Krsnaa Diagnostics Limited (KRSNAA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Q2, an F1-FY27 earning conference call of Krishna Diagnostic. As a reminder, all participants 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 conference is being recorded. I now hand the conference over to Mishruti from Stella Investor Relations. Thank you, and over to you, Mishruti.

Thank you. Good afternoon, everyone, and thank you for joining us today for the Q2 and H1 FY27 earnings course. We have with us the Senior Management Team of Trisna Diagnostics Limited, represented by Mr. Rajendra Motha, Chairman and Whole Time Director, Mr. Yash Motha, Managing Director, Mr. Mitesh Dave, Group Chief Executive Officer, Mr. Chandra Prakash, Interim Chief Financial Officer, and Mr. Tujai Vos, Head Secretarial Legal and Compliance. The management will be sharing the key operating and financial highlights for the quarter and half-year ended September 30, 2026, followed by a question-and-answer session. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risk and uncertainty. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. Documents relating to the company's financial performance, including the investor presentation, have been uploaded on the stock exchanges and the company's website. Trust you have been able to go through the sale. With this, I now hand over the call to Mr. Yash. Thank you, and over to you, sir.

Thank you, Shruti. Good afternoon, everyone, and thank you for joining us today. I would like to begin with an important milestone in Krishna's journey. For the first time, Krishna Diagnostics has crossed 500 crores in revenue in the last six months, achieving Rs. 507 crores in H1 FY27. Despite the natural completion of certain contracts, Krishna has delivered an impressive 27% year-on-year growth. Had some of these contracts continued, our yield growth would have been around 37%. This demonstrates the strength of our execution, and more importantly, our ability to consistently create new growth opportunities that more than compensate for contracts completing their tenure. For me, this milestone is not simply about crossing a financial number. It reflects the journey we have undertaken, the business we have built, and the conviction with which we continue to move forward. Since our listing in 2021, in the last five years, Krishna has grown continuously, expanded its presence, and strengthened its position in India's diagnostic sector. And we have achieved this despite the natural life cycle of our business wherein certain government contracts complete their tenure, projects transition, and new opportunities emerge. We have always believed that individual tenders do not define Krishna's growth. What defines us is our ability to continue growth beyond the life cycle of any single contract. Contracts will commence, mature, and eventually conclude and new opportunities will emerge. That is the nature of our PPP business. But the infrastructure that we have built, the experience we have gained, the technology we have developed, and the trust we have earned do not disappear. We have been among the pioneers in successfully scaling diagnostic services through the public-private partnership model in India. We've established statewide diagnostic networks within government hospitals, including in some of the remotest parts of the country, where operating healthcare infrastructure is challenging, and access to specialized diagnostics has traditionally been limited. And we have done this while offering services at substantially affordable prices, which are significantly lower than the prevailing market rates. Think about this, what it means. We are making advanced diagnostic services available to the patients who might otherwise have to travel long distances, incur significantly lower than prevailing market rates, sorry, incur significantly out-of-pocket expenses, or delay essential investigations. We are bringing together three things that are often difficult to achieve simultaneously, accessibility, affordability, and internationally benchmarked quality. I believe very few companies in India have built such an integrated platform at our scale. That is our differentiation, and that is what gives me confidence in Krishna's long-term prospects. Moving on, as I mentioned in our previous earnings call, the implementation of large projects, particularly Rajasthan, could lead to some moderation in our EBITDA margins. However, I'm pleased to mention that while we have seen this moderation, Encouraged by the operating efficiencies that our teams have achieved, we have helped contain the impact even as the revenue base has expanded significantly. During the first half alone, we have generated livelihood opportunities for approximately 5,000 local people to support our expanding operations, particularly in Rajasthan. This naturally had an impact on our operating costs and our margins as the newly established networks continue to ramp up. What is encouraging is that despite this significant expansion in manpower and operations, we have been able to maintain