribution and services and wish him continued success in his future endeavors. Further, I would like to reassure our investor stakeholders that the company has a strong experience, long standing and well benchmarked financial leadership team in place. A structured and seamless transition has happened to ensure absolute continuity across financial operations, governance standards and internal controls. We have already initiated the process of appointing a suitable successor and remain firmly committed to the highest standards of financial discipline, transparency and reporting.
As we enter our next phase of growth, our strategy remains focused and disciplined, driving scalability expansion, strengthening unit economics and deepening our footprints in the regions where access to quality diagnostic is most critical. We continue to pursue our profitable growth across both PPP and retail segments, reinforcing our leadership in integrated diagnostics. Guided by operational excellence, capital efficiency, we are building one of India’s most trusted and admired healthcare platforms delivering highest quality, affordable and diagnostic services for every citizen of India while creating a sustained long term value for all stakeholders. With that, now we can move on to our sessions for question and answers.
Yash Mutha — Managing Director
Thank you this side Mitesh thank you very much.
Questions and Answers:
operator
We’ll now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Also in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the questions to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Bala Murli Krishna from Oman.
Investment advices, please go ahead.
Bala Murali Krishna
Hi, good morning. So regarding the rpl so I think on Quadra, even though we have good growth on the year on year basis but I think the quarter on quarter numbers are little bit muted. So what could be the reason for that one and we have told that by year end will be in break even in rpl. So what is the status on that?
Mitesh Dave
Yeah Hi Good Morning Mr. Murli Mitesh this site while. Yes, what you have shared is correct that year on year it has a robust growth quarter on quarter it’s little muted. And that’s mainly because of the series of festivities and the seasonality rest. All the levers are very well in place. And despite so much so seasonality or the festivities and the scope of the operations that we currently taking over in our retail segment, we have still grown over the quarter three marginally. And considering our breakeven, yes we are in line with the quarter four where we’ll be looking for breakeven for the RPL business.
Bala Murali Krishna
Okay, good, good Matishi. And so on the front of new order winds so many, I mean maybe one and before one year till last 12 months maybe we don’t have any major water means. So what what could do we expect maybe in the Q4 or next year any tender, pipe cancer, any significant orders we are expecting and also on the revenue drop front in the Q3. So maybe it could be is it only attributed to seasonality or is there any tender is duration is completed. So could you please throw some light.
Yash Mutha
On that Mr. Murley if you can just repeat the question please.
Bala Murali Krishna
Yeah. There are not any major order wins in the past maybe 12 months other than this Rajasthan tender which is. So that’s what I’m asking. So to continue the growth phase maybe we need to have a new order wins and we have a Maharashtra radiology tender is in hand which is under implementation. But in addition to that I don’t think we have any major orders further to implement. So what is your plan in the coming maybe 12 months or to get any new orders and any order pipeline. Is there significant orders?
Yash Mutha
Yeah. In terms of the order book or PPP projects in pipeline, there are a couple of projects that we are chasing. Two things. One is we are also being selective about the PPP project that we would want to undertake. You know, given the kind of maturity and experience Krishna has and also the select considering Rajasthan as the biggest rollout that is also ongoing. So because of these two reasons we are focusing only on select tenders that you know, we believe can be successfully delivered. And therefore hopefully in the coming quarters we will be able to see results of you know, these different projects that are in pipeline.
Bala Murali Krishna
Yeah. Okay. Lastly on the upper key side, so. What is the revenue potential we’re expecting from a single hospital for as far as Krishna is concerned and also on the the status of the projects earlier we used to stay in presentation that these many centers are pending for implementation.
Yash Mutha
Yeah. So I think on you also asked on Maharashtra Project. So the Maharashtra project, it’s under implementation. You know, we’ve now received lot of clear on various sites. So hopefully by Q4 these sites will be under implementation. And the revenue should also start coming through in the subsequent quarters or in the next financial year. As regards Apulki, the apulki, considering it’s 150 bedded hospital, so we expect the revenues, mature level revenues to be in the range of around 20 odd crores which we believe it will take around between two to three years to come to a mature level.
The hospital has just operationalized. So that’s the other, you know, revenue that a long term revenue that Krishna expects to grow in the coming years. And this is one of the the other hospitals are also under construction. So they’ll also further add to our growing kitty of revenues.
Bala Murali Krishna
Hello.
operator
As there’s no response, we move to the next question. The next question is from the line of Nitin Dharmawat from Aurum Capital. Please go ahead.
Niteen Dharmavat
Yeah, thank you for the opportunity. Am I audible?
operator
Yes sir, you are.
Niteen Dharmavat
Okay, so first of all, many congratulations for this Apulki hospital project. I visited that. One of the very good facilities I’ve seen for this kind of requirement. Fantastic work over there. I have a couple of questions, so can you please elaborate this Rajasthan project status, what is the revenue guidance from this during the Q4 and during next financial year?
