Thyrocare Technologies Ltd (NSE: THYROCARE) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Rahul Guha — CEO
Vikram Gupta — CFO
Analysts:
Preeth Zushi — Analyst
Parikshit Sabra — Analyst
Parikshit Sabra — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Thyrocare Q3 FY26 conference call hosted by Thyrocare Technologies Limited. 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Preeth Zushi from Thyrocare. Thank you. And over to you. Over to you. You may go ahead Preet.
Preeth Zushi — Analyst
Thank you. Asha Sri. A very good evening to all and thank you for joining us today for the Thyrocare earning conference call for the third quarter of FY 2026. Today we have with us Mr. Rahul Wua Fi. Are we audible? Yes you are. Please go ahead. I’m able. Yes you’re audible. Please go ahead.
operator
Hello.
Preeth Zushi — Analyst
So we can hear you. You may go ahead please. Okay. Mentioned we are audible. That’s fine. Yeah.
operator
Thank you Yashasri. Yeah, thank you Yashasri. A very good evening to all and thank you for joining us today for the Thyrocare earnings conference call for the third quarter of FY 2026. Today we have with us Mr. Rahul Bhua, MD and CEO of Thyrocare, Mr. Vikram Gupta, CFO of Thyrocare, along with other key members of senior management on this call to share the highlights of the business and financials for the quarter results. You’re not audible now. I hope you have gone through the. Results release, the quarter earnings presentation and the press release which has now been uploaded on the stock exchange website. A transcript of this call will be available in a week’s time on the company’s website. Please note that today’s discussion may be forward looking in nature and must be viewed in relation to the risk pertaining to our business. After the end of this call in case you have any further questions please feel free to reach out to investor relations team. I now hand over the call to Mr. Rahul Buha to make the opening remarks. Thank you Preet.
Good evening and welcome to all on the call. Thank you for taking out time from your busy schedules to join us this evening. Thank you for taking the time out.
Rahul Guha — CEO
From your busy schedules to join us this evening. Just a quick introduction to us on the call. My name is Rahul Bhuha and I. Am the MD and CEO of Thyrocare. And thank you for the opportunity to. Present the Q3 results for FY26. I’m joined by my colleague Vikram Gupta, our CFO Preet Joshi from our Strategy and Investor Relations team, Mr. Alok Jagnani from our board and I’m also very pleased to have two new members of our leadership team with us today. I’d like to welcome Dr. Ramesh Kinna as our Chief Operating Officer. Dr. Kina is a seasoned healthcare and diagnostics leader with over 17 years of experience in laboratory operations and quality systems bringing deep expertise in operational excellence, strategic transformation and quality frameworks. Also, I am delighted to welcome Rajdeep Panwar who has joined us as our Chief Commercial Officer.
Rajdeep is an accomplished healthcare leader with deep experience in diagnostics, having led the launch and scaling of over 200 labs across India and brings strong expertise in business expansion, P and L management and. And multi center operations. It’s great to have them both on the call today.
operator
As in all my calls, I will start with a quote from Nelson Mandela in recognition of our foray into Africa. It is in your hands to make a better world for all who live in it. We believe thyrocare can take its business model to Africa and make affordable high quality diagnostics accessible to all. Before we get into the details of the quarter, I am pleased to share that thyrocare has onboarded Madhuri Dixit as our brand ambassador. Madhuri brings unmatched trust and credibility and together we want to make routine a non negotiable part of Indian life.
You may ask, why does a B2B company require a brand ambassador? We felt given the journey we have done on quality and joining hands with an evergreen icon in our mission. This helps us communicate to all our partners the quality thyrocare stands for. This commitment to trust led patient first healthcare continues to translate into strong recognition from the ecosystem. We were recognized at the National Diagnostics Forum and awards by Voice of Healthcare with two national honors Best Diagnostic Lab Chain of the Year and Patient Centric.
Rahul Guha — CEO
Diagnostic Company of the Year. Our franchise business continues to be a. Key growth driver for thyrocare. It has now been almost three years since we implemented the pay for performance structure and that continues to lead to renewed energy and motivation within our franchise network. Supported by this new renewed energy along with strong brand equity and market demand, our franchisee base has reached its highest level ever. To further accelerate growth, we have expanded both our field and central teams enabling us to penetrate deeper into India and open high transacting stores more quickly. As of Q3 FY26 we have 10,300 active quarterly franchisees compared to 9,165 in Q3 of FY25 in the quarter our active franchisee base grew by 200 and despite low seasonality we were able to get deeper into new geographies.
Our pace of franchise expansion has picked up meaningfully in this year supported by renewed partner interest, strong brand equity and our strategic expansion into Tier 3 and beyond. To further strengthen engagement and relationships with our franchisees, we regularly conduct structured interactions. This quarter we hosted five franchisee meetings across different locations in India with healthy participation from our franchisee partners. Insights and feedback from these interactions directly inform how we strengthen processes, service delivery and quality outcomes. Quality remains our highest priority. It is a continuous journey of improvement and innovation. Last year we became India’s first and only 100% NABL accredited national laboratory chain, a prestigious milestone reflecting our commitment to.
World class diagnostics excellence. Achieving NABL accreditation across all labs was possible through robust quality management systems, advanced technology, rigorous training and proficiency testing. Given that only 2% of pathology labs in India hold this accreditation, this achievement. Underscores our leadership in redefining diagnostic standards. A few quarters back we had set a target of achieving six Sigma level quality tracking complaints per million with a goal to bring it down below 3.4. This quarter I am happy to announce that we have achieved the set benchmark by bringing the number down to 3.2 complaints per million tests down 43% year on year. To communicate our journey on quality, we regularly host advisory board meetings with a panel of esteemed doctors to gain their insights on enhancing our quality milestones. In Q3FY26 we have hosted several meetings at different locations. Doctors witness our cutting edge technologies protocols reinforcing our commitment to diagnostic excellence.