healthy beta margins through better resource utilization, cost discipline, and operational efficiencies across our existing business. As the patient volume increases and newer projects mature, we expect to derive greater operating leverage from this expanded network. Our focus remains on improving utilization, controlling cost, and generating better returns for the infrastructure we have already established. Mitesh, our group CEO, will elaborate on our operating performance and retail businesses, while Sundar Prakash, our interim CFO, will take you through the financial results in greater detail. I would also like to address an important area that has been a subject of discussion with our investors, our receibles. Our receibles have increased to approximately 470 crores as of September 30th. Primarily reflecting the expansion in our business, as well as attributable to certain delays in fund allocation and payment disbursements from certain government authorities. We recognize that the connection cycle has extended, and improving it remains one of our highest management priorities. However, I would also like to share an important development. Based on our ongoing discussions and communications with respective authorities, with various state governments, we currently have visibility on potential collections of around 200 crores during Q3. Our senior management teams continue to engage directly with the relevant authorities, and we are closely monitoring collections across all major projects. There is also an important shift in the business mix that I would like the investors and the community to appreciate. Our strategic focus on increasing cash-based revenues is already delivering encouraging results, with a steadily rising cash contribution to our overall business. This reflects a deliberate management strategy driven by expansion of our retail operations, as well as increasing focus on our cash-based PPP projects. By the end of FY27, we expect our cash-based revenues to contribute to almost 40 to 45 percent of the overall revenue mix, aggregating to approximately 400 crores per year. Further, strengthening cash flows and working capital efficiency. Continuing this strategy, we are actively pursuing additional cash PPP opportunities with some tensors currently in pipeline. We look forward to sharing further developments as these tender processes conclude and awards are finalized. We are therefore not only growing our business but progressively strengthening the cash-generating characteristics of that growth. There is an additional development that I would like to highlight. As promoters, we have always approached Krishna with a long-term perspective. We understand the accomplishments ahead, the investments required, and the responsibilities that come with building a healthcare platform of this scale. And when we look at our existing business, the projects and the implementation, our pipeline of opportunities, and the direction in which the diagnostic industry is evolving, our conviction in Krishna's long-term potential remains strong. It is with this conviction that it is reflected in the recent allotment of convertible warrants to our promoter group, representing a potential investment of approximately 92 crores. Of this, this 23 crores has already been contributed with the balance table upon conversion of the warrants. I consider this as an important expression of our confidence in the business we have built and the opportunities that we see ahead. As promoters, we continue to back our long-term vision with our own capital. Beyond diagnostics, we also see meaningful opportunities in the broader healthcare ecosystem for a strategic association with Apulki Healthcare. I am pleased to share that Apulki has commenced operations in its hospital in Pune, marking an important milestone in its journey, as well as progress its hospital PPP initiatives across Borevili, PCMC, KDMC, and the Chambrugh Govundi region of Mumbai. Together, these projects represent a hospital platform of approximately 2,000 beds. For Krishna, our core focus remains diagnostics, but at the same time, we believe our association with healthcare infrastructure platforms, like Apulki, can create opportunities for greater integration, patient access, and long-term value creation. Looking ahead. As I look at Krishna today, I see a company entering an exciting new phase of growth, our established network continues to grow, newer projects are gaining momentum, and opportunities in advanced diagnostics, specialized diagnostics, cash-based PPPs, retail, and our association with Apulke are opening new avenues for the future. What gives me confidence is that not any single project, but the strength of the platform we have built and our ability to grow beyond individual contracts and the exchanging market conditions. For our shareholders, our focus is clear to translate a growing scale into stronger cash flows, improved returns on capital, and sustainable long-term value creation. With that, I now hand over to Mitesh to take you through the business developments. Go to you, Mitesh.