Yash Mutha
Yeah, first of all, thanks for the compliments. As regards Rajasthan. The Rajasthan project is under implementation and we are ferociously working to ensure that the implementation gets completed within Q4. There might be some slippages of certain centers or satellite labs in Q1. But I think in terms of revenue guidance we’ll be able to give a much but clear picture in hopefully around Q4 once the labs and everything is installed. Got it.
Niteen Dharmavat
My next question is about this receivable number. You mentioned that we got good, you know, cash flow, almost 130 crores recovered. And it’s 100 crore more than the last year, same quarter. So what is receivable status from Himachal in Karnatak? Can you elaborate on that specifically?
Yash Mutha
Yeah. So both the projects Himachal and Himachal Pradesh and Karnataka money has started flowing in. In fact Himachal also we received significant amount and that continues to flow in. And equally on the Karnataka side we’ve also received certain communication in the way of confirmations from the Karnataka authorities recently. So both the things are interaction. Therefore apart from this, you know, the collection which is around 133 crores that we’ve collected across various. Let’s say PPP projects is also in the frame. So you know, from that perspective there’s a confidence that, you know, the receivers will hopefully also come down in the coming.
Mitesh Dave
Hello.
Yash Mutha
Hello.
Niteen Dharmavat
Yeah, no, your last sentence I missed. Sorry.
Yash Mutha
Yeah, so as I said that, you know, for example in Himachal Pradesh we’ve already received around 40 crores. We also confirmations have been received from Karnataka and the rest of the projects are also we’re receiving confirmation that the payments are getting lined up. So hopefully in the coming quarters we’ll be able to correct more.
Niteen Dharmavat
My next question is what are the. New wins that we have?
operator
Sorry to interrupt you sir, but if you have a follow up question, please rejoin the queue.
Niteen Dharmavat
Okay, I’ll come back.
operator
Thank you. Our next question comes from the line of Tushar Ragatha Te from Omega Portfolio Advisors. Please go ahead.
Tushar Raghatate
Yeah, thank you for the opportunity. So I just wanted to know basically in the classification of detail. So in Q1 FY26 it came down, you know, from 90 to 34%. I am talking about B2B segmentation over there. Firstly I just wanted to know exactly what is this B2B in retail which substantially came down, you know, as we move to the forward quarters. That was my first question. And secondly, answer your marketing efforts on the retail segment. What is that currently answering the retail. What is the share of radiology and how you are trying to, you know, improve that.
Yash Mutha
Okay, if you can just repeat the question, the first part, if I understood it, you’re saying the B2B numbers have come down. Actually if you can just elaborate on that question, please.
Tushar Raghatate
So basically in the Q1FY26, the in the detail, the B2B came down to 34% from 90 from comparing to Q1FY25. If you compare that from Q1FY25 to Q1FY26 from 90% it came down to 34%. So I just want to know like exactly in terms of classification, how you did well and exactly what it is the B2B and the retail one.
Mitesh Dave
Okay, so. Hi Mitesh. Decide. First of all it’s a strategic effort. Where B2B are the ones in any business are the quick wins versus B2C is which get build up over the time. It takes its efforts and it has an own cow to follow. Right from the beginning our efforts as always towards the B2C. But as in business dynamics, B2B cannot be ignored. And hence we are driving both the parallel. But our overall endeavor is toward building up to the B2C segment more.
Tushar Raghatate
Question. Is more on like, like in terms of the. The reduction in B2B is very substantial from 90% to straight 34% which that, that thing I want to understand basically how it is like what was the reason behind that?
Yash Mutha
I think you know, we’ll take this question separately with our investor relationship because we are not able to comprehend where these values are coming from. But we’ll certainly give you an answer on this just to give you, you know and to add what Mitesh said. See from a retail perspective, our endeavors and focuses on to building a retail which is focusing on B2C primarily B2B is also in the fray, you know with the tie ups that we do with various smaller labs. But on the specific question of the numbers, I think we’ll just respond to you separately with through our head investor relationship.
Tushar Raghatate
Fair enough sir. And certainly retail whatever marketing efforts because we are the lowest cost in terms of, you know, all the service we provide. So in order to deepen your penetration, I just want to understand your efforts, your view on the marketing front of your services.
Yash Mutha
So as regards marketing, you know, if you see Krishna’s DNA has been that our marketing streams are very calculated, calibrated, we’ve not done significant marketing. We continue to carry that philosophy even from a retail expansion. But we also understand in the new age businesses, considering the Instagram kind of marketing initiatives that are being done, we would be exploring that. But with the financial discipline that we want to carry forward, that is currently what we are working towards to ensure that our overall customer acquisition cost remains the same as a philosophy as we expand into newer markets and go deeper.
I think at that point in time we’ll be able to recalibrate and maybe come with a more definitive answer to this. But from a philosophy perspective, we’d like to ensure that there’s a financial discipline on the marketing Costa.
operator
But if you have a follow up question, please rejoin the queue. Thank you. Our next question comes from the line of Mohammed Patel from Edelweiss Public Alternatives. Please go ahead.