In the last few quarters we have added multiple advanced technologies including histopathology, a new HPLC platform, coagulation tests and the BioFire PCR platform. Specifically, in the last quarter we have started in house testing for allergy panels using the FADIA platform. In our commitment to ensure that all Indians have access to affordable testing, the allergy panels have been included free of cost in our highest selling ROB packages so that every Indian can test for allergic reactions and we all know how the air quality index is affecting this particular affliction. We continue to translate real world diagnostic data into actionable clinical insights.
Our fever study based on three years data from our Janch fever panels reveals that one in three fevers are more complex infections such as dengue, typhoid, malaria and influenza, reinforcing the need for timely testing and treatment. Through our comprehensive Jantj Fever profile while maintaining the highest quality standards. We continue to improve Turnaround time. During Q3FY26 we released reports within an average of 3.28 hours from sample receipt at the lab, made possible by robust processes automation and streamlined workflows. Our lab network now stands at 39 labs in India and one in Tanzania. During the quarter we commissioned two new labs, one in Dhavangare, Karnataka and another one at Mandi, Himachal Pradesh.
These additions enhance processing capacity and improve turnaround times by bringing testing closer to key demand clusters. Beyond operations, we are expanding our test menu and consumer offerings. We recently launched a 100 plus SKU menu for the FADIA platform. Our flagship brand Aarogyam continues to lead the preventive healthcare segment growing at 16% year on year complemented by Jansh, which caters to lifestyle and chronic health needs that has also grown 16% year on year and is becoming a strong pillar. Of our lifestyle offerings. Despite softer demand during the quarter due to festivals and seasonality, we delivered healthy growth across businesses reflecting the resilience of our model and strong execution across the network. Our core franchisee business remains stable supported by consistent service, quality and customer trust. During Q3FY26 we processed 49.6 million tests, a 22% year on year increase and served 4.5 million patients up 14% year on year. At a consolidated level, we delivered revenue growth of 18% year on year primarily driven by our pathology business which grew. 20% year on year. The franchisee business recorded revenue growth of 12% year on year in Q3 FY26 with the ThyroCare franchisee base continuing to deliver consistent mid teens year on year. Growth across all quarters in FY26 so far. Polo 2 reported strong year on year growth of 29% in Q3 FY26 while Wimta saw planned underperformance due to tighter credit controls. Revenue per retained franchisee has continued to improve for franchisees added post FY22 Driven by our slab based pricing model, improved quality, stronger doctor and channel partner relationships as well as expansion of the test menu. Our partnerships business performed strongly during the quarter driven by onboarding of new health tech clients and expansion of existing accounts. The segment delivered year on year growth of 39% with the API PharmEasy partnership growing by 30% year on year supported.
By our ongoing investments. The pre policy medical checkup insurance business performed well delivering 70% year on year growth driven largely due to the capabilities acquired from the Think Health acquisition. Gaining traction on the B2G side we continued execution of the TV projects in Maharashtra as planned internationally. In Tanzania, while the business remains nascent, we delivered 140% year on year revenue growth with around 250 clients onboarded. We expect the business to reach operating breakeven over the next 12 to 18 months. Thus our three pillars of growth, customer success, network expansion and menu expansion continue to be the three drivers of our consistent performance reinforcing our focus on operational excellence, franchisee growth and continuous improvement innovation to deliver long term value.
With that I will hand over to Vikram to cover the financial results.
Vikram Gupta — CFO
Thank you Rahul and a warm welcome to everyone joining us today. I am pleased to report that we delivered another quarter of strong financial performance driven by consistent revenue growth. Thiocare has consistently delivered high teen to a 20% growth over recent quarters and outperformed pathology diagnostic industry growth which is growing from mid to teen weights. However, strategic growth I continue to perform well. IOK franchisee going by mid teens partnership business growing by 39% growth internationally Sanjani has doubled the revenue the growth so this sustained performance reinforces our commitment to long term value creation. Before we discuss the financials, let me briefly touch upon our employee Stock Option plan and new Weber Grades Code Impact on the Employee Stock Option Plan as covered in our earlier calls, our parent company has expanded the API ESOP code to include higher grade senior management.
From an accounting standpoint, these ESOPs are recognized as an expense in the profit and loss account and equity contribution from the payment in the balance sheet. It is important to note that this is a non cash charge and does not impact our cash flows. We are reporting normalized EBITDA by excluding these non cash expenses. Also in the earnings call on the new Labor Codes as you are aware, several labor laws have been combined into four new labor codes. While we are assessing the recurring financial impact of these changes during the period, we have recorded a one time provision for the employee retirement benefits which has been shown under exceptional item in the profit and loss account exception item.
Also include one time cost related to capital restructured due to the bonus issuance. Now let me take you through some of the key financial highlights for the current quarter on the revenue style standard. Revenue for the quarter stands at 1 rupees 183 crores a year over year growth of 70%. This is driven by growth in both franchisee business and the partnership business including pharmacy. Consolidated revenue stands at rupees 196 crore. A robust year on year growth of 18% on margins and profitability Stand on gross margin is at 75% which is 300 basis points up due to mainly due to the REU capitalization impact.
In accordance with the NDS 116 we have capitalized the machine taken on reagent rentals and the corresponding impact has been taken in the cost of goods sold, depreciation and finance cost. Please note that there is no material impact of the same in profit and loss account for the same standard Normalized EBITDA margin is at 34% which is a growth of 31% on year on year basis consequent to the RU capitalization deputy session charge is higher versus R tier which has been reported in the Q3 finances. In our Q3 finances we have also reported the exceptional Items aggregating to approximate 4.