Thank you, Mr. Yash. A very warm good afternoon to everyone. I would like to take you all through the key operational developments and our priorities for the coming quarters. Starting with our PPP and institutional business, Krista has built an integrated diagnostic network across 19 states and union territories. As of quarter to F527, our network comprises 259 pathology laboratories, 196 CT and MRI centers, and over 8,400-plus patient touch points. Our network now spans over 334 districts across the country. With approximately 75% of our centers covering rural areas of India. This reflects the important role we play in extending access to quality diagnostics beyond major urban centers, particularly in underserved and remote geographies. With a strong infrastructure based in place, our focus is now shifting towards improving utilization, increasing patient volumes, And strengthening operational efficiencies across the network. Over the coming quarters, we will focus on stabilizing newly operationalized projects, improving the productivity of existing centers, and ensuring consistent service quality as volume scales up. Moving to radiology. As of quarter to FY27, our 196 CT and MRI centers were supported by a network of over 350 radiologists, And NABH accredited teleradiology capabilities for X-ray CT MRI. We will continue to focus on improving center utilization, reporting quality, and turnaround times. Quality remains central to our operations. As of quarter to FY27, we had 57 NABH accredited pathology labs and 75 NABH accredited radiology centers. We remain committed to maintaining consistent quality standards across our network. Talking about retail, I am pleased to share that momentum of building network, revenue generation from network, and integrated diagnostic services through the unique initiatives has helped RPL to register quarter-on-quarter strong and robust growth momentum. The unique advantage and key operating leverage The goal is that we can utilize our existing laboratories, pathologists, radiologists, logistics, and technology to expand our reach directly to the consumer without having to build the entire infrastructure from scratch. During Q2, April 27, our estimated revenue of around 23.5 crores, registering year-on-year growth of approximately 35 percent. Patient volume has increased by 45%, while test volumes grew by 48%. Retail has approximately 9% of overall growth revenue. During the quarter, we continued centering our consumer engagement through the wellness camps, digital marketing, and improved center branding activities, and further engaged 10,000 clients through conferences, webinars, meetings during quarter to FY27. And which is helping us in stellar and consistent growth quarter-on-quarter. We are also expanding our preventive health care and specialized test offering across areas such as cardiac care, oncology, metabolic health, and obesity. Going forward, our focus will be on widening our partner network, improving patient experience, building stronger doctor relationships, and increasing awareness of our retail services. While increasing retail's contribution to our overall business. Beyond our existing portfolio, our entry into specialized PET CT diagnostics through the PPP route is an important milestone and step towards expanding our capabilities in specialized diagnostics. We are also leveraging digital platforms, data analytics, and automation to improve operational coordination and enhance the overall patient experience. To summarize, our priorities for the coming quarters are to improve utilization across our PPP network, stabilize and scale new projects, and expand our specialized diagnostic capabilities, while maintaining high standards of quality and operational efficiency. With that, I would now request our interim CFO, Mr. Chandra Prakash, to take you through the financial performance of quarter 2 and H1 F527.

Thank you, Mr. Mitesh, and good afternoon, everyone. I will now take you through the financial performance of the company for Q2 and H1FY27, respectively. Starting with our consolidated Q2FY27 performance, Revenue from operations stood at Rs. 271 crore, compared with Rs. 206 crore in Q2 FY26, registering a year-on-year growth of 32%. This is our highest ever quarterly revenue, which reflects the contribution from newly operationalized projects, continued growth in our existing business, and expanding retail network. EBITDA before CSR and ESOP expenses stood at 72 crore, compared with 60 crore last year, registering growth of approximately 20%. EBITDA margin stood at 27%, compared with 29% in Q2 FY26. After CSR and ESOP expenses, EBITDA stood at 71 crore, with a margin of approximately 26%. Profit after tax stood at 25 crore compared with 24 crore in corresponding quarter, registering a growth of approximately 3%. The path margin stood at 9%. While revenue and EBITDA have grown, profitability is impacted temporarily due to upfront operating costs associated with recently implemented projects, along with higher depreciation and finance costs. As these projects mature and utilization improves, we expect to derive better operating leverage from the infrastructure created. Now coming to H1FY27, revenue from operations stood at 507 crore compared with 399 crore in H1FY26, deflecting a growth of approximately 27%. Our growth is increasingly being driven by a multiple business segment, reducing our dependence on any single project and providing a more diversified and sustainable growth base. EBITDA before CSR and ESO expenses stood at 131 crore compared with 113 crore last year, registering a growth of approximately 16%. The EBITDA margin for H1 26-27 stood at 26% compared with 28% of last year. Pat for the first half stood at 41 crore compared with 45 crore in corresponding year last year, with a pat margin of approximately 8%. The moderation in profitability was preliminary due to upfront operating costs, higher depreciation, and finance costs associated with our expanded network. To conclude, H1FY27 reflects healthy revenue growth and an expansion in our operating scale. Our focus going forward will be on improving asset utilization, maintaining financial discipline, managing working capital, and translating our infrastructure investment into stronger profitability and cash generation. We thank our investors and analysts for their continued confidence and support. With that, I will hand over to the moderator to open the floor for question and answer. Thank you.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press stop and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press stop and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, please restrict yourself to two questions. So the first question comes from the line of Dhwan El Desai from Turtle Capital. Please go ahead.