Mohammed Patel
I hope I’m audible.
operator
Yes sir, you are. But a little louder would be yeah.
Mohammed Patel
So my first question is if I classify the revenue of Krishna into three parts. B2C Rajasthan contract and X B2CX Rajasthan, which is the base business. So I think I have fair understanding of what Rajasthan can contribute and what B2C can contribute in terms of sales in the next few years based on what has been discussed in the past conference calls. But my question is how should I think of the trajectory of Revenue of the base business, which is x b2 cx Rajasthan.
Yash Mutha
So excluding Rajasthan, if you see our base business and what we’ve been communicating has been, you know, always been that we try to achieve revenues in the higher teams is what we are aspirational and that’s what we are currently focusing. If you leave aside the seasonality factors, but on an annualized basis, that is what the number we expect to achieve.
Mohammed Patel
Okay. And if I were to break up the base business into pathology and radiology, that’s a follow up to this question. How should I think of pathology and radiology growth in the base business?
Yash Mutha
Yeah, if you see currently the spread between radiology and pathology is almost 50 50. So the contribution more or less would be in the similar trend. There are also certain, for example, radiology might have a slightly better growth in the next year considering that some of our Maharashtra projects are going live. But directionally if you combine both. And some of the pathology projects have also been implemented in the last few years. So both of them, like Assam already said, we expect both the numbers to grow in the same fashion.
Mohammed Patel
Okay, my second question is I wanted to understand how the network will be in FY28. So I want to know what should be the number of pathology labs, the number of CT, MRI and the number of retail touch points by FY28. Approximate number, ballpark number is fine.
Yash Mutha
I think on this particular question I’ll defer you to, you know, reach out to our head investor relationships. You know, they’ll be able to give you more granular number in terms of the network expansion that we plan for the next year.
Mohammed Patel
I have one more if I’m allowed.
Yash Mutha
Yeah, I can. Go ahead.
Yash Mutha
Yes, yes, you can go ahead.
Mohammed Patel
I wanted to understand, you know, what is the rationale of entering the hospital business.
Yash Mutha
So if you mean the Apulki Hospital.
Mohammed Patel
Yes.
Yash Mutha
So it’s not entering the Apulki hospital business. Basically it’s a very specialized cancer and cardiac care hospital on a similar PPP model like what Krishna has built. You know where they are setting up dedicated cancer care hospital in high density areas and providing these services at significantly competitive rates. Now if you see from the cancer, cardiac and diagnostic business has a significant share and these contracts give us almost a 60 year of visibility in terms of revenues. And therefore it’s a strategic alignment to associate with the Apulki hospital in expanding especially in the oncology and specialty kind of business.
Mohammed Patel
Okay, I have further questions. I’ll join back in the queue.
Yash Mutha
Sure.
operator
Thank you. Our next question comes from the line of Karthik Gadda from Multiple Wealth Management. Please go ahead.
Karthik Gadda
Yeah, hi. Thank you for the opportunity. Am I audible?
operator
Perfectly audible, sir.
Karthik Gadda
Yeah, thanks. Yeah, so on the radiology part. So thanks, thanks for the initial remarks. You know, you articulated it pretty well, the entire thing. Just wanted to understand what I understand about radiology. There is good risk of obsolescence in terms of the technology, the hardware. So because you articulated that, that we are looking at the long term to building and this is like a foundational phase. So how are we looking at the risk of obsolete for the hardware? Are there any steps to mitigate this? Say through software, maybe AI or something like that?
Yash Mutha
Hello?
Karthik Gadda
Yeah, hello.
Yash Mutha
Yeah, so first of all, if you see radiology per se, there is no absolute in the technology. If you see the X ray technology has remained constant and stable for so many years. Likewise a CT scan or MRI which are the core diagnostic equipments, the core technology remains the same. The life of the magnet is around 40 years. CT scan, typically the life of the equipment is anywhere between 10 to 15 years. And the core technology doesn’t change or has not been obsolete. What is changing over the years is bringing more software for concepts like 3D modeling or more clearer images.
And these are some of the value adds that have happened over the years. So fundamentally the technology doesn’t become obsolete. And therefore that’s one of the reasons why we are focusing and you know, have been focusing on radlogy as the core segment. Now in terms of AI, AI is something which is expected to bring in efficiency in terms of the reporting as well as some of the AI that are currently explored are in terms of, you know, maybe having a better image quality which eventually will result into better reporting for the radiologist. And this is how we expect, you know, the AI to come into play.
But from a technology obstances the risk is almost negligible in my opinion.
Karthik Gadda
Okay, great. That’s, that’s from my end. Thank you so much.
Yash Mutha
Thank you.
operator
Thank you. Our next question comes from the line of Deepali Banchal from Ventura Enterprises. Please go ahead.
Deepali Bansal
Good afternoon sir. My first question is regarding Maharashtra and Rajasthan. In the last call you mentioned that we were about to begin some labs and collection centers in Rajasthan. What is the status there? And in Maharashtra we saw that 10 of the MRIs were about to be completed. Have they been inaugurated? And what’s the update there?