This includes rupees 4 crores related to the impact of new labor codes and the rest related to the issuance of bonus issue. At the consolidated level, consolidated normalized EBITDA margin is at 32% which is a growth of 26% on a year on year basis and the reported EBITDA margin has also grew by 38%. By reported PAT has seen an increase of 47%. Earning per share has been adjusted on account of the issuance of the bonus shares in the last quarter. Q3 above 26 EPS comes at rupees 1.64 which is 39% up from rupees 1.18 in the corresponding last quarter.
With that now I hand over to Rahul for the strategic updates.
Rahul Guha — CEO
Thank you Vikram. Briefly I would like to take a few minutes to recap to you our strategic direction and then I will open it up for Q and A. First I will reiterate our value proposition to the customer. We will continue to remain an affordable option to all patients with good quality and on time reports. All our efforts on our value proposition is towards ensuring low cost to the patient, assurance on quality of testing through. Our certification and engagement with doctors. We have made substantial progress on this. Which I updated in my initial comments and is reflected in the presentation. This will remain at our core and will continue to guide all that we will do. Second, our strategy. We continue to maintain our strategy of being the B2B partner of choice to all front end diagnostic services companies in India. Whether it is a small diagnostic center in a semi urban area, a pharmacy in a metro, a small nursing home, an individual doctor or a leading online. Diagnostics platform or health tech marketplace, we. Are happy to work with them to provide low cost robust testing solutions so that they can serve their patients in the most effective manner if they require phlebotomy. We are happy to mobilize our phlebotomy network of over 2,000 phlebotomists, including our network partners, to serve them better. This strategy has been working well for us with both our franchise and partnerships. Business posting strong growth. That, in a brief, is our mandate as management. Thank you so much for giving us a patient hearing. I will once again end with a quote from the Mahatma, Find purpose. The means will follow and our purpose remains to provide affordable, high quality testing to the masses. With that, we’ll open it up for Q and A.
Questions and Answers:
operator
Thank you very much, sir. We will 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 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Take our first question from the line of Parikshit Sabra from PK Day. Please go ahead.
Parikshit Sabra
Hi. Thank you for the opportunity and congratulations on your results. I had a couple of questions. The first one, I just wanted to get a feel for your B2B offering, your partnership offering. Would it be fair to say that you guys have by far a huge lead on anyone else in terms of the value proposition that you’re offering the partner, and hence the growth rate that you’re currently demonstrating. Ex API should be sustainable for a very long time. But maybe you cannot answer the second part, but at least the first part. Is anyone close to you in terms of the value proposition itself?
Rahul Guha
See, I don’t want to reveal too. Much about why we win in this. Space, but I would say two things I think. One is we are the only company with a dedicated phlebotomy fleet, you know. To service corporate partnerships. So we don’t rely on the franchisees. To service the orders. We have a dedicated fleet that services the order. That fleet is now almost 2,000 phlebotomists. Right. And because it’s a dedicated fleet, we can control the experience in terms of. On time arrival, adherence to SOPs, all. Of that at a different scale. So that’s one advantage that you know, is difficult to replicate. It’s not easy to build a 2000. Member phlebotomy fleet that easily. I think the second value proposition to our partners is our technology platform where with one single API integration, I can enable you to take diagnostic orders in. 400 cities in the country and It’s. A seamless experience from exposing the slot to booking the slot to delivering the report. So I think these two things have really made our value proposition quite strong in this segment. So there are a lot of other things we do which are, you know. Right. So as a follow up on that, of course guessing the fact that you are the cost leaders in this space also enables them to make good margin compared to anyone else. Right. That would be clearly the first proposition. Yeah, that goes without saying. Of course people can forego their profit. To get in and, you know, win, but that is not sustainable. I think the convenience and the service level adherence is what creates the stickiness. You can get in for price, but. I think it’s difficult to replicate the. Experience we deliver at the cost we deliver. Got it.
Parikshit Sabra
And the second part I wanted to understand was the recent uptick in pharmeasy’s business to you, how you know, what has caused this uptick, how sustainable is it? Because in the past of course there have been fluctuations. So can we assume now that this is on a steady state or this is not something that you are counting on?
Rahul Guha
See, we anyway don’t count on it, you know, but what I will say. Is in the health tech space, diagnostics. Is really front and center, not only with pharmezy but if you look at. Pharmeasy’S competitive set also almost everyone is focusing on diagnostics along with medicine rather than pure medicine delivery. So I would say it’s front and center for pharmeasy for sure and will. Remain a focus area and will grow faster than the medicine platform and accordingly they will invest. So I think without second guessing, I. Would say this is a good level. Of growth and should sustain. Now on your second part of the. Question. I would say if you look at the diagnostic industry, these partners are largely health tech players and they are growing, all of them are growing very, very fast. So it is not like, you know, we are gaining a very large share of wallet. It is just that we are riding the tailwinds of health tech companies doing. Well in this segment. And similarly on the insurance side, insurance players also have seen a very strong. Underlying growth of policies issued. And of course every policy comes with. A pre policy checkup and an annual health checkup. So I would say there’s a lot of tailwinds in the partnership business as well.