Hi, good afternoon, everyone. So my first question is, you know, if you can call out the Rajasthan revenue for the quarter and also in terms of operating cost and appreciation, have we kind of taken the entire thing now, you know, is passing through PNN or is there more to come going forward? And are we on course to do 250 crore at least on a 100 basis from Rajasthan by Q4?

There were three questions if I understood. First question was with regards to Rajasthan revenues. So, Rajasthan is in the ramp of pace in terms of, you know, the specific project revenues. We'll share those details offline. What was the second question on depreciation and normatization, please, if you can repeat that?

So, I think we were kind of going through a cost-based setup for Rajatkan's entire operation. So, is that already kind of popping through P&L or is there any additional operating costs which is likely to come? And is also complete depreciation kind of part of the P&L today?

Yeah, so I think on the cost base, majority cost has already come through in the P&A. What will be there is only to an extent the incremental cost for certain manpower and consumables as the revenue ramp-up happens. As regards depreciation, I think majority of the depreciation has already come into the books. There's some, you know, since some of the sites are yet to be completed in terms of the lab deployments and the collection centers, there's been additional depreciation. But again, as I said, and I've been mentioning previously as well, we're trying to time both the revenue ramp-up and the expenses to go in hand-in-hand. So there's no, you know, kind of a major debt on the P&L or the margins in the coming quarters as well.

So, this 27% margin that we did, the 2% date that we saw, is it safe to assume that from here on, there will be uptick in margins since the revenue will ramp up and cost will not proportionately ramp up? Is that a fair way to look at it?

Yes, yes. We are also looking forward to have an uptick in the margins going forward as well, and we'll try to maintain that position. And 250 crore is a question that is asked. Are we in force to do that number? So we were expecting around 250 or crore from Rajasthan, and then maybe higher also if everything plays out according to plan. So, we are honored to be satisfied. Yeah, no, no, on an analyst basis, Rajasthan has the potential to deliver those numbers, and we are working towards it.

Will it likely to happen next year, or by Q4 of this year, we will get that 60 crore kind of run rate, any sense on that?

Okay. So if you see, we've started the implementing of Rajasthan in this year. Most of the revenue started coming from Q1. So we see that number coming in the next year, but we'll try to achieve as much as possible during this year as well. But on an analyst basis, majority, you know, the number that we said will come in the full financial aid for the next year.

Okay. And on the receivables, I think, you know, you talked about that there is already 200 crores kind of visibility. And I think we are at 470 odd crores in September. So, and we have been kind of trying to reduce the receivable date for a long period of time. For some reason or other, I think, you know, that number remains elevated. So, what's the confidence level in this 200-odd crores? Because our balance sheet really looks stressed. It's not for the payable days, which has increased. So, you know, if you can give some more color to, you know, the possibility.

Yeah, in terms of the receibles, since we, you know, in the PPP business, as I said, if you take our receibles and reduce, first of all, the impact of Rajasthan, because Rajasthan has started new, so the billing process, which is a very standard feature of any PPP model, the invoicing and the payment process take some time. If you take away the Rajasthan, then the balance residual receivables are primarily which are overdue for a couple of states, not the entire model. All other states, including Assam, Odisha, for example, are paying on time. There are certain states like Maharashtra, Karnataka, and Himachal Pradesh, which we have mentioned. There are certain delays. Now, the amount that I spoke about in terms of confidence is because these are some of the confirmations we have seen on ground, You know, coming from the government quarters directly, where some of the payments were supposed to hit our accounts even in the last couple of weeks, but due to some delays. We are working, and as I said, the management's full priority is on recovering our deals, and we see this, you know, money to be collected in the Q3 with a very strong conviction and confidence based on certain confirmations and assurances that we received from various authorities. I think in this last, I think, you know, while these collections in Q3 historically have been, If you see even the trend, they are a bit on a higher side, but we are pushing the governments to see that our money gets collected by Q3.