Yash Mutha
So. Good afternoon. Deepali, on the first question for Maharashtra, for Rajasthan we have around 40 labs currently which have almost been installed and about 300 collection centers. And the Rest are in progress. So, you know, hopefully by Q4 majority of them should be done.
And by Q1 there might be some spillover for the collection centers and some satellite labs with regards to Rajasthan. So Maharashtra, the Maharashtra, the 10 MRI sites are almost, you know, getting ready. There were certain delays in getting the sites. The inauguration is also in the cards. But you know, as there were certain recent incidents because of which the inauguration has also been delayed. So hopefully in Q4 we expect some of the sites to get implemented.
Deepali Bansal
So none of the site in Maharashtra have been inaugurated.
Yash Mutha
Not yet. Not yet.
Deepali Bansal
Okay. My second question is for.
Regarding. I wanted to find out the tenure of the existing contracts. Like, are we looking at some contracts which are expiring maybe in a few quarters or maybe next year? Because the sale dip is something very concerning. That’s right,
Yash Mutha
yeah. So if you see in the terms of contract tenures, I’ll ask Vivek to respond separately to you in terms of any specific tenures that you look. But just to give you from an overall direction for Krishna, the PPP business and typically tenders will come and go. What we’ve demonstrated over the years and decades is whether tenders come and go.
We deliver continuous growth, which is the core business model of Krishna. And I would just like you to, you know, be cognizant of this, that this is how Krishna should be seen, you know, in the years to come as well.
Deepali Bansal
All right, so we don’t have any particular information regarding no contract.
Yash Mutha
Yes. No. As of now, there are no major contracts which are nearing expiry to just confirm that to you.
Deepali Bansal
All right, thank you so much.
operator
Thank you. Our next question comes from the line of Lokesh Manik from Vallum Capital. Please go ahead.
Lokesh Manik
Yes. Hi, good afternoon. To the team, a couple of bookkeeping questions. One is, if you can just clarify what is the revenue breakup for radiology and Pathology at the console level? You did address it earlier, but I was not clear whether, you know, it is only for base pathology, excluding retail. So at the console level, radio and pathology breakup would be helpful. And second is on the interest expense. What I understand is that now since you have had the collections, the interest expense should go down, but you also have entered into certain capital lease agreements which would push the interest expense up by the portion of the lease which gets classified under interest expense.
So going forward, you see the interest expense reported going down or you see it as it is where it is.
Yash Mutha
Yeah. So two parts of the question. The first part, regarding the radiology and pathology break, I think it’s almost 50. 50. The specific details. I’ll ask Vivek to give it to you. But more or less it’s in the same range with regards to the interest expense. See the interest expense has two components of course, the working capital and as you know we’ve been focusing on collecting our dues. So the working capital, the interest component towards the working capital is certainly expected and we are our endeavors is to bring it down. The finance lease that you spoke about is not a very significant number.
These are some of the few machines that we brought in from a finance lease. So that I don’t think so we’ll have a significant upward or increase the financing cost. Our effort is to have a capital discipline to ensure that the financing cost remains optimal and to the lowest possible. And that’s what all we’re working towards.
Lokesh Manik
So we should expect this to go down going forward then because working capital collection is happening.
Yash Mutha
Yes. For the current business the way you see, you know with the collections we expect the work, the financing cost to go down.
Lokesh Manik
Great. That’s it from my side. Thank you so much.
Yash Mutha
Thank you.
operator
Thank you. Our next question comes from the line of Raghav from Lindsay securities. Please go ahead. Yes sir. You are.
Raghav
Yes. Yeah. So my first question is after this 100 crore receivable that we have collected, what is the actual figure of receivables after Q3 on the receivable side?
Yash Mutha
I’ll ask Vivek to share the details with you.
Raghav
Yeah. And after this Rajasthan project starts, do we see some initial costs for ramping that up or you know we will be profitable after Q4 on that front. And what would be the debt after the whole expansion is complete?
Yash Mutha
Of course there will be certain expenses that you know which is typical nature of a ppp. It’s a front loading of the investments and therefore there will be expenses that will come in Q4 which will not be commensurate to the revenue.
We are trying our best and as I communicated in the previous quarter as well we are trying to ensure that the revenues and expenses are in line in Q4. There might be a certain impact but you know, as I said we are all working to ensure that the impact is minimum in terms of the debt for Rajasthan. We have currently as we disclosed in the previous quarters as well we have availed a certain facility from ADB which is in the final stages of completion. So I think once we get that debt raised we’ll certainly inform.
But the debt is towards the project and not on the overall debt for the company.
Raghav
Okay. Thank you.
operator
Thank you. Our next question comes from the line of Mayur from Wealth Managers India Private Limited. Please go ahead.
Mayur Parkeria
Hello, Am I audible?
Yash Mutha
Yes, yes,
operator
yes, yes.