Parikshit Sabra
Got it. All right, perfect. Thank you. I’ll come back in the queue.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to answer queries from all participants, kindly Restrict your questions to two at a time. You may join back the queue for follow up questions. We’ll take our next question from the line of Ramadan of chequered investment. Go ahead. Hi sir, can you hear me? Yes, please go ahead. Yes. Yeah. Sir, I just. My first question is with respect to your franchisee business. One, one thing which stood out that overall your franchisee business grew by mid double digit growth with respect to Vimta was there, there was a degrowth with respect to mta. So can you comment on that? Why did that particular business degrow during the quarter? One is that. I’ll answer the next question after this. Sure. That’s a very simple thing. See in Thyrocare franchise business we operate. A prepaid model, so we don’t extend credit. In the Wimta model the credit terms. Were you know, 60 days, but in reality even longer than that. So we actually tightened the credit policy quite a bit. And that’s why you’re seeing the degrowth over there. So by when you expect this revenue from Vemta to be normalized and get normalized and start growing. I think this is the normalized level. You should see growth from here. Okay, understood sir.
Parikshit Sabra
And so my second question is I just want to understand the revenue recognization when it comes to franchisee business and partnership business. If my understanding is right, you pay the franchisee franchisee fee and you recognize the entire revenue or operated in the franchisee business. Whereas in partnership you only recognize your percentage revenue. Or correct me if I’m wrong, I just want to understand what’s the difference? No, no, that’s not correct. In our franchise business we operate a B2B model. So we have a flat rate with the franchisee. Let me elaborate this with an example. Right. Our list price for thyroid is roughly about 300 rupees. The thyroid profile. Right. In reality our franchisee discounts and sells. At about, I would say about 150 to 200. In that range we would invoice him. A fixed billing per thyroid test of. 60 rupees and we recognize the 60 rupees as our revenue. Understood. And what about the partnership? Yes, yes. In the partnership it’s effectively because we do the collection from the house, we recognize the entire hundred rupees or three hundred rupees in the case of thyroid. Right. And then we pay the commission to the part. Understood. So just a follow up on this. The 60 rupees which you get from franchise invoice to the franchise, does this include in the 150 rupees cost which they are selling or that’s like 150 plus 60 for them. No, no, it’s included in the one figure. Franchisee will collect 150 rupees from a. Patient, basically keep 90 rupees and pay 60 rupees to Thyrocare. And this is a flat rate or a percentage, this thing? No, it’s a fixed rate per test. So depending on the menu, for every one of our tests there’s a fixed rate. The rate varies depending on the category of the franchisee. So if you are a diamond category you get a X rate and then we have tears, which is diamond to bronze the amount of business that they give us. So the diamond category gets the lowest rate in the Thyrocare network. So basically you are. I request you to join back the queue please as we have participants waiting for their turn. Thank you. The next question is from Prakash Kapadia from Kapadia Financial Services. Please go ahead.
Rahul Guha
Yeah, thanks for the opportunity. Two questions from my end. After many quarters, growth has come below 20%. So from year on, is this going to be the normal sales growth trajectory? I do understand, you know, this is not a very big quarter in terms of the season but I was looking at year on year growth. That’s my first question. Given sales growth is around 18%, EBITDA margins are still expanding and they are at 29.5%. So is this right to believe that any sales growth of more than 13, 14% will continue to expand our EBITDA margins given the cost and nature of the business? Is that right? Understanding? Those are my two questions.
So I’ll just clarify one or two things. The 18% growth is a consolidated growth. Which is our pathology business plus our radiology business. Our pathology business grew by roughly about 20%. So in line with previous quarters, our radiology business is what has pulled it down to 18%. Right. So that’s one part. That being said, I have consistently been guiding that our long term growth rate will be mid teens. Right. So we have done better in this year. But you know, if you go back to the beginning of the year and. Yeah, I do remember Rahul about, you. Know, you were, you were cautious and you were, you know, hinting at low growth but every time you surprise on the positive. So just, you know, trying to understand how will that, you know, shape up. So is it fair to assume 15% is more sustainable over the long term? Is that the right way to look at the business? Yes, that is the way I’ve been saying. And if we do better, we’ll do better. But as I said, that’s there. And as you rightly pointed out, because we have done well this year. We are sitting on a high base. Right. And I was cautious about that even in the beginning of the year. Yes, yes, Q3, we were already sitting on a high base. But we, yeah, but we’ve, we’ve done. Well in Q3 also. So that’s the part with your question to operating leverage. Yes, it’s true if we don’t invest, but as I keep telling, I will. Invest to sustain the growth rate. Right. In the beginning of the call, I mentioned that I will invest heavily in specialty. We have already set up the labs. We are putting up a field force there. So some of that was, you will. See reflected in the expenses. So I think it will be difficult with EBITDA margins, you know, now touching 32 to give you even more operating. Leverage because I need to invest to sustain the growth rate. Okay, okay, okay, understood. And, and how critical.
Vikram Gupta
Prakash, I request you to join. Sure, I’ll join. Thank you. We’ll take our next question from the line of Arman from Blue Sky Fintech. Please go ahead. I’m sorry to interrupt. Can you use your handset mode, please? The audio is not clear. Hello. Please go ahead. Yes, please go ahead. Sorry, we’ve lost the connection of Arman. We’ll move on to the next question from the line of Gata Jain from Anantanath skycon. Please go ahead. Hi. Thank you so much for the opportunity and congratulations on good sets of numbers. I just needed a little bit, a little bit idea on the Tanzania numbers. What sort of volume are you looking there? And what sort of business do you think will come from there? If you could just throw a light over it. Yeah. See, the Tanzania business is very small. So I don’t think it’s relevant in. The near term to look at the Tanzania business. You know, I think this year we would have done what, three crores? We’ll do. So it’s three crores and, you know, 800 crores at this point. It will, you know, it’s doing very well, doubles every year. So that way, you know, it’s a good seedling in our strategy. But I think it’s, it’s too early to focus on Tanzania. All right. And do you spend in Africa somewhere or at the moment it’s just Tanzania? No, at the moment it is just Tanzania. We are still learning the Africa market. I think it will be foolhardy for us to rush into 4, 5 markets in Africa, we will get a good understanding, build our base in Tanzania, make sure we have got all the dynamics of the market well understood before we expand.
operator
All right, got it. Thank you so much. Best of luck. Thank you. We’ll take our next question from the line of Surya Narayan Patra from Philip Capital India. Please go ahead.