I have more questions, but I will come back in.

Thank you. Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question comes from the line of Surya Narayan Patra from Philip Capital, India's Private Limited. Please go ahead.

My first question is on the test form itself. We are seeing, obviously, on a YY basis, there is a kind of strong growth. Similarly, on a sequential basis, also, there is almost near doubling growth that we are seeing. And as a result of which, the revenue for test is also dropping like anything, more than 30% kind of sequential drop. See what is driving this volume number and as a result of which the revenue per test is also paid off and getting dragged.

So, revenue per test, as such, you can see the way volumes are going, and it's mainly, or it's one of the main reasons is to order Rajasthan projects getting operationalized.

Right.

And certain radiology projects which are in the pipeline and are in the ramping up phase. So it's a momentarily, there's nothing much to do around. As and when the radiology projects will start getting into the stabilized state and Rajasthan projects getting into the little maturity phase, the revenue per test will start increasing furthermore.

Okay, but, okay, still I'm there. Not able to kind of comprehend. In fact, the kind of volume growth that we have in Rajasthan is yet to kind of see a full ramp up. And so hence the volume impact would not have possibly come in. So then sequential near doubling growth, whether it is coming from some ramp up in some other TPP contract or what is it? And my second point relating to this is that even for the revenue per test, if you consider the Rajasthan project revenue per test is significantly low and hence our blended revenue per test is getting dragged. Is that the reason?

Yeah, so Surya, yes, this side. Surya, if I, you know, the question regarding there's an uptick in the volumes, the uptick in volumes is a combination of various factors. Like Mitesh also mentioned, it's a combination of both on the retail side as well as on the PPP side on the Rajasthan. And in terms of the price per test coming down, of course, since it's a blended combination, you know, blended price coming from PPP as well as the retail side, this is where you see the price per test coming down. Having said that, on the retail side, if you see, both the volumes have increased because of various activations done by the, you know, retail team, whether it is ground level activations as well as, you know, increasing our standard network. And there also we are seeing an uptick in both in volumes as well as on the price front as well. But because, you know, the largest share of volumes comes overall from PPP projects, you will see some reposition in the price point.

Sorry, sir. Your voice is breaking. So it is, whether it is to me or it is for everybody, I don't know, but it is, the voice is breaking. Is it audible now? Am I clear?

Yeah, yeah, yeah, it is clear now.

Okay.

So, I was saying that if you see the volume have increased because it's a combination of both our PPP as well as our retail, there have been various activations on the retail front which are also helping us on the volume front. On the PPP side, Rajasthan is also one of the key volume drivers, and the price that you saw that the price has lowered is also a blended price coming from a combination of PPP and retail. So, on retail, in some aspects, the price has increased, but on the PPP side, because it's a large project there, because of the PPP prices that we offer in Rajasthan, on a blended basis, you see price coming down. But overall, directionally, both the volumes and business is growing. You know, if you see, importantly, we have delivered almost 35% year-on-year growth, and that's how I would see a reflection of our business.

Furthermore, to add, as I was mentioning, the video projects are also ramping up, especially in Maharashtra and MRI projects and all. So, as I said, it is more often momentarily as in quarterly. In the coming quarters, you will see revenue per test will start again going up, and rather it will surpass what we are currently at.

But this test volume is the kind of now new normalized quarterly run, let's say, test volume. Yes.

Yeah, and this will continue to grow from here on.

Okay. My second question is on the cost side. See, were there any cost allocation changes that we have seen in the recent quarters? Because in the recent quarters, what we are seeing that there is a drop in the other expenses, whereas the fees to the hospital and the channel partners, that is rising. So, what is the kind of a swing that we assume or what is driving this swing between the cost elements?

Yeah, so you rightly picked it up. What we've done is, as I said, in terms of various cost-optimized measures, we have done across our consumable cost, reagents cost, as well as on the employee cost. The fees to hospital and channel partners is a direct link to our Rajasthan revenues because there, as we mentioned earlier, in large PPE projects, we work with our channel partners. So as and when these revenues ramp up happens, you'll also see corresponding increase in those line of expenses. But overall, if you see the EBITDA level and from a profit margin perspective, we've kept that intact through a combination of these levers. So it's not an aberration or it is not something which is unusual. It is only that because Rajasthan project, most of these expenses are managed through our partners or the operations through the partners, and this is where you see the expenses increasing. And the trend will be more or less similar in these lines.