Mayur Parkeria
Hello sir, Am I audible?
operator
Yes, sir, you are.
Mayur Parkeria
Yeah. So thank you for taking the questions and congratulations to the entire management for the Apulki Hospital. Actually that’s a great initiative on the PPP side and it was a much needed from a overall, you know, from the patient side, from the, you know, service side, from the economic side, from the society perspective. So it’s a great initiative and congratulations for such a state of the art facility which has been there. So wish you all the best as you go ahead for furthermore expansions on that side. Thank you very much. Yeah, my question was actually if we had to know, there have been many questions on the receivables and Rajasthan and Karnatak.
What I wanted to understand is if we look at the revenue perspective, has that started to get normalized run rate for those states post these recoveries or there is still some breaks which are there, which, which you know, have not got fully released because the receivables are still there. And has it impacted the Q3 growth to some extent? Had that been a bit more normalized? Is that one of the reasons apart from seasonality, which are also, which, which are, you know, taking some growth numbers lower, Is that, is there a play there?
Yash Mutha
Yes. So first of all, thank you for the compliments and you know, coming to the question on the radiology particularly, you know, whether there have been any impact because of the receivables.
Yes. On the receivable side it was a conscious call, you know, where we suspend, temporarily suspend the operations if the collections are not coming to us as they were promised. So there has been this impact on the Q3 numbers. And we do this as a, you know, more from a discipline perspective to ensure that whilst we continue to grow, the money is also realized hopefully in the coming quarters. We don’t expect to have such impact, you know, because Q4 is considered to be a good quarter in terms of collecting our receivables because there are budgetary limits that the governments have to exercise.
So we believe this impact hopefully will not be there in the coming quarters orally. From a direction perspective, the growth is still there even if the projects which have matured, especially those real estate projects which are like in the five to seven years horizon. Even there we do expect growth to come. It’s not like, you know, there’s zero growth. It’s just that this seasonal because of Q3 being a softer quarter and the pauses wherever we had taken to ensure our recoveries are collected, you see a certain impact, but it is more of, I would say more of a one off impact and not something which will be ongoing.
Mayur Parkeria
Right. That’s actually great to hear and actually for many long term investors it will be a great to understand that the model is working. We are in a position to have control over receivables because that’s a big worry for most of the investors from a long term perspective. And it’s a great thing. Growth can be a 1/4 or a 2/4 can take a back seat if that is so. But it’s a, you know, the, it’s a great reassurance of that working. So that great. Congratulations to the management again for revalidating those things and hope that focus continues.
Finally, will it be possible for you to say that, you know, give us an understanding. The Rajasthan order. Will it be fair to say that the actual. While we know pathology revenues are more in the region of nine months and 10 months, it starts to get, you know, the peaks start coming in. But given there can be some spillover, will it be fair to say that FY28 will be the right number to look at the full revenue potential of Rajasthan? Or you think from second half of FY27 we’ll start seeing the run rates being much stronger that are reaching those.
Yash Mutha
Yeah. So again, you know, thanks for the compliments on the way we manage and this is something core at Krishna where we have, you know, been maintaining for the years in terms of the discipline of recovering our dues. And Krishna is the only player which is able to do so. Coming to the question on Rajasthan, the Rajasthan revenues, as we said, we’ve been ferociously working to ensure that all the labs are up and running. We are aspiring that the full potential of the revenue should be achieved in year one itself. And that’s what we are gearing up to.
So this might not spill over to FY28, but most probably by FY20, end of FY27, we should be able to achieve the full annualized revenue that we are targeting from Rajasthan.
Mayur Parkeria
Great to hear one, one word. Also for the entire investor relations team also, they have been great in communication and helping us understand the model and getting. Thank you so much. Wish you all the best. Thank you.
operator
Thank you. Our next question comes from the line of Vishal C. From Systematics. Please go ahead.
Vishal
Hi, good afternoon. So can you kind of give a broad range as to what we should expect from the Rajasthan tender next year, FY27. In terms of the revenue numbers, a broad range.
Yash Mutha
So like we’ve mentioned, you know, Rajasthan revenue should be able to contribute approximately around 200 crores of annualized revenue. That would be at peak. But how should we look at FY27? No, next year. This is the number that we are expecting for the next year.
Vishal
Okay, okay. And in terms of the cost that would then get. That would get added. Any sense there? Like employee cost, how should that go up from current levels?
Yash Mutha
So of course the employee cost will be incremental because it’s a new project and it’s a large project with number of collection centers.
But as I said earlier, we have been trying to calibrate that the incremental cost do not hit our margins and we are trying to time it accordingly. So there are a lot of processes and people that we are getting aligned to this kind of concept, which is again new. We’ve had initial successes and we believe we’ll be able to continue this in the coming quarters so that the impact on the margins are not there. And there might be a slight impact in Q4 because that’s where we are really pushing for all the centers and labs to go live.