Parikshit Sabra
Yeah, thanks for the opportunity and congratulations for the great set of numbers. My first question is on the growth that we have seen in the partnership model looks really strong and the momentum anyway that is continuing. So how sustainable? So although you have been saying that is sustainable but how sustainable and what is likely to sustain this growth momentum on the partnership side for the, if you can just indicate that would be helpful.
Rahul Guha
See, it’s. Difficult to, you know, say of course this kind of growth, almost 36% is very encouraging to see and of course the value proposition to our partners is doing well but everyone is seeing this also. So I expect people to get, try. To get into this space and try to steal some of the market from us as well. I would say I will maintain what. I’ve been saying for a while now. For a long term I believe our. Franchise business will do between 12 and 15% depending on how much we push the needle and the partnerships will grow about 1.5 times that. And that’s kind of a good number to keep in your head to get to a consolidated mid teens growth rate for the company. I think beyond that it is, to use a Hindi phrase, all malai. But definitely I think, you know what is sustainable is you know, 12 to 15% for the franchise business and 0.5x that the partnerships business. Sure. Second point was on the kind of investment that you have been talking about. So I think the long discussed point about investment was that genomic things, that is one and in, in between we heard from one of the large, large corporate entering into genomic and disrupting the pricing and all that. So given that, what would be your reaction and what are the kind of invest areas of investment for you going ahead? So allergy is as I told you, a big theme which we’ve already made the investments and we are now live. So I would encourage you to book your allergy test on Thyrocare. You’ll find a price that you cannot find anywhere else. That being said on genomics we have just finally finalized the equipment platform and all of that. See, Genormics is a very large opportunity. Right. And India is at a nascent stage in that opportunity. So I think more players coming in. To expand awareness of Genorics will only. Grow the industry and there is room for multiple players in that business. So I don’t see it as a concern. I see it as actually a good thing where if a large corporate house comes in and creates a lot of awareness of generic testing the industry as a whole will benefit.
Parikshit Sabra
Okay, sure. And just couple of for this bookkeeping question sir. See in fact the depreciation this quarter looks higher and the reason for that you have highlighted the capitalization of rou. So what is the kind of quantum of the capitalization that we have done in this quarter and so far in this current financial year? And also the total capex so far that we have done? If you can just.
Rahul Guha
Sure, I’ll let Vikram take this. For the nine months we have done approximately 28 crore rupees of capex. 20 to 30 crore of capex excluding this rou capitalization. This other you capitalization would be again in the range of 20 code which we have done till nine months which basically includes the the machine’s addition for the capacity and the new apps. Thank you. I request you to join back the queue please. Yeah, I’m done. Thanks. Thank you. We’ll take a next question from the line of Abdul Kader Puranwala from ICICI Securities. Please go ahead. Yeah. Hi. Thank you for the opportunity just to follow up with the previous participant. So can you help us understand this. Entire change in your accounting policies of ROU assets? There is no change in accounting policy for the RU asset. This we were doing. We were doing away also and we are doing now also. Basically the only thing is that we have taken some machines this year which are high on number before to sustain on over capacity and the web edition which we have done those we have capitalized in the quarter. So we were so that review accounting is a like is a recurring thing which happens. In fact we were doing away also. So these machines we have capitalized so. But actually the NDS116 says that as per the NDS116 the machines which we take on a reagent render.
Reagent render things that needs to be capitalized as an asset and there is a corresponding reduction which happens in the cocksup goods sold and the depreciation charge increase in the pnl. So that is the thing which we have done. That is. But the amount has increased in this quarter. But this is. There is not a new accounting policy. This was being done also.
Preeth Zushi
Would it be possible to quantify that impact on depreciation and the cost of materials?
Rahul Guha
Yeah, because of this the cost of goods sold has Approximately reduced by Rupees 6 crore in this quarter. And that there is an increase in the depreciation charge for the similar amount.
Preeth Zushi
Understood, thank you.
operator
Take our next question from the line of Krishna Raj K. From Equity. I’m sorry sir, please go ahead.
Parikshit Sabra
Yeah, I was saying that just to clarify that there is, this is only a PNF ecosystem. There is no change in the, there is no impact on the PBT position.
operator
Thank you. We’ll take our next question from the line of Krishna Raj K. From Equity Wealth Management. Please go ahead.
Preeth Zushi
Good evening sir. Last time you had mentioned that GLP1 is a very good opportunity for diagnostics industries. I just wanted to know what would be the 3, 4 test both in value and volume which anyone who is taking under glp, anyone who is taking GLP would have to mandatory.