Okay, just one bookkeeping question. Can you share the split between the radiology and pathology, and also the number of centers that we would have achieved in RPL currently?

Sure, we will send the details off later. Sure, okay.

Thank you. The next question comes from the line of Rushabh from RBSA Investment Manager, LLP. Please go ahead.

Hi, sir. Sir, if I heard it correctly, we mentioned that we want to increase the B2G plus the cash-based BPPs to 40% of revenues by FI 27. And so what is the current blended share of this as on date?

So, currently, the share is around 35% to 38%. We will continue to maintain that. In fact, some of the recent PPP projects that we have added on, which are on cash as well, we expect that to increase. And overall, if you see by the year end, with the overall business also increasing, we'll try to have around 40% to 45% of cash-based PPP projects contributing to our overall mix.

So, this is a new norm from the government or is it like selective we are pursuing such projects where the cash-based PPP is a preferred way of doing business for us? So, is there a change from our end or from the government tender side?

No, no, it's a combination of both. Consciously, we are also kind of being selective about choosing certain cash-based PPP projects. And there are certain governments which prefer the cash-based, you know, because when they don't have certain government allocations, they are preferring the cash. So, it's kind of working both ways.

So incrementally, if the share of these projects go up, how do you see the impact of working capital and receivable and that sort of, how is it different from the current earlier projects which are not cash-based, from a one-year perspective?

Correct. So, I think from a one-year perspective, this is certainly a very positive development because, you know, with more cash coming in, the working capital requirements will also reduce. There will be more cash to use it for further investments and further requirements. And this is also where we are trying to focus our efforts in terms of ramping up our cash with PPP projects.

So, from a GA perspective, can we take it to more than 60%? Is there a possibility?

Yes, we are working towards it. Our initial, like you mentioned, initially the aspiration was 50%, but we are also working ferociously to improve it further. In fact, there will be certain announcements on certain PPP tenders which are in pipeline, which are again cash-based, and hopefully we will be announcing them very soon.

Okay. Thanks, we mentioned that we want to improve the ROC targets. So primarily, apart from improving the B2C and the PPP, cash-based PPP, what other levers do we have and what is the internal target for improving the ROC and how much can we, the next two, three years, how much do we want to improve it to?

Yeah, again, that's a good question. As management, we are focused on improving our ROCs. We have taken certain strategic decisions around that as well. If you see, we recently informed that we are looking at a sale leaseback model as well as, you know, the cash, focusing on cash businesses will also help us improve the ROCs. And at the same time, from a margin perspective, we are trying to do a lot of cost optimization, which will further improve the bottom lamps and therefore the ROCs. So there are multiple levers that we are working towards in terms of improving the ROCs. Of course, you know, aspirations are to have it in double digit on the higher team, and we're working towards it.

Furthermore, what Mr. Yesha has mentioned, we have already announced getting the tender for HPCT, 34CT machines for HP, and the PETCT project for Punjab, and both these projects are cash-led. So, having said that, that is the one strong lever, apart from what Yesha has mentioned, that will continue to drive it through for building onto the ROC part to it.

In terms of margins in cash-based and non-cash-based, margins are similar or is it higher in cash-based?

No, margins are similar at a project level. However, when you look at it from a company level, of course, it adds to the margin because then the financing cost element kind of goes down.

Okay, okay, thank you.

Thank you. The next question comes from the line of Deepak Ajmera from Elprog International Limited. Please go ahead.

Hello, am I audible? Yes, you are audible. Congrès from the good set of the numbers, sir. So, my first question is for the next leg of growth. Currently, we are doing great numbers from Rajasthan and other events, but for the next leg of growth from FR29, what are the key levers will play a role in terms of growth?