So Q4 might have a dent, but in the coming quarters we’ll expect the dent to start reducing. And again, we come back to the margin profile that we expect to deliver as a company as a whole.
Vishal
So you indicated that your revenue split would broadly be in the 5050 range even next year between Pathology and Radiology. And since Rajasthan is largely going to be Pathology. So does that mean you’ll add almost an equal amount on the radiology front? Almost 200 crores?
Yash Mutha
No, no. The 5050 that I spoke is as of today, you know, considering the nine months numbers, once Rajasthan triggers in and also the Maharashtra project, if it comes in, we expect overall pathology to have a higher share in the revenue, which in my opinion could be in the range of around 65 of pathology.
70 pathology and the rest of radiology.
Vishal
Right. And the cog. So in terms of the gross margins. So should we expect the gross margins to go down because pathology has a lower gross margin than Radiology?
Yash Mutha
You’re right. Ideally Pathology does have slightly lower margins compared to radiology. But as I said again, we are trying certain cost levers to ensure that on a consolidated basis we should be able to have a minimal impact on the margins and we continue to deliver the margins for Krishna as a whole.
Vishal
Got it. So overall, any guidance on margin whether FY27 will move positively from current levels or it can, you can, you would remain at current levels. Any sense there? Directionally.
Yash Mutha
I think directionally. You know as I said technically it should have an impact in the first year but we are trying to ensure that at least even if it doesn’t go upward but we’ll be able to maintain at least the same level of margins. Our effort is of course you know aspiration is to increase the margins but considering it’s a large project, we’ll try to ensure that the margins remain stable.
Vishal
Thank you. That’s all from my side.
operator
Thank you. Our next question comes from the line of Anish Monka from Asterisk Capital. Please go ahead.
Anish Moonka
Yeah, thank you so much for this opportunity. So Yash and Rajendra sir, so basically if you remove the retail business from your year over year numbers there has been a degrowth of around 5% and if I see let’s say two years out, it’s largely been flat. It’s like lower single digit growth in terms of your core business as another gentleman put it on top of that. Let’s like thinking from a more capital allocation perspective. We have invested around 700 crores over the last four and a half years. So keeping all this in mind like I’m trying to understand like these 700 crores that we have invested, the assumption was that they will start to show growth now in FY24, FY25, FY26 but that hasn’t come so so broadly what do you think is the reason? And detailed answer would be very helpful.
Thank you.
Yash Mutha
So Anish, if you see, you know whilst we have invested in these different government PPP projects the potential has first of all not been exhausted. So there’s enough potential to grow now. There have been certain, as I said, temporary bottlenecks, pauses. There have been certain interferences also in some of the projects by the government where you know, there caps were introduced in the interim because of certain government policy changes or ABA integration. So there were multiple reasons because of which the true revenue growth could not be achieved. But as I said from a business model perspective or from an overall fundamental growth perspective, there is no change.
The growth has to come and it will come in the subsequent quarters. In the interim there were certain setbacks, for example the Maharashtra even MRI project if I have to share what we started off in terms of implementing but there were delays in terms of setting up. So you will see the CAPEX being incurred but the revenue has not come in because there were delays in getting clearances on the Site compliances clearances were not received on time. So we are cognizant from a capital discipline that I’ve been speaking about. We look into all these implications when they come in.
There have been certain, like I said, temporary suspicion that we did. Also from our side, more on the PPP side of the business, this has resulted into subdued growth. If you see historically also in the initial when the project used to go live, we had been demonstrating growth which hopefully in the next year we’ll be able to be back on track and continue to have the growth momentum.
Anish Moonka
So sir, keeping all this in mind, the way things have panned out over the last three, three and a half years now with a lack of growth even after investing so much money, has. It resulted in any change in capital allocation? From that perspective, is the management change its stance or. We are still going the same route.
Yash Mutha
In terms of capital allocation, as I said, there are two things that we are also measuring. One is of course ensuring that the capital that we deploy, you know, like beforehand we have all the clearances, you know, we don’t. Typically in the PPP business there’s pressure to go and install the equipment and then some of the clearances come in later on. So we’ve been now careful to ensure that we have all the documentation in place. And what I mentioned with Rajasthan, we are following the same practice. Secondly, also from the tenders that we are also kind of now evaluating, we have been selective of these tenders, there have been tenders.
But understanding and knowing these intrinsic challenges that we know much better than anyone else, we’ve also been selective in those kind of projects. So yes, we are also calibrating our approaches or the processes as we go along. But just to let you know, fundamentally there’s no change in the business model. The business model is as strong and intact as it was before.
Anish Moonka
Thank you so much. That’s it.
operator
Thank you. Our next question comes from the line of Harish Singh from Sublab Research Ltd. Please go ahead.
Pratik
I hope I am audible. Hi, this is Pratik. Thank you for the opportunity. Sir. I am new to this company so I have a modest question. So in my limited understanding from reading about PPP so far, probably not all the hospitals are covered with PPP and it happens gradually as and when state government allocates the resources. Firstly, is that a correct understanding? If you can help me understand.