Rahul Guha
Yeah. So firstly, you know, I stand corrected on that one. We haven’t seen the, the uptick that we thought we would see on glp. Right. What has happened is people are taking the medicine but have not yet matured to the point where they are, how do you say, testing. Right. So I think it will take some time before we see the full, full benefit of, of the glp. Now to address your question effectively, the. Main tests are, you know, see what happens is when you take GLP it has significant your liver, kidneys, you know, your inflammation and your pancreas. Right. So the typical tests of liver function. Test, kidney function test, pancrea, which is serum lipase and serum amlase as well as the core cardiac risk markers of, you know, lipoprotein APO and eye sensitive CRP are the main tests that we have combined into a GLP1 package. Oh and sir, just a follow up because the generics of GLP1 would come and go off patent in March. So then would you see more uptake because now it is all patented and the price is a bit on the heavy side. So won’t you see more volumes in March? Yeah, see only time will tell. I was expecting a lot of people. Who are on GLP1 will test, you know, to ensure that their health is well preserved. That has not happened. So I think it will take some time for, you know, doctors to, you know. Treat obesity as well as test. The results of GLP1. So it will take a little bit time more for this to mature. In that situation we are investing in, I would say education programs to talk about the benefits of testing when you are in GLP1. But as you know that takes a. Long time to Build awareness. Okay. Okay, sir. Thank you. That’s it from the side. Thank you. Next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.
Preeth Zushi
Hi, am I audible?
operator
Yes, please go ahead.
Preeth Zushi
Yeah. Congratulations for good set of numbers. Actually I had a question on gross margin per se of the other USS. So this quarter we reported on 75 to 70,000 gross margin. So my question was going forward, is the number sustainable? Because you have. You have a corresponding impact on the depreciation. So going forward we work with trying to find this or it may come down. Because this year we had a huge addition in rou. Understood. This quarter gross margin has an upside impact of 1, 2% to 2 and a half percent because of that. Right. And. But as I said this, most of the. This is a recurring thing. So this to subject to. I think one person which may be on an incremental side this quarter that thing would be sustainable.
Rahul Guha
Yeah, it will be in the. It’s sustainable. And another thing, 75 against this. 75%. Yeah. Yes. In Goya another question was taxation was lower this quarter. If I remember using taxes from 27, 28%. But this quarter I think the tax rate around 17 to 18. So is there any specific reason or should we have a higher tax effect in Q4. This year? This quarter we have created a deferred tax asset and that is that. That is also some part of that is consequent to the this account. And that’s why that is over on a steady state. That would be the same rate which you have mentioned. Thank you. Just a last question. Looks how many samples we have processed this. Yes. I’m sorry but your voice is not very clear. Can you use your handset mode please? How many samples have we processed this quarter? How many samples have you processed this quarter? We have processed 70.7 lakh samples this quarter. 70.7 lakhs. Thank you. I’ll join back with you.
operator
Thank you. Next question is from the line of Vinod Patuparampil from Elara Capital. Please go ahead.
Parikshit Sabra
Hi, good evening. Just again a clarification on this rou. You said you capitalized some extra machines this quarter. Were they pre existing machines or new machines? Newly bought machines. Hello.
Rahul Guha
Hi. Hi. Dr. Binu, I let Vikram answer this question. So is for the new machines added during the year which includes both machines added for the capacity and the new apps which we have opened during the year. Understood. So what I don’t understand is. Yeah, please go ahead. Yeah. What I don’t understand is if you add new machines and capitalize them, the depreciation can go up. I understand. But how does cost of goods change when you add new machines as a percent of sales? So I just explained this to you. So basically what happens and this is an industry practice also let’s say if you. We. If you refer to the Nepal. So they would have also done the similar treatments. So what happens in the industry is that machine providers surprise the machine which is on a reenter sort of basis with the commitment that we will purchase the reagent from them. So what does this mean to the company that we are not paying for the upfront capex and we are getting the machine let’s say in fee and in. In return of that we are giving a commitment of the purchasing of the reagent materials from their machine providers. So. So this is also an impact of in fact over volume and the negotiation which we are able to do with the vendor, with the vendors that we are getting these machines.
Having said that this is an industry practice also and many operators are getting that. Now with regard to the accounting statement there is an India’s 116 but that prescribes that in case you are getting the machine for free. And there is, there is a commitment and there is a contract that we need to purchase the reagents from them. Then we need to capitalize this machine as an IAU assets. So. So we have capitalized these machines as an RV asset and we have created a corresponding liability. Our U liability in the pnl. This gets reduced from the cogs and that gets added to the deposition. This is a standard accounting which happens. We were also doing this earlier. But having said because these machines we have purchased which are this year hence this number you are seeing. Okay. And this 116 accounting policy was being followed even in the earlier quarters, right? Or has it changed? Yes, this accounting process. So there is no change in the accounting policy. Okay, thank you. And one last question. Thank you.
operator
I request you to join back the queue please as we have lot of participants in the queue. Yeah. Thank you. Ladies and gentlemen, in the interest of time kindly restrict your question to one at a time please. We’ll take our next question from the line of Parikshit Kabra from PK Day. Please go ahead.
Preeth Zushi
Hi. Thank you for the opportunity again. So you know, of course this is the first call I’ve attended of yours and I’m hearing that given the previous calls you’ve said that the guidance is for mid teens. But I’m not sure what I’M missing here. If the market is as large as it is and our value proposition is as strong as it is, why is mid teens the realistic and stable growth number? Why wouldn’t it be higher? What am I missing in my understanding of the market? You could help me understand better.
Rahul Guha
See, the market grows at 10%, right? 10, 11%. If you look at the peer set results also, it’s all in that organic, in that range, right? We how you expand and grow is. A direct function of how you expand your franchisee network. Right? And your franchisee network expansion is a. Direct result of the investments that you put in, right? So yes, I could for example, increase. The cost by 30% and try to grow faster. But that is fraught with risk. Right? So I would much rather invest 10. 12% of the cost and maintain the growth above market. Right? So that’s what you’re seeing there on the partnerships business. Look, it’s sitting on a high base, right? So you have to remember this business was very, very small three years ago and it’s expanded to a substantial base now. So it’s very difficult to sustain this level of growth on that base. So that being said, I have said it will grow faster than the franchisee business. And then when you compute the math, you know, you arrive at that mid teens growth. And as I said, this year we have done better than we expected. But who knows how next year will go. All right, thank you. That’s all for me.
operator
Thank you. Next question is from Varish Bangkore from GE Shipping family office. Please go ahead.