Yeah. Thanks, Deepak. So, Deepak, as I mentioned, currently, Krishna has a couple of levers that are in works. The first one is our new PPP projects. We recently won the PPP project for Fetch CT in Punjab, which is, again, a cash-based project. Then there is the Himachal Pradesh 34 CT scans, which we announced. These are, again, 15 years plus tenders with a long-term visibility of revenue. Then there are retail operations which are scaling up with a lot of activations happening on ground. The fourth lever is Apulki, where we have a strategy type, and as these hospitals are gearing up, they will also contribute additional revenues to Krishna's kitty. So we have multiple fronts through which we are looking forward to have growth coming in, and predominantly majority of the growth coming from cash portion of this new business.

Okay, and currently, if you can just bifurcate how the incremental revenue would come from the other events and these new projects versus the existing ones, if you can just highlight on this part, and also on the retail, how do you see the retail will grow in 3-4 years as we are seeing a good traction over there.

Yeah, so with regards to the incremental business, since we've just kind of, you know, got these two tenders, and there are a couple of more tenders in the pipeline, the overall impact on the incremental business, we'll probably share in the coming quarters. As regards retail, our aspirations are to grow retail into sizable, you know, like we mentioned, we want retail to be double-digit in terms of the overall contribution to total revenues, and that is where we are working towards.

And we are hoping and we are going to end the FI27 by the double-digit contribution of the retail. And in coming two to three years' time, we are looking for around somewhere near to higher teams going towards 20-plus kind of guidance in next two to three years' time with the multiple initiatives and the overall strategies that we have built on.

And on working capitals days, what can be the sustainable working capitals we can see in this 2-3 years as we will grow with 20% of growth. And so how are we going to be managed this?

Yeah, so as I said, a combination of first of all, collecting our dues as well as then with this cash PPPs, we are trying to bring back a working capital to the historical, you know, around 90-200 days kind of limits.

Okay, thank you.

Thank you. Thank you. The next question comes from the line of Aritya Chheda from InCred Asset Management. Please go ahead.

Hi. So, tables went from 63 crores to 230 crores. Is this money owed to Rajasthan partners or equipment suppliers or regular suppliers? And second on the test volume growth, can you break that down into base business growth, growth from Rajasthan and if you are including retail within that house?

Aditya, can you just repeat the second question, please?

On the test volume growth, can you break that 85% growth? How much came from the base business? How much from the Rajasthan? And if you are including retail volumes, also within doubt, it would be helpful to understand the volume growth better.

So, Aditya, on the first part of the question, on the table side, it's a combination of various, both our creditors as well as some of our creditors towards the project enhancement and capital nature of these tables. On the volume mix, those details will be shared with you offline.

Thank you, guys.

Thank you.

The next question comes from the line of Anil Gupta, who is an individual investor. Please go ahead.

Hello. Thank you for the opportunity. My question is regarding the Rajasthan tender. How much of that tender has been executed, say 75% or 80% and 20% is yet to be executed kind of thing? If you can give a color to that.

So, in terms of the implementation from the project perspective, the lab perspective, as per the tender conditions, almost a majority of the labs have been implemented. There are some additional labs which the government have asked us to implement, and that implementation is currently going on.

Okay, but can you give a broad percentage in terms of how much percentage of the labs have been executed overall? 75 to 80 percent have been implemented. Okay. So, my second question is regarding the retail business. Have we come to a bit of a positive in the retail business this quarter or we'll achieve it in the next quarter or by the end of the financial year? Can you give a color to that?

Yeah, with the overall traction and the positive encouragement coming out from the market. We are operationally break-even in the month of September, more or less, but however, it needs lots of brand and the marketing interventions for which it is required to create awareness, which we are doing and will continue doing that. At an overall level, we are hoping to be absolute break-even with the marketing and the operational front, both put together by quarter three and or early quarter four, and we are exiting F527 with the sheer positive EBITDA numbers for the retail front.

Okay. Okay. Thank you. Thank you.

Thank you for the time.

Thank you. Ladies and gentlemen, that was the last question today. We have reached the end of question and answer session. I now hand the conference over to management for closing comments.

Thanks, Sidant. I hope you've answered all the questions. If there are any questions which remain unanswered, please reach out to our investor relationship teams. Thank you, Kouros, and wishing everyone a very happy Diwali. Thank you.

Thank you. On behalf of Krishna Diagnostics Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.