Yash Mutha
Yeah. Hi Prateek. So Pratik, in a typical PPP setup, the government identifies hospitals where either there is a lack of diagnostic facilities or either they are not Upgraded and then they identify these district hospitals after which a tender is published and we participate and then we bring in these equipments and deploy them. So these patients who are traveling to different cities or different towns to get the diagnostic services now get these services within their, you know, the district or with where they are currently staying. And this is one of the reasons why government has been pushing on PPP and it has been, you know, a key pillar for preventive, you know, healthcare as well as ensuring the diagnostics people have access to affordable diagnostics.
Tushar Raghatate
Understood. That is, that is helpful. Just to follow up on this. So for the states where we are already operational, so how much more scope you think that there’s a still to cater given the number of hospital hospitals our state has and where we will this give us scale and cost advantages as we go ahead and you know, penetrate deeper into the similar states as we go ahead with this model?
Yash Mutha
Yes. So Pratik, if you see I just to give you a quick analogy here, currently there are about, you know, 700, 730 plus districts in India and Krishna is present in only about 100 plus. So there’s almost a 6x more of, you know, capacity that we can expand. And we are not present in all the modalities. Somewhere we are in CT scan or MRI and some districts we’re in pathology. So we can even go horizontal and deeper within the particular state. Number three if you see currently, you know, we are not just restricting two districts but even municipal cooperation.
There are many places where Krishna is present. So this gives us, allows us to, you know, scale across these different geographies. And Krishna is the only company which has been able to deploy equipments across an entire state, whether it is Himachal Pradesh or Punjab. And these are the strengths with which Krishna continues to grow, continues to expand. And we’ve just scratched the surface in my opinion, you know, there’s enough opportunity both from if you consider around 140 crores of India population. So there’s enough headroom for growth as well.
Pratik
Understood. Just one clarification and then I’ll be. Out of the queue. So the places we are already present, you know, if we remove, you have probably already clarified this, but I missed this. For the places where we are already present, are we seeing organic volume growth in those hospitals? Because in my understanding, I mean probably, you know, the state infra, the medical and health infra is already, you know, overloaded and choked with you know, people arriving there in hope of treatment. So is there organic growth? If we remove the new areas and Hospitals which we are targeting in your opinion in last one, two years.
Yash Mutha
Yes, yes. So as I said, the reason why PPPs exist is because there was a significant gap in the demand supply, a demand for diagnostic services and gap where there were no infrastructure. After Krishna in and establishes the centers, two things happen. One is the immediate need is being serviced over a period of time when the awareness is being created between, you know, amongst the doctors or the patients or the population at general. They get to know that these services are available, you know, best in class centers, affordable rates, 24, 7 services. Then people start coming to these centers and therefore we have organic growth.
And Krishna is the only company which has been growing organically. If you see most of you know, other peers have grown through acquisitions, whereas our centers continue to demonstrate growth and you know, grow year on year.
Pratik
Understood, very helpful. Rest. I’ll take ahead with Vivek. Thank you. Thanks a lot.
Yash Mutha
Thank you.
operator
Thank you. Our next question comes from the line of Deepak Ajmera from Ige India. Please go ahead.
Deepak Ajmera
Yeah, hi, good afternoon. On the retail side, looking at the quarter on.
operator
Sorry to interrupt you sir, but can you speak a little louder?
Deepak Ajmera
Yes, sure. On the retail side, looking at the. Number of touchpoint added on quarter on. Quarter basis is 7% growth on the touchpoint side. So this is a new vertical. And are you satisfied with the 7% growth in the touchpoint? Thank you.
Mitesh Dave
Hi, Deepak Mitesh this side. Well, considering the market, the available potential and underserved the population, no growth is as such satisfactory on any quarter. However, we are more focusing onto the bringing into the system the network or the touch points which are more often long term basis should see a minimal to low chance going forward and should follow the same vision we carry at in Krishna diagnostic wherein we are more towards serving the patient flow at an best possible and high quality rates. So I guess these are just the quarter on quarter blips. You can expect maybe another 15, 20, 25% in the coming quarter.
So it’s not really much significant for that matter.
Yash Mutha
Yeah, and just to add, when we look at the network expansion like what Mitesh mentioned, we’ve also been selective. So we also, you know, have our learnings and then we try to deploy those learnings in the next expansion that we plan to do. The whole idea is to have a long term vision, you know, that we want to do with B2C expansions, especially the kind of pricing that you’re offering, the availability 24 by 7 that we’re offering and these are the things that we are trying to focus on.
Deepak Ajmera
Yeah, got it. Thank you.
operator
Thank you. Our next question comes from the line of Abhishek G from Alpha Invesco Research. Please go ahead.
Abhishek Getam
Yeah, thank you sir. So most of my questions are answered but just wanted to ask two bookkeeping questions. Can you please give us outstanding debt in absolute numbers Q on Q absolute receivables, Q1Q. Thank you.