Parikshit Sabra
Hi Rahul. I wanted to ask that our franchisee edition every quarter was around about 400 to 500 franchisee net edition this quarter it has slowed down to 100 franchisee. That is question number one. Question number two is wanted to get a sense on revenue per test X.
Rahul Guha
Of Polo and Vimta for this quarter.
Preeth Zushi
Got it.
Rahul Guha
So Varij, the first thing just to correct, it’s 200 additions this quarter. Actually if you go into the history of the company, we have never added. Between Q2 and Q3. It has either gone down or remained flat. This is the first quarter where the night edition has been 200. Actually a lot of the franchisee addition. Happens in Q1 during the season. Sorry, Q2 during the season and then. Q4 during the season. Right. Where franchisees are looking to partner and you know, take benefit of Jan and Rom and all of that. Historically if you go back last three years, we have actually never expanded the. Franchisee base between Q2 and Q3. So this is the first time. The net addition is 200. So that should answer your first question on the revenue per test. It’s 36 rupees Ex Polo Vimta. Okay, thank you. I request you to join back the queue. Please follow up on that. Like the revenue purchase has gone down from 38 to 36. Yui. Yy has gone down from 36.6 to 35.9. So I mean 2% yoy it’s a little bit of, you know, during this quarter we, I won’t get into the competitive details but we discounted. Sugar tests. Quite heavily to encourage our franchisees to do camps and as a result we got a lot more of the sugar test volume than we thought and that’s why you see that happening. Thank you. Take our next question from the line of Arman from Blue sky fintech. Please go ahead. Yeah. Am I audible? Yes, please go ahead. Yeah. First of all congratulations on good set of numbers. My question is bit on a different image like on farmeasy. Is there any update or anything you could tell us about on the Pharm. EZ IPO and its overall revenue growth or top line growth for the this, for the this financial year. See this call is Thyrocare management call for thyrocare results. So you know, I don’t want to deviate the discussion on the parent the API group. What I can tell you is the. API group is performing very well. It’s back on a growth track and the losses are coming down substantially. And you can join the API earnings call. I think we host one every quarter. Where you can get into the full. Details of what’s happening. Got it, got it. Thanks. That’s all from my team. Thank you. Next question is from the line of Dhiresh from White Oak. Please go ahead. Yeah, you mentioned that franchisees cash and carry. So then the entire receivable of you know, 40 days is on the partnership business revenue. Right. So when you adjust for that then it will be like 120 days of receivable. Is it correct understanding or is there some I’m missing something? No, no. No, no. It would, it would turn out to 90 days. Basically we have a credit period of 60 to 90 days on the partnership business. This also includes some of the government business also. So and maybe in total that’s why it is looking higher. But on a partnership business, when you. Showed the breakup franchisee partnership and D2C where is government residual in partnership? In partnership. But, but that is very marginal. So if you see, if you see over, over Credit period is around 30 to 40 days at a banded level. And if we see only partnership that would be in the winds of 60 to 70 days. The max will not add up. Now if it is 30 to 40 and it is 1/3 of the business then it will be 90 to 12030. Days at how is 120. What he’s saying is this 1/3 of your business. Yeah. Right. So if your average days outstanding is 30 then if it’s 1/3 one is 0 and the other you just given the approximate numbers. But I remember the last person which he reported that bended the. The partnership credit period was 70 to 80 days only. I’m not understanding. I’ll take it from this thing offline. And this. I request you to join back the queue please. I just asked one question and two questions please. Just small questions.
Parikshit Sabra
Yes. This ROU thing, the cash charge of that last year was about 13 crores, right. The rental charge which has come below EBITDA. What will it be this year?
Rahul Guha
That that I will charge was 13 gold against this year would be around. I think at a totality level that would be 22, 23 crore. That, that 7 number could be. 13 crore last year. 22 crore this year. Right. This year. Thank you so much. Thank you. Participants are strictly requested to restrict their question to one at a time please. The next question is from the line of Lokesh Manek from Vallam Capital. Please go ahead. Yes. Hi, good evening. My question was. I’m sorry, can you use your handset mode please? Lokesh, your audio is not clear. Sure this is better now? Yes, please go ahead. Perfect. My question was that you know, since we are a B2B player and we deal in high volumes, our model was first doing capex was doing, you know, purchasing the equipment so that we could, you know, lower the cost of the consumables. So with this, you know, this new ROU entry and the new, the rental reagent model, what appears follow where we are venturing into. Is that a change in our CapEx strategy? Now going forward, if you can just throw some light on that, that is one and second is just a suggestion. Yeah, yeah. Please go ahead.
Sorry. Hello. Hello. So stay connected. There’s no, no change in the. Sorry, there’s no change location. The strategy where it makes sense to buy, we buy. Where it makes sense for a reagent. Rental model, we go with reagent. So it’s not, it’s a misnomer that 100% of our machines are bought out. In fact Our entire biochemistry is on reagent rental model. Immunoassay is bought out. So to that extent there is no. Change in the strategy. We buy where we get the best rate on reagent. If we don’t get the best rate of reagent then there is no point putting our capex. And so depending on the technology there. Are fully bought out machines as well. As reagent rental machines in our ecosystem. Sure. Just a small humble suggestion Vikram. If you can just give us pre and post India’s gross margin numbers going forward because that is what many retailers also do when they have that India’s impact on the EBITDA due to the rent expense. Maybe it will be more clearer to understand the India’s impact coming on the gross margin going forward. It’s just a suggestion. You can pick up. I’m sorry sir, you’re not audible. Disclose it in the numbers. Sorry, I’m sorry. We will appropriately disclose it in the. Number but I’m saying we will appropriately. Disclose it in the numbers we will report. Thank you so much. Thank you. We’ll take our next question from the line of Prakash Kaparia from Kapadia Financial Services. Please go ahead. Yeah Rahul, you know one follow up from my side given that you know we are trying to scale these specialty offerings in our you know, product portfolio. Any number you can share on internal sales team as of now Dr. Reach. Because I would guess you know some of these tests would you know require doctor recommendation. So any, any numbers if you can share that will be helpful. And you know what, what kind of scale can we expect or which areas we are focusing on. Right now we have Prakash, about 40. People on the field and we will expand that team.
Vikram Gupta
You know we have 80 doctors on staff as well. Right. And each of them connect with doctors in turn. Right. To explain the technologies and all of that. I don’t have handy the exact doctor reach at this point in time but I can share it at a later point in time. But the investments have been. We have 40 fields, the expansion expected. In this next financial year plus 80 doctors who work with us in each of our labs. Thank you. We’ll take our next question from the line of Naman Bagration from IIFL Capital. Please go ahead. Hello. Thanks for the opportunity. Just one question on growth and profitability. I just wanted to understand can we grow let’s say 15, 16% revenue organization over the next two to three years. And I’m sorry, hold on please. I think we’ve lost the management connection. Ladies and Gentlemen, please stay connected. Hello, sir, you’re able to hear us now, management team? Yeah. You can hear us, right? Yeah. Naman, can you please repeat your question? Sure. Just wanted to know whether we can grow, let’s say 15, 16% over the next two years on an organic basis and deliver, let’s say margin improvement from here on as well. So reported margins will be 31% or that growth will come at a cost. I have always been saying this. You know, 15, 16% from a growth rate point of view is definitely achievable. But it will come at a cost. So, you know, we don’t expect margins to dilute, but we don’t expect margins to improve. And last question on the gross margin front, I mean, should we take this 75, 76% gross margin as a new base or is just 1/4 phenomena and consequently, what would be the base for depreciation and amortization? See, I think as Vikram said, you. Know, we anticipate this to continue. So I would say plus minus 1% is the. Is where you can take this as the new normal. Right. Unless we take some price action or, you know, the dollar swings very sharply from here. But other, keeping that aside, you can take this as plus minus 1%, the new normal.
operator
Thank you. We’ll take our next question from the line of Yash Doshi from Unifi Capital. Please go ahead. Yash, can you use the handset mode please?
Parikshit Sabra
Yeah. Am I audible? Are you on your handset mode? Yeah. Am I audible? Yes, please go ahead. Yes, very much go ahead. Yes. Yeah. So on the partnership bit, if I recollect you saying that basically we collect the money of labor, Tomis collects the money and basically cancel the partner. So I just wanted to understand in this specific thing how is the credit days comes into picture because we are collecting on behalf of the partner, right? So ideally there should not be any credit days because we are recognizing the entire revenue and then we are starting with the partner. Can you just help me on this? So there are. So just to explain the business model. There are two kinds of partnerships. There are ones where it. I won’t bore you with the technicality. But there are what are called prepaid. Orders and postpaid orders, right? A postpaid order is where thyrocare collects the money. A prepaid order, best example is pharmeasy. Pharmeasy takes an order on its app. Collects the money from the patient and.
Rahul Guha
Then passes the order on to Thyrocare. And then we settle at the end of the month that many Captive platforms. Many of our partners are of that nature. Right. Where they effectively, how do you say. Collect a prepaid order from the customer. Similarly, in a insurance business, the customer. Is eligible for a free test like a pre policy medical checkup. Nobody charges you for that medical checkup. And many insurance will give you a. Free annual checkup with your policy. In that case, there is no revenue. Associated with the test. But we administer the test on the. Patient and then the insurance company reimburses us for that. Right. I would say a large part of. Our partnerships business is of this kind. Thank you. Yash, I request you to join back, please. Yeah, okay. There’s only one person left. So we can take Yash’s question and. Then go to the next question. Yes, please go ahead. Yeah, we had the last conversation that time you said that we have onboarded three of the 16 TPS. Is there any increase or. It’s at three. The influence TPS. I think with five now. So that’s where we are. So I mean in one we’ve added two new partners. So that’s broadly where we are. Thank you. Thank you. We’ll take a last question from the line of Harsh Kataria from RRR Investments. Please go ahead. Hello. Hi. My question was on the partnership side just to improve my understanding, like you. Said, that you recognize the complete revenue of the partner in our books. So is there any pricing band under. Which our partnership operates or they are. Free to set their own prices because. Around 33% is coming from the partnership. So are they free to send their own prizes or minimum pricing we provide them? It’s actually they are free to decide their own prices. So to that extent, depending on platform to platform, it varies. Our invoicing policy is linked to volume of business. So, you know, we typically have a fixed rate and then they basically charge either above or below, depending on their own commercial construct. Okay, thank you so much.
operator
Thank you, ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to Mr. Rahul Guha for closing comments. Over to you, sir.
Rahul Guha
All right, thank you everyone for a. Long detailed discussion and lots of interesting questions and insights from all the participants. This underscores our Q3 performance and we hope to continue that into the full financial year and look forward to seeing. You all in April and wish you. All a good evening. Thank you.
operator
Thank you, members of the management team on behalf of Thyrocare Technologies limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Sam.