Abhishek Getam
Yeah, sure. We’ll share those details offline through Vivek with you. Thank you.
operator
Thank you. Our next question comes from the line of Nancy Yadav from Allegro Capital. Please go ahead.
Nancy yadav
Hi sir. Thank you for the opportunity. Most of my questions are also answered but there was some deception in the beginning so I’m not sure if this has been covered. Just wanted to know the net debt number for the quarter end.
Yash Mutha
Yeah, hi. The net debt numbers will share offend. Vivek will share that with you, please.
Nancy yadav
Oh, all right. Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints, this would be our last question which comes from the line of Surya Patra from Philip Capital Private Limited. Please go ahead.
Surya Patra
Yeah, thank you. So my first question is on the the changes that we have in the recent period seen in respect of the CGHS rates and also the potential advantage of GST rationalization also. So whether we have seen anything of that in this quarter or anything likely to flow in out of those.
Yash Mutha
Yes. So thanks Surya. The question regarding the CGHS rates, the CGHS rates were mostly for the hospitals since we are in PPP and our rates are contractually embedded. You know, we have not seen an impact there. But for the newer tenders, since they will be aligned to the new rates, we might see, you know, an uptick there or a better rates there in terms of the gst. Yes, you know, there has been some impact for us positive side on the GST where we were able to also control our consumable cost. And you know, we hopefully see that continuing in the coming quarters as well.
Surya Patra
Okay. And so whether we you have called out anything about the Rajasthan PPP contract, what is the kind of cost that we would have seen in this quarter?
Yash Mutha
So in this quarter there has been impact with regards to the, you know, Manfred cost that we’ve deployed for Rajasthan. But as I said, you know, we’ve tried to keep it minimum. I think the Q4 there might be a slight impact of the Rajasthan project because more people are getting added in Q4, you know, with the full expansion going on. There is also the logic cost and you know, cost regarding rent and whatever but you know, hopefully I’m trying to ensure that, you know, the cost impact remains minimum. Maybe in Q4 there will be a slight dent but not significant is what I expect.
Surya Patra
Okay. And relating to the budget related proposal of creating five healthcare hubs with state governments. So is it a direct. It is in the direction of PPP contract for a comprehensive offering. Hence whether we will have any opportunity there.
Yash Mutha
Yeah. So again this is a very welcome move in terms of setting up, you know, dedicated medical hubs. We are also trying to understand but what we, you know, whatever information we’ve received so far, this is again a focus of the government on expanding healthcare access. Again focusing and you know there are multiple initiatives that they’ve taken including for example medical tourism in these hubs. So we believe this will be further enhancing and strengthening the public infrastructure in the country and therefore also reinforces that PPP model that we’ve been following and we should also get the benefit out of it.
Surya Patra
So this is to confirm that this. Is a PPP project or opportunity that is likely to flow in
Yash Mutha
as of now. Yes, as of now we understand it will be through a PPP model only.
Surya Patra
Okay. And just last one more question. See this GLP1 opportunity. The competition have already positioned themselves with their own packages about glp. Although the ramp up or the utilization or the patient footfall relating to GLP is not been seen so far. But people have positioned themselves for the upcoming opportunity. See your stance, you know, through the rpl. What are we doing there?
Yash Mutha
Surya, can you please repeat the question?
Surya Patra
The GLP1 related test offering. So people have, the competition have already created their own packages relating to the glp, the weight loss drug application. And so anything on that front that we have done or are we targeting that as in kind of opportunity?
Mitesh Dave
Yeah. Hi Mitesh. This side. Well, while if you’ll see everybody is playing in the same area by one or other way kind of offering, we have gone a two or three step beyond wherein we are adding up specially illness and making it to the wellness related be it is obesity, be it is a cancer care bd, any of the gastro care towards it. And we are also embedding further more value added services to it. Currently we have close to 100 plus such specialized packages to move into the wellness areas. However we are further adding it to it by multiple more value added services which are kind of a not currently or I should say that are the gaps in the market as of now.
Surya Patra
Okay, just one last point. See in fact you mentioned that. Okay, there was some seasonality impact in this quarter, whether it is largely to do with the pathology or radiology.
Mitesh Dave
So while we talk about the seasonality, it is mainly. Mainly to go with the pathology. But however, when the certain storms of the cyclone hits any of the state, it impacts both the modalities in an equal proportion.
Surya Patra
Okay. Okay. Sure. Yeah. So since. Since this is the last question. So I thank you all for your participation and thanks the management of Krishna Diagnostic for giving this opportunity to us. Thank you, sir. Thanks a lot.
Yash Mutha
Sure. Thank you so much, Surya. And thank you everyone for joining our Q3 FY26 earnings call. Hopefully we were able to address all the queries. If any questions remain unanswered, please feel free to connect with our investor relationships team headed by Mr. Vivek Jain and looking forward to interact with you in the coming quarters. Thank you. Have a good day ahead.
operator
Thank you. On behalf of Philip Capital Